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SIP Calculator
Project your mutual-fund SIP corpus — with step-up, inflation-adjusted value, a goal, and post-tax LTCG. Accurate, instant and free — for India.
What these mean:
What these mean:
What these mean:
₹10,000/month for 20 years at 12% (simple).
Growth over time
20 yrsHow SIP returns are calculated
A Systematic Investment Plan (SIP) invests a fixed amount each month into a mutual fund. Because each instalment is invested at a different time, it earns compound returns for a different number of periods. The total corpus is the future value of an annuity-due (deposits at the start of each period). This calculator supports a regular SIP, annual step-up, inflation-adjusted real value, and a goal/reverse mode (solve for the monthly amount needed to reach a target corpus) — all on one page.
Core SIP formula
Future value of an annuity-due
P = monthly SIP · n = months · i = monthly return rate
The trailing × (1+i) factor is what makes this an annuity-due (deposit at the start of the period). Drop it and you get an ordinary annuity (end-of-period), which gives a slightly lower result. This calculator uses annuity-due, matching the standard Indian SIP convention where the first instalment is deployed immediately.
Monthly-rate convention
The single biggest source of inter-calculator disagreement
e.g. 12% p.a.: simple i = 1.000% · geometric i = 0.9489%
At 12% p.a. over 12 months on ₹1,000/month: the simple convention (annual ÷ 12) gives ₹12,809; the geometric convention gives ₹12,766 — a gap of ~₹43. Groww uses the geometric rate; most Indian tools and AMFI use simple. Neither is wrong — but the convention must be stated. This calculator defaults to annual ÷ 12 and lets you toggle.
Step-up SIP
Annual top-up aligned to salary hikes
s= annual step-up · each year's 12 instalments are compounded to maturity independently and summed
A 10% annual step-up means you invest ₹10,000 in year 1, ₹11,000 in year 2, ₹12,100 in year 3, and so on. Incumbents (including Groww) split this into a separate tool. This calculator integrates it on the same page.
Inflation-adjusted real value
What your corpus is worth in today's purchasing power
e.g. ₹99,91,479 nominal at 6% infl / 20 yr ≈ ₹31 lakh real
Inflation silently erodes purchasing power. Planning with only the nominal corpus overstates what your savings will actually buy. At 6% inflation over 20 years, every rupee today is worth only about ₹0.31 in nominal future terms.
₹10,000/month at 12% for 20 years, step by step
Monthly SIP ₹10,000; annual return 12%; tenure 20 years (n = 240 months); monthly rate i = 12% ÷ 12 = 1%.
- 1Monthly rate: i = 12% ÷ 12 = 1.00% per month (simple convention). Geometric alternative: (1.12)^(1/12) − 1 = 0.9489%.
- 2Growth factor: (1.01)^240 ≈ 10.8926.
- 3Future value (annuity-due): FV = 10,000 × [(10.8926 − 1) / 0.01] × 1.01 = 10,000 × 989.2553 × 1.01 ≈ ₹99,91,479.
- 4Total invested: ₹10,000 × 240 months = ₹24,00,000. Gains: ₹99,91,479 − ₹24,00,000 = ₹75,91,479.
- 5Inflation-adjusted real value (6% p.a.): ₹99,91,479 ÷ (1.06)^20 = ₹99,91,479 ÷ 3.2071 ≈ ₹31,16,000in today's purchasing power.
Convention note
Projection assumptions
SIP taxation: equity LTCG in brief
For equity mutual funds held more than 12 months, gains are Long-Term Capital Gains (LTCG). Under Budget-2024, equity LTCG is taxed at 12.5% on gains above ₹1.25 lakh per financial year — the first ₹1.25 lakh is exempt.
FIFO and per-instalment tax (simplification note)
Frequently asked questions
SIP returns are calculated using the future value of an annuity formula: FV = P × [((1+i)^n − 1) / i] × (1+i), where P is the monthly investment, i is the monthly return rate, and n is the number of months. Because contributions earn compound returns for different periods (the first instalment earns for all n months, the last for only one), the result is a geometric sum rather than simple multiplication. For example, ₹10,000/month at 12% p.a. over 20 years (n=240, i=1%) grows to approximately ₹99,91,479 on ₹24,00,000 invested — gains of roughly ₹76 lakh.
A step-up SIP (also called a top-up SIP) increases your monthly investment by a fixed percentage each year. For example, if you start at ₹10,000/month with a 10% annual step-up, you invest ₹10,000 in year 1, ₹11,000 in year 2, ₹12,100 in year 3, and so on. The mechanics: in year N the base amount becomes P × (1 + stepup)^(N−1), and each year's stream of contributions is compounded to maturity independently. A 10% step-up aligned to typical salary hikes can meaningfully increase the final corpus compared with a flat SIP of the same starting amount.
The nominal value is the raw rupee amount your SIP grows to — for instance ₹99,91,479 after 20 years. The real (inflation-adjusted) value strips out the effect of rising prices, showing what that sum is worth in today's purchasing power. The formula is: real value = nominal FV ÷ (1 + inflation rate)^years. At 6% assumed inflation over 20 years, ₹99,91,479 nominal ≈ ₹31 lakh in today's rupees. Planning with only the nominal figure overstates what your corpus will actually buy.
It depends on your return assumption and time horizon. At 12% p.a. (simple monthly rate, annuity-due): a 15-year tenure requires roughly ₹19,800/month; a 20-year tenure requires roughly ₹10,000/month; a 25-year tenure requires roughly ₹5,300/month. These figures use the goal/reverse mode: invert the FV formula to solve for P given target FV=₹1,00,00,000, i=1%, and n months. Longer horizons require dramatically less monthly outlay because compound returns do more of the work.
For equity mutual funds held for more than 12 months, gains are classified as Long-Term Capital Gains (LTCG). Under Budget-2024, equity LTCG is taxed at 12.5% on gains above ₹1.25 lakh per financial year — the first ₹1.25 lakh of annual gains are exempt. In practice each SIP instalment has its own purchase date and holding period (FIFO), so a single partial redemption may straddle the 12-month line and produce both LTCG and Short-Term Capital Gains (STCG, taxed at 20%). This calculator applies the simplified corpus-level LTCG view: it deducts 12.5% on total gains above ₹1.25 lakh, which gives a directional post-tax estimate rather than a precise per-lot tax computation.
Method, assumptions & references
Methodology note: FV formula FV = P·[((1+i)^n−1)/i]·(1+i) verified against Groww (annuity-due, geometric monthly rate). Monthly-rate convention cross-checked: Groww geometric (₹12,766) vs AMFI simple (₹12,809) on ₹1,000/mo, 12 months, 12% p.a. — ~₹43 gap documented. Headline example (₹10,000/mo, 12%, 20 yr → ₹99,91,479) computed from first principles and confirmed to engine-exact precision. Equity LTCG 12.5% / ₹1.25 lakh exemption per Budget-2024 (shared with Capital-Gains config). Returns and inflation are user inputs; no baked-in market data. All figures are projections, not investment advice; mutual fund returns are not guaranteed.
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How we calculate this
Reviewed by Reckonist Editorial · Last reviewed 13 June 2026. Figures follow the methods and sources set out in our editorial standards.
This is a projection based on the figures you enter and assumes a constant rate of return; real returns vary and are not guaranteed. It is general information, not personal investment or tax advice.
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