Quick answer
A SIP (Systematic Investment Plan) invests a fixed amount in a mutual fund every month. At a 12% annual return, ₹10,000 a month for 15 years grows to about ₹50.5 lakh — you invest ₹18 lakh and earn roughly ₹32.5 lakh in returns. The longer you stay invested, the more of your final value comes from compounding rather than your own money.
Key takeaways
- Time matters more than amount: doubling the period from 15 to 30 years makes the same SIP grow about 7 times larger.
- Returns are not guaranteed. Equity funds have delivered 10–14% over long periods, but any single year can be negative.
- A 10% yearly step-up can nearly double your final corpus — try the Step-up SIP Calculator.
- Gains on equity funds held over 12 months are taxed at 12.5% above ₹1.25 lakh a year.
How the SIP calculator works
Each monthly instalment buys mutual fund units and then compounds for the months it stays invested. The first instalment compounds for the whole period; the last one for just a month. The calculator adds up the future value of every instalment.
FV = P × [((1 + i)n − 1) ÷ i] × (1 + i)- P = monthly SIP amount
- i = monthly rate = annual return ÷ 12 ÷ 100
- n = number of monthly instalments
The extra (1 + i) assumes you invest at the start of each month, which is how most SIP calculators — including AMFI-registered platforms — show it.
Worked example
You invest ₹5,000 every month for 10 years and expect 12% a year.
- Monthly rate i = 12 ÷ 12 ÷ 100 = 0.01
- Instalments n = 10 × 12 = 120
- FV = 5,000 × [(1.01120 − 1) ÷ 0.01] × 1.01 = ₹11,61,695
You put in ₹6,00,000, so the estimated gain is ₹5,61,695.
SIP returns table: what your SIP becomes
| Monthly SIP | 5 yrs | 10 yrs | 15 yrs | 20 yrs | 25 yrs | 30 yrs |
|---|---|---|---|---|---|---|
| ₹1,000 | ₹82.5K | ₹2.32 L | ₹5.05 L | ₹9.99 L | ₹18.98 L | ₹35.3 L |
| ₹2,000 | ₹1.65 L | ₹4.65 L | ₹10.09 L | ₹19.98 L | ₹37.95 L | ₹70.6 L |
| ₹5,000 | ₹4.12 L | ₹11.62 L | ₹25.23 L | ₹49.96 L | ₹94.88 L | ₹1.76 Cr |
| ₹10,000 | ₹8.25 L | ₹23.23 L | ₹50.46 L | ₹99.91 L | ₹1.9 Cr | ₹3.53 Cr |
| ₹15,000 | ₹12.37 L | ₹34.85 L | ₹75.69 L | ₹1.5 Cr | ₹2.85 Cr | ₹5.29 Cr |
| ₹25,000 | ₹20.62 L | ₹58.08 L | ₹1.26 Cr | ₹2.5 Cr | ₹4.74 Cr | ₹8.82 Cr |
| ₹50,000 | ₹41.24 L | ₹1.16 Cr | ₹2.52 Cr | ₹5 Cr | ₹9.49 Cr | ₹17.65 Cr |
Click an amount for a detailed table at different return rates.
SIP vs lump sum
A lump sum puts all your money to work on day one, so in a steadily rising market it usually ends up higher. A SIP spreads your buying over time. You buy more units when prices are low (rupee cost averaging), which lowers regret and timing risk. For salaried investors with monthly income, a SIP is the practical default. Use the Lumpsum Calculator to compare.
Tax on SIP returns (FY 2026-27)
Each SIP instalment is treated as a separate purchase, so the 12-month holding period is counted per instalment.
- Equity funds, held more than 12 months: long-term capital gains taxed at 12.5% on gains above ₹1.25 lakh a year.
- Equity funds, held 12 months or less: short-term gains taxed at 20%.
- Debt funds (bought after 1 April 2023): gains taxed at your income slab rate.
Estimate your tax with the Capital Gains Tax Calculator.
Frequently asked questions
What is a good SIP return rate to assume?
For diversified equity funds, 10–12% a year is a reasonable long-term assumption. Use 7–8% for hybrid funds and 6–7% for debt funds. Past returns do not guarantee future performance, so check your plan at a lower rate too.
How much will ₹5,000 SIP give in 10 years?
At 12% a year, a ₹5,000 monthly SIP for 10 years grows to about ₹11,61,695. You invest ₹6 lakh in total.
How much SIP is needed to make ₹1 crore?
At 12% a year you need about ₹10,009 a month for 20 years, or ₹19,819 a month for 15 years. Use the Goal SIP Calculator for your own target.
Is SIP return guaranteed?
No. Mutual fund returns depend on the market. The calculator shows an estimate based on the fixed rate you enter. Real returns go up and down from year to year.
Can I stop or pause my SIP?
Yes. Most fund houses let you pause a SIP for 1–6 months or cancel it any time without a penalty. Money already invested stays invested. An exit load may apply only if you redeem units early.
Does this SIP calculator account for tax and expense ratio?
No. The result is before tax. Enter a return that is already net of the fund’s expense ratio. Direct plans have lower expense ratios than regular plans.
Sources & methodology
Formulas follow the standard methods used by Indian banks, fund houses and government schemes. Rates and tax rules were checked against official sources on 1 October 2026. Read our methodology.
This calculator gives an estimate for planning purposes. Actual returns, tax and eligibility depend on your situation and on product terms. It is not financial advice.