How this SIP calculator works
A Systematic Investment Plan (SIP) invests a fixed amount into a mutual fund every month. Each instalment compounds until maturity, so earlier instalments grow the most. The standard formula for a regular SIP is:
FV = P × [ ((1 + i)ⁿ − 1) ÷ i ] × (1 + i)
where P = monthly SIP, i = annual return ÷ 12, n = months
where P = monthly SIP, i = annual return ÷ 12, n = months
With a step-up, your instalment rises by the chosen percentage every 12 months; this calculator compounds each month individually, so step-up results are exact rather than approximated.
Example
₹10,000 per month for 10 years at 12% grows to about ₹23.2 lakh on a total investment of ₹12 lakh — wealth gain of ₹11.2 lakh. Add a 10% annual step-up and the corpus jumps to roughly ₹32 lakh.
Tips to get realistic numbers
- Use 10–12% for equity funds over 10+ years, not last year's bull-run return.
- Returns are not guaranteed — SIPs reduce timing risk, not market risk.
- Inflation of ~6% means ₹23 lakh in 10 years buys what ~₹13 lakh buys today. See the lumpsum calculator for inflation-adjusted values.