A systematic investment plan (SIP) invests a fixed amount in a mutual fund every month. Small amounts invested regularly for a long time grow surprisingly large because returns earn returns of their own. This calculator shows what your SIP could be worth.
The SIP formula
Future value = P × [((1 + r)ⁿ − 1) ÷ r] × (1 + r)P = monthly SIP, r = expected yearly return ÷ 12 ÷ 100, n = number of monthsThe extra (1 + r) at the end is because each SIP instalment is invested at the start of the month and earns returns for the whole month.
Worked example
Example: ₹10,000 a month for 15 years at 12%
You invest ₹18 lakh in total.
Estimated value: ₹50.46 lakh, of which ₹32.46 lakh is gains.
After 10 years the value is about ₹23.2 lakh; the last 5 years add more than the first 10, which is compounding at work.
Mutual fund returns aren't guaranteed. Results use the rate you enter as if it were earned every year; real returns go up and down.
What return should you assume?
Indian equity funds have historically delivered around 10–14% a year over long periods, but with big swings, and past returns don't promise future ones. Many planners use 10–12% for equity, 6–8% for hybrid funds and 6–7% for debt funds. Run the calculator with a lower rate too, to see a cautious outcome.
Tax on mutual fund gains
- Equity funds: gains on units held over 12 months are taxed at 12.5% above ₹1.25 lakh of such gains a year; gains within 12 months at 20%.
- Debt funds bought from April 2023: gains are added to your income and taxed at your slab rate.
Increasing your SIP each year with your salary makes a big difference; see the step-up SIP calculator.
How to use this calculator
- Enter your monthly SIP amount.
- Enter an expected yearly return.
- Choose how many years you'll invest.
FAQs
What return should I assume?
Use a cautious figure. Past equity fund returns don't guarantee future ones, and real returns vary every year.
How are SIP gains taxed?
For equity funds held over a year, gains above ₹1.25 lakh a year are taxed at 12.5%. Within a year, 20%.
Results are estimates and aren't financial advice. For decisions about your own money, check with a qualified adviser. Spotted a mistake? Tell us.