Quick answer
How much will a ₹10,000 monthly SIP grow to?
A ₹10,000 monthly SIP for 15 years at an expected 12% annual return grows to about ₹50.46 lakh. You invest ₹18 lakh, and the remaining ₹32.46 lakh is estimated growth. Raising the SIP by 10% every year lifts the total to about ₹86.8 lakh.
- Formula: M = P × [(1 + i)n − 1] ÷ i × (1 + i)
- ₹1 crore target: about ₹10,000 a month for 20 years at 12%
- Tax: equity LTCG of 12.5% above ₹1.25 lakh a year
What is a SIP calculator?
A SIP calculator estimates the future value of a Systematic Investment Plan (SIP), where you invest a fixed amount in a mutual fund every month. It applies compound growth to each monthly instalment and adds them up.
Use it to answer questions like “how much will ₹5,000 a month become in 20 years?” or “how much SIP do I need for ₹1 crore?”, then pick an amount and time frame that fit your goal.
How are SIP returns calculated?
For a fixed monthly SIP made at the start of each month, the maturity value is:
- M: maturity value
- P: monthly investment
- i: monthly rate = annual return ÷ 12 ÷ 100
- n: number of monthly instalments
Worked example: ₹10,000 a month for 15 years at 12%
Here i = 0.01 and n = 180.
You invest ₹18,00,000 in total. The remaining ₹32,45,760 is estimated growth.
What is a step-up SIP?
A step-up (or top-up) SIP raises your monthly amount by a fixed percentage once a year, usually in line with salary hikes. Most fund houses let you set it up when you start the SIP.
Frequently asked questions
Is the SIP calculator result guaranteed?
No. The calculator assumes a constant annual return. Real mutual fund returns rise and fall, so treat the result as an estimate for planning, not a promise.
What return rate should I use in a SIP calculator?
Many planners use 10–12% for long-term equity funds, 7–9% for hybrid funds and 6–7% for debt funds. Use a lower rate if you want a cautious plan.
How much SIP do I need for ₹1 crore?
At 12% a year you need about ₹10,000 a month for 20 years (₹99.9 lakh) or about ₹20,000 a month for 15 years (₹1.01 crore).
Is SIP better than a lumpsum investment?
SIP spreads your buying over time and suits a monthly salary. A lumpsum can earn more if markets rise soon after you invest. Many investors combine both.
How are SIP returns taxed in India?
Each instalment is taxed separately when you redeem. For equity funds, gains held over 12 months are long-term capital gains, taxed at 12.5% on gains above ₹1.25 lakh a year. Gains held for 12 months or less are taxed at 20%.
What is a step-up SIP?
A step-up SIP raises your monthly instalment by a fixed percentage once a year, usually in line with salary hikes. A 10% step-up on ₹10,000 for 15 years at 12% grows to about ₹86.8 lakh instead of ₹50.5 lakh.