SIP Calculator

A SIP is a method of investing a fixed amount in a mutual fund scheme at regular intervals — typically monthly. Instead of investing a lump sum, you invest a fixed amount (e.g. ₹5,000) every month. This averages out the purchase cost over time (rupee cost averaging) and builds the habit of disciplined investing. SIPs are the most popular way to invest in Indian mutual funds.

SIP returns use the future value of an annuity formula: FV = P × ((1 + r)^n − 1) ÷ r × (1 + r), where P = monthly investment, r = monthly return rate (annual rate ÷ 12), and n = number of months. The result compounds monthly. A 12% annual return = 1% monthly, which is a reasonable long-term assumption for Indian equity mutual funds (though past performance is not guaranteed).

For equity mutual funds in India, long-term historical returns have been 12–15% CAGR over 10+ year periods. Large-cap funds: 10–12%. Mid-cap funds: 13–16%. Small-cap funds: 14–18% (with higher volatility). Debt funds: 6–8%. Hybrid funds: 9–11%. These are historical averages — actual future returns will vary. The calculator defaults to 12% which is a commonly used conservative-to-moderate assumption for long-term equity SIPs.

CAGR (Compound Annual Growth Rate) measures the return assuming a single lump-sum investment. XIRR (Extended Internal Rate of Return) accounts for multiple cash flows at different dates — which is exactly what SIP is. XIRR is the correct metric for SIP returns and is shown on your mutual fund statement. The calculator shows CAGR as an approximation — for precise XIRR, use the fund's official statement.

Neither is universally better. SIP is better when markets are volatile or you cannot invest a lump sum — it reduces timing risk through rupee cost averaging. Lump sum is mathematically better when markets are low and trending up, since all your money starts compounding immediately. A common strategy: invest lump sums during market corrections and maintain a SIP for regular monthly investing.

Most mutual funds in India allow SIPs starting from ₹100–₹500 per month. Popular funds like Mirae Asset, Axis, HDFC, ICICI Prudential, and SBI Mutual Fund offer SIPs from ₹500/month. Some platforms (Groww, Zerodha Coin, Paytm Money) support ₹100 SIPs in select funds. Direct plan SIPs have the same minimums but lower expense ratios than regular plans.

Yes — this is called a Step-Up SIP or Top-Up SIP. You increase your SIP amount by a fixed % or amount each year (e.g. 10% annually). This is highly effective: a ₹5,000/month SIP at 12% over 20 years gives ₹49.95 lakh. The same SIP with 10% annual step-up gives ₹1.19 crore — over 2x more. Align your SIP increase with your annual salary increment.