How is SIP return calculated?

Each monthly instalment grows at your expected rate of return for the remaining months in the SIP tenure. This calculator simulates each month individually rather than using a single simplified formula.

What is a step-up SIP?

A step-up (or top-up) SIP automatically increases your monthly instalment by a fixed percentage every year, usually matching your expected salary increment, which can meaningfully shorten the time needed to reach a goal.

Are SIP returns taxable?

For equity mutual funds, gains held over 1 year are Long-Term Capital Gains taxed at 12.5% above a ₹1.25 lakh annual exemption; gains under 1 year are Short-Term Capital Gains taxed at 20%. Debt fund gains are taxed at your slab rate.

Is 12% a realistic SIP return to expect?

Long-term equity mutual fund SIPs in India have historically delivered roughly 10-14% CAGR over 10+ year periods, though this varies by fund and market conditions and is never guaranteed.

InvestingInflation-Adjusted

SIP Return Calculator

Estimate what your monthly mutual fund SIP could grow into — with an optional step-up and inflation-adjusted real value.

Monthly SIP Amount

₹

₹500₹10,000/mo₹2L

= Ten Thousand Rupees per month

Return & Duration

Expected Annual Return12%

1% (debt)30% (aggressive)

Investment Duration15 yr

1 yr40 yr

Step-up SIP

Increase your instalment every year, e.g. with your annual increment

Annual step-up10%

Adjust for inflation

See your maturity value in today's purchasing power

Expected inflation6%

Maturity Value

₹50,45,760

After 15 years · Your money grew 2.80x

Total Invested₹10,000/mo₹18,00,000

Wealth GainedEstimated returns₹32,45,760

Growth

2.80x

Invested 36%

Wealth Gained 64%

Estimate only. Mutual fund returns are market-linked and not guaranteed. Past performance does not indicate future results — consult a financial advisor before investing.

How Your SIP Grows Over Time

Small, regular investments compound into meaningful wealth — here is the mechanism.

Every instalment compounds separately

Your first SIP instalment has the longest time to grow; your last has the shortest. This calculator simulates each month individually rather than assuming one average — a more accurate picture than a single lump-sum formula.

Step-up accelerates the curve

Increasing your SIP by even 10% a year — matching a typical salary hike — can grow your corpus dramatically more than a flat SIP, since the extra amount also gets years to compound.

Inflation quietly erodes value

A ₹1 crore goal 20 years from now needs to be much larger in nominal terms to have today's purchasing power. Toggle inflation adjustment above to plan against real, not nominal, numbers.

This is an illustration, not a promise

Mutual funds are subject to market risk. The return rate you enter is an assumption for planning purposes — actual fund performance will vary year to year and may be lower or higher than what you enter here. Diversify, review annually, and invest based on your own risk appetite and goals.