🎯 SIP Calculator

₹ 10,000
10 Years
12%
10%

📋 Complete SIP Schedule

 

Disclaimer:

1. Past performance may or may not be sustained in future and is not a guarantee of any future returns.
2. Please note that these calculators are for illustrations only and do not represent actual returns.
3. Mutual Funds do not have a fixed rate of return and it is not possible to predict the rate of return.

Planning to invest in mutual funds through SIP?
Use this free Mutual Fund SIP Calculator to estimate how much your investment can grow over time.This calculator helps you:Calculate SIP returnsAdd annual step-up (yearly increase in SIP)Understand long-term capital gains (LTCG) taxKnow the final take-home amountIt’s designed for Indian investors who want a clear and realistic picture of their mutual fund investments.

SIP Calculator – Calculate Mutual Fund Returns Online | Free SIP Investment Calculator 2026

Plan your financial future with India’s most accurate SIP calculator. Calculate mutual fund returns, visualize investment growth, and understand LTCG tax implications – all in one place. Perfect for equity, debt, and hybrid fund investments.

What is SIP (Systematic Investment Plan)?

A Systematic Investment Plan (SIP) is a disciplined investment method where you invest a fixed amount in mutual funds at regular intervals – monthly, quarterly, or annually. Instead of timing the market, SIP allows you to build wealth through the power of compounding and rupee cost averaging.

Key Benefits of SIP Investment

  • Rupee Cost Averaging: Buy more units when markets are low and fewer when high, averaging your purchase cost
  • Power of Compounding: Earn returns on your returns, exponentially growing your wealth over time
  • Disciplined Investing: Auto-debit ensures regular investment without manual intervention
  • Flexibility: Start with as low as ₹500 per month and increase anytime
  • Lower Risk: Distribute investment across market cycles, reducing timing risk
  • Wealth Creation: Ideal for long-term goals like retirement, children’s education, or home purchase

How to Use Our SIP Calculator?

Our advanced SIP calculator helps you plan your mutual fund investments with precision. Follow these simple steps:

  1. Enter Monthly SIP Amount: Choose how much you want to invest monthly (₹1,000 to ₹1,00,000)
  2. Select Investment Duration: Pick your investment period (1 to 40 years)
  3. Expected Annual Return: Set realistic return expectations (5% to 20% p.a.)
    • Equity Funds: 12-15% historically
    • Debt Funds: 6-8% typically
    • Hybrid Funds: 9-12% average
  4. Annual SIP Step-Up: Plan to increase your SIP amount yearly (0-30%)
    • Recommended: 10% annual increase to match salary hikes
    • Accelerates wealth creation significantly
  5. Click Calculate: View detailed results with tax implications

Understanding Your SIP Calculator Results

Total Amount Invested

This shows the total principal amount you will invest over the selected period. With step-up SIP, this amount increases as your monthly contribution grows each year.

Estimated Returns (Capital Gains)

The profit earned on your investment through market appreciation and compounding. This is the difference between your final portfolio value and total invested amount.

LTCG Tax Calculation – Explained

Long Term Capital Gains (LTCG) tax applies to equity mutual fund profits held for more than 12 months. Here’s the breakdown:

  • Exemption Limit: ₹1,25,000 per financial year (tax-free)
  • Tax Rate: 12.5% on gains exceeding ₹1.25 lakh
  • Example: If your gains are ₹5 lakh:
    • Exempt: ₹1.25 lakh
    • Taxable: ₹3.75 lakh
    • Tax: ₹46,875 (12.5% of ₹3.75 lakh)

Final Take-Home Value

Your actual corpus after deducting LTCG tax – the real amount you’ll receive when you redeem your investment.

SIP Step-Up Strategy: Boost Your Returns

A step-up SIP allows you to increase your monthly contribution annually. This powerful strategy can significantly enhance your wealth creation:

Step-Up SIP Example

Scenario: ₹10,000/month SIP for 20 years at 12% return with 10% annual step-up

  • Year 1: ₹10,000/month
  • Year 2: ₹11,000/month
  • Year 3: ₹12,100/month
  • Year 10: ₹23,579/month
  • Year 20: ₹61,159/month

Result:

  • Regular SIP (no step-up): ₹1.00 Crore
  • Step-Up SIP (10%): ₹1.85 Crore
  • Extra Wealth: ₹85 Lakhs!

Best Mutual Funds for SIP Investment in 2026

1. Equity Mutual Funds (High Growth)

  • Large Cap Funds: Lower risk, stable returns (10-12%)
  • Mid Cap Funds: Moderate risk, higher growth (12-15%)
  • Small Cap Funds: High risk, maximum returns (15-18%)
  • Flexi Cap Funds: Balanced exposure across market caps

2. Debt Mutual Funds (Stable Income)

  • Liquid Funds: Emergency funds, high liquidity (6-7%)
  • Corporate Bond Funds: Better returns than FD (7-8%)
  • Gilt Funds: Government securities, safest option

3. Hybrid Mutual Funds (Balanced)

  • Aggressive Hybrid: 65-80% equity (10-12%)
  • Conservative Hybrid: 25-40% equity (8-10%)
  • Balanced Advantage: Dynamic allocation

4. Index Funds & ETFs (Low Cost)

  • Nifty 50 Index: Track top 50 companies (11-13%)
  • Nifty Next 50: Mid-cap exposure (12-15%)
  • Sectoral Funds: Banking, IT, Pharma specific

Smart SIP Investment Strategies for Maximum Returns

1. Goal-Based SIP Planning

  • Short-term (1-3 years): Debt/Liquid funds, Conservative hybrid
  • Medium-term (3-5 years): Balanced hybrid, Large cap funds
  • Long-term (5+ years): Equity funds, Small/Mid cap for maximum growth

2. Asset Allocation Strategy

  • Aggressive (Age 20-35): 80% Equity, 20% Debt
  • Moderate (Age 35-50): 60% Equity, 40% Debt
  • Conservative (Age 50+): 40% Equity, 60% Debt

3. Diversification Formula

  • Don’t put all eggs in one basket
  • Invest across 4-6 different funds
  • Mix of large cap, mid cap, and international funds
  • Include one debt fund for stability

Common SIP Mistakes to Avoid

  1. Stopping SIP During Market Falls: Best time to buy more units at lower NAV
  2. Unrealistic Return Expectations: Don’t expect 20%+ consistently; 12-15% is healthy for equity
  3. Not Using Step-Up: Missing 50-70% extra wealth potential
  4. Too Many Funds: Over-diversification reduces returns; 4-6 funds are optimal
  5. Ignoring Exit Load: Most funds charge 1% if redeemed before 1 year
  6. Not Reviewing Portfolio: Rebalance annually, eliminate underperformers
  7. Timing the Market: SIP works best with consistent investing, not market timing
  8. Investing Without Goals: Define clear financial targets before starting

SIP Tax Benefits & Implications 2026

ELSS (Tax Saving) Mutual Funds

  • Section 80C Deduction: Up to ₹1.5 lakh per year
  • Lock-in Period: 3 years (shortest among 80C options)
  • Returns: 12-15% historically, better than PPF/FD
  • SIP Advantage: Each SIP installment has separate 3-year lock-in

Capital Gains Tax

Fund Type Holding Period Tax Rate Exemption
Equity Funds Less than 12 months 15% (STCG) None
Equity Funds More than 12 months 12.5% (LTCG) ₹1.25 lakh/year
Debt Funds Any period As per income tax slab None

SIP vs Other Investment Options

SIP vs Lump Sum Investment

Factor SIP Lump Sum
Risk Lower (rupee cost averaging) Higher (market timing risk)
Capital Needed Low (start with ₹500) High (need large amount)
Market Timing Not required Critical for returns
Discipline Automatic monthly debit One-time decision
Best For Salaried, long-term goals Market dips, windfall money

SIP vs Fixed Deposit (FD)

  • Returns: SIP (12-15%) vs FD (6-7%)
  • Liquidity: SIP (high, except ELSS) vs FD (penalty on early withdrawal)
  • Tax: SIP (12.5% LTCG on gains above ₹1.25L) vs FD (full interest taxable)
  • Inflation Beating: SIP (Yes) vs FD (No)
  • Risk: SIP (market-linked) vs FD (guaranteed)

SIP vs Recurring Deposit (RD)

  • Average Returns: SIP 12-15% vs RD 6-7%
  • Wealth Creation: ₹10,000/month for 20 years @ 12% = ₹1 Cr (SIP) vs ₹29 Lakh (RD @ 7%)
  • Tax Efficiency: SIP better with ₹1.25L exemption

SIP vs PPF (Public Provident Fund)

  • Lock-in: SIP (None or 3 years for ELSS) vs PPF (15 years)
  • Returns: SIP (12-15%) vs PPF (7.1% currently)
  • Max Investment: SIP (No limit) vs PPF (₹1.5 lakh/year)
  • Tax: Both offer benefits under 80C
  • Risk: SIP (Moderate) vs PPF (Zero – Government backed)

Real SIP Success Stories & Examples

Example 1: Retirement Planning (Age 30)

Goal: ₹5 Crore retirement corpus by age 60

Strategy:

  • Monthly SIP: ₹15,000
  • Duration: 30 years
  • Expected Return: 12% p.a.
  • Annual Step-up: 10%

Result:

  • Total Invested: ₹1.32 Crore
  • Final Corpus: ₹6.89 Crore
  • Gains: ₹5.57 Crore
  • Goal Achieved: ✓

Example 2: Child’s Education (Age of Child: 5)

Goal: ₹50 Lakh for engineering/medical college in 13 years

Strategy:

  • Monthly SIP: ₹10,000
  • Duration: 13 years
  • Expected Return: 14% p.a. (equity funds)
  • Annual Step-up: 5%

Result:

  • Total Invested: ₹21.54 Lakh
  • Final Corpus: ₹53.26 Lakh
  • Gains: ₹31.72 Lakh
  • Goal Achieved: ✓

Example 3: First Home Down Payment (Age 28)

Goal: ₹25 Lakh down payment in 7 years

Strategy:

  • Monthly SIP: ₹15,000
  • Duration: 7 years
  • Expected Return: 12% p.a.
  • Annual Step-up: 15%

Result:

  • Total Invested: ₹17.89 Lakh
  • Final Corpus: ₹27.34 Lakh
  • Gains: ₹9.45 Lakh
  • Goal Achieved: ✓

How Much Should You Invest in SIP?

Income-Based SIP Guidelines

Monthly Income Recommended SIP Percentage
₹30,000 – ₹50,000 ₹3,000 – ₹7,500 10-15%
₹50,000 – ₹1,00,000 ₹7,500 – ₹20,000 15-20%
₹1,00,000 – ₹2,00,000 ₹20,000 – ₹50,000 20-25%
₹2,00,000+ ₹50,000+ 25-30%

Age-Based SIP Allocation

  • Age 20-30: Aggressive – 30-40% of income in equity SIP
  • Age 30-40: Growth-focused – 25-30% of income
  • Age 40-50: Balanced – 20-25% of income
  • Age 50-60: Conservative – 15-20% of income, shift to debt

50-30-20 Rule for SIP

  • 50%: Necessities (rent, food, utilities)
  • 30%: Wants (entertainment, dining, travel)
  • 20%: Savings & Investments
    • 5% Emergency fund
    • 10% SIP (Equity mutual funds)
    • 5% Other investments (PPF, Gold, etc.)

When to Start & Stop Your SIP?

Best Time to Start SIP

  • Now is Always the Best Time: Don’t wait for market corrections
  • After Getting First Salary: Build investing habit early
  • Beginning of Financial Year: Plan tax-saving ELSS investments
  • Market Crash: Best opportunity to accumulate more units
  • Bonus/Increment: Start additional SIP with extra income

When to Stop or Pause SIP?

  • Goal Achieved: When target corpus is reached
  • Job Loss: Pause (don’t stop) if emergency funds depleted
  • Major Expense: Temporary pause for 3-6 months acceptable
  • Poor Fund Performance: Switch to better fund, don’t stop SIP
  • Never stop during: Market falls – that’s when you benefit most!

Rebalancing Strategy

  • Annual Review: Check portfolio performance every year
  • Underperforming Funds: Exit if consistently below category average for 3 years
  • Asset Allocation: Rebalance if equity exceeds 70% of portfolio
  • Systematic Transfer: Move from equity to debt 5 years before goal

Frequently Asked Questions (FAQs)

Q1: What is a good SIP amount to start with?

A: Start with at least ₹1,000-₹2,000 per month if you’re a beginner. Ideally, invest 15-20% of your monthly income. You can start small and increase gradually using step-up SIP.

Q2: Can I have multiple SIPs?

A: Yes! You can invest in 4-6 different mutual funds across categories (large cap, mid cap, debt) for diversification. Just ensure you can manage all investments comfortably.

Q3: What is the minimum duration for SIP?

A: While there’s no minimum, SIP works best for 5+ years to harness compounding. For ELSS tax-saving funds, there’s a 3-year lock-in period. Short-term goals (<3 years) are better suited for debt funds.

Q4: Can I stop SIP anytime?

A: Yes, you can stop SIP anytime (except during ELSS 3-year lock-in). However, continuing through market ups and downs maximizes returns. Pausing is better than stopping permanently.

Q5: What happens if I miss a SIP payment?

A: One missed payment doesn’t cancel your SIP. After 2-3 consecutive misses (varies by AMC), your SIP may be auto-cancelled. You can restart anytime. Ensure sufficient balance on SIP date.

Q6: Is SIP better than lump sum investment?

A: SIP is better for regular income earners as it reduces timing risk through rupee cost averaging. Lump sum works during market crashes or if you have a windfall. Combination of both is ideal.

Q7: How is SIP return calculated?

A: SIP returns are calculated using XIRR (Extended Internal Rate of Return) method, which accounts for different investment dates and amounts. Our calculator uses compound annual growth rate (CAGR) for simplified projections.

Q8: What is step-up SIP and should I use it?

A: Step-up SIP automatically increases your monthly investment by a fixed percentage annually (typically 5-10%). Absolutely recommended! It aligns with salary increments and can boost your final corpus by 50-80%.

Q9: Which is better – monthly or quarterly SIP?

A: Monthly SIP is better for salaried individuals as it offers more frequent investment opportunities and better rupee cost averaging. Quarterly SIP suits business owners or those with irregular income.

Q10: How to choose the best SIP date?

A: Choose 1st, 5th, or 10th of the month if salary comes early in the month. This ensures sufficient balance. Avoid 30th/31st as some months don’t have these dates. Any date works for long-term returns.

Q11: Is SIP tax-free?

A: No, but tax-efficient. Equity SIP gains over ₹1.25 lakh per year are taxed at 12.5% LTCG (if held >12 months). ELSS SIP offers 80C deduction up to ₹1.5 lakh. Debt funds taxed as per income slab.

Q12: Can I withdraw SIP money anytime?

A: Yes, open-ended mutual funds allow withdrawal anytime (except ELSS 3-year lock-in). However, exit load (typically 1%) applies if withdrawn within 1 year. Ideal to stay invested for 5+ years.

Q13: What is the maximum amount I can invest in SIP?

A: There’s no upper limit for regular SIP. For ELSS (tax-saving), only ₹1.5 lakh qualifies for 80C deduction, but you can invest more. Ensure it fits your financial plan and risk appetite.

Q14: How much can ₹5,000 SIP become in 10 years?

A: At 12% return: approximately ₹11.5 lakh (investment: ₹6 lakh). With 10% annual step-up: approximately ₹14.2 lakh. Use our calculator above for precise calculations based on your parameters.

Q15: Should I continue SIP when market is high?

A: Yes! Never stop SIP based on market levels. SIP averages your cost across market cycles. Stopping during highs means you miss buying during future lows. Stay consistent for best results.

Expert Tips for Successful SIP Investment

  1. Start Early: Even ₹1,000/month at age 25 beats ₹5,000/month at age 35 due to compounding
  2. Stay Disciplined: Never skip SIP installments; auto-debit ensures consistency
  3. Increase Gradually: Use 10% annual step-up to match salary growth
  4. Diversify Smartly: 4-6 funds across categories, not 15-20 funds
  5. Review Annually: Check performance once a year, not daily/weekly
  6. Ignore Short-term Volatility: Focus on 5-10 year horizon, not 6 months
  7. Don’t Time the Market: SIP is designed to work in all market conditions
  8. Automate Everything: Set and forget – let auto-debit handle investments
  9. Have Emergency Fund First: Keep 6 months expenses before aggressive SIP
  10. Align with Goals: Different SIPs for different goals (retirement, education, house)

Start Your SIP Journey Today!

Use our advanced SIP calculator above to plan your financial future. Calculate your returns, visualize growth, and understand tax implications – all in seconds. Whether you’re planning for retirement, children’s education, or wealth creation, our calculator helps you make informed investment decisions.

Why Use Our SIP Calculator?

  • ✅ Accurate calculations with step-up SIP feature
  • ✅ Detailed LTCG tax breakdown
  • ✅ Monthly & annual chart visualization
  • ✅ Year-wise SIP schedule
  • ✅ Mobile-friendly, easy to use
  • ✅ 100% Free, no registration needed

Disclaimer: The calculations provided by this SIP calculator are for illustrative purposes only. Actual mutual fund returns may vary based on market conditions. Past performance doesn’t guarantee future results. Please consult a certified financial advisor before making investment decisions.

Related Investment Calculators & Tools

  • Lump Sum Calculator
  • SWP (Systematic Withdrawal Plan) Calculator
  • STP (Systematic Transfer Plan) Calculator
  • PPF Calculator
  • FD Calculator
  • EMI Calculator
  • Retirement Calculator
  • Compound Interest Calculator
  • CAGR Calculator
  • XIRR Calculator