What is a SIP?
A Systematic Investment Plan invests a fixed amount in a mutual fund every month, buying more units when prices are low and fewer when high (rupee-cost averaging). Over long periods the combination of regular investing and compounding builds substantial wealth from modest monthly amounts. This calculator projects the maturity value for a fixed or step-up SIP and shows invested amount, gains, inflation-adjusted value and a year-by-year table.
SIP formula
FV = P × [((1 + i)n − 1) ÷ i] × (1 + i), where P is the monthly SIP, i the monthly return (annual ÷ 12) and n the number of months. The final (1 + i) factor reflects investment at the start of each month.
Worked example
₹10,000 per month for 15 years at 12%: invested ₹18,00,000; maturity value ₹50,45,760; wealth gained ₹32.46 lakh. Extend to 20 years and the value becomes ₹99.9 lakh — the last five years add almost as much as the first fifteen. With a 10% annual step-up, the 15-year value rises to about ₹87 lakh on ₹38 lakh invested.
Step-up SIP
A step-up (top-up) SIP increases the monthly amount by a fixed percentage every year, matching salary growth. Even a 10% annual step-up roughly doubles the final corpus over 15–20 years compared with a flat SIP. Enter the step-up percentage to see the difference against a fixed SIP.
Inflation-adjusted value
A corpus of ₹50 lakh after 15 years buys what about ₹21 lakh buys today at 6% inflation. The calculator shows the real value so you can plan goals in today's rupees.
Taxation of SIP gains (FY 2025-26)
- Equity funds: units held over 12 months are LTCG taxed at 12.5% on gains above ₹1.25 lakh per year; shorter holdings are STCG at 20%.
- Each SIP instalment has its own holding period (first-in-first-out on redemption).
- Debt funds bought after 1 April 2023 are taxed at slab rate regardless of holding period.
Returns are assumptions, not guarantees. Equity SIPs are suitable for goals at least 5–7 years away.
Frequently Asked Questions
What return should I assume for an equity SIP?
10–12% per annum is a reasonable long-term assumption for diversified equity funds; use 7–8% for debt or hybrid funds. Lower assumptions give safer plans.
What is a step-up SIP?
A SIP whose amount increases by a fixed percentage each year, in line with your income. It significantly increases the final corpus.
Are SIP returns guaranteed?
No. Mutual fund returns depend on market performance. The calculator projects a constant rate for planning purposes only.
How are SIP gains taxed?
Equity fund gains held over one year are taxed at 12.5% beyond ₹1.25 lakh per year; short-term gains at 20%. Each instalment is tracked separately.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.