SIP Calculator 2026 — Plan Your Mutual Fund Investment
Calculate how your monthly SIP grows over time with compounding. See the impact of expense ratio on your returns and compare different investment scenarios.
Last updated: 23 February 2026, 5:00 PM IST
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Read our in-depth guide covering strategies, worked examples, and common mistakes.
Read: SIP GuideData Sources
- AMFI — Association of Mutual Funds in India (2026) — www.amfiindia.com
- SEBI — Mutual Fund Regulations (2026) — www.sebi.gov.in
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Important: This calculator provides estimates based on the inputs and assumptions you provide. Results are mathematical projections, not financial advice or recommendations. Actual outcomes will vary based on market conditions, policy changes, individual circumstances, and factors not captured by this tool. Verify all figures independently and consult qualified professionals before making financial decisions.
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How Does a SIP Work in Mutual Funds?
A SIP invests a fixed amount (typically ₹500–₹1 lakh) every month into a mutual fund at the prevailing NAV, buying more units when prices fall and fewer when they rise — a mechanism called rupee cost averaging that reduces the risk of entering at a market peak. Over 10–15 year horizons, equity SIPs in India have delivered 12–14% CAGR according to AMFI data, though returns vary by fund and market cycle. If your income grows annually, a step-up SIP increases contributions each year to accelerate wealth creation.
How does the expense ratio eat into SIP returns over time?
A 1% higher expense ratio can reduce your 20-year SIP corpus by ₹12 lakh or more. Every mutual fund charges an annual fee — typically 0.1–0.5% for index funds and 1–2.5% for actively managed regular plans — deducted daily from the NAV. On a ₹10,000/month SIP over 20 years at 12% gross return, switching from a 1.5% regular plan to a 0.2% direct plan saves roughly ₹12 lakh. SEBI's TER circular caps expense ratios based on fund AUM. To understand how your tax regime affects overall savings, try the tax regime comparator.
SIP vs Lumpsum — When to Choose Which
SIP suits salaried investors who want disciplined, market-timing-free investing; lumpsum works better for windfalls when the Nifty PE is below 20. Research on Indian equity markets shows lumpsum beats SIP roughly 65% of the time over 10-year windows because markets trend upward more often than they correct. If you receive a bonus or inheritance, a lumpsum investment may outperform. For a detailed side-by-side comparison, see our SIP vs Lumpsum comparison.
What happens to my SIP if I miss a monthly instalment?
Missing a SIP instalment triggers no penalty or charges — your mandate skips that month and resumes when funds are available. However, if three consecutive instalments are missed, some AMCs may cancel the mandate. You can restart by registering a new SIP. Consistency matters more than amount — maintaining regularity maximises rupee cost averaging. For guaranteed, risk-free savings alongside your SIP, consider parking a portion in a PPF account for the debt portion of your portfolio.
SIP Taxation in India — LTCG and STCG Rules
Each SIP instalment is a separate purchase for capital gains tax: equity units held over 12 months get LTCG tax at 12.5% on gains above ₹1.25 lakh/year (exempt below that), while units held under 12 months attract 20% STCG — as per the Income Tax Act post-Budget 2024 changes. The FIFO (First-In-First-Out) method applies on redemption. For a post-tax comparison with bank deposits, read our SIP vs RD comparison or the FD vs Mutual Fund comparison. Our complete SIP calculator guide walks through all variables.
Methodology — How This SIP Calculator Works
This calculator uses the standard future value of annuity formula: FV = P × ((1+r)^n − 1) / r × (1+r), where P is the monthly SIP amount, r is the monthly return rate (annual rate ÷ 12, minus expense ratio ÷ 12), and n is the total number of months. Expense ratio is deducted from the gross return before compounding — matching how mutual funds report NAV after fees. LTCG tax is computed at 12.5% on equity gains above ₹1.25 lakh per financial year, per Union Budget 2024 rules. All default rates (12% equity CAGR, 0.5% expense ratio) are based on historical Nifty 50 TRI data from NSE Indices and AMFI fund data. This calculator does not account for exit loads, STT, or stamp duty on mutual fund purchases. For detailed methodology across all calculators, see our About Our Data page.
Worked Calculation Examples
Example 1: Regular Monthly SIP for 15 Years
Priya, a 28-year-old software engineer in Bangalore, starts a SIP of ₹10,000/month in an equity mutual fund with 12% expected CAGR and 0.5% expense ratio. She plans to stay invested for 15 years to build a house down payment.
₹10,000 × 180 months
FV = P × ((1+r)^n − 1) / r × (1+r), r = 11.5%/12
| Year | Invested | Returns | Total Value |
|---|---|---|---|
| 5 | ₹6,00,000 | ₹2,05,000 | ₹8,05,000 |
| 10 | ₹12,00,000 | ₹9,94,000 | ₹21,94,000 |
| 15 | ₹18,00,000 | ₹26,64,000 | ₹44,64,000 |
Priya’s ₹18 lakh investment grows to ₹44.64 lakh — a 1.48x multiplication purely from compounding at net 11.5% return.
Note: Returns assumed at 12% CAGR with 0.5% expense ratio (net 11.5%). Actual returns vary based on fund selection and market conditions.
Example 2: Small SIP Growing Into a Large Corpus Over 25 Years
Rahul, a 25-year-old teacher in Jaipur, starts with just ₹3,000/month. He cannot invest more now, but he stays disciplined for 25 years. He picks an index fund with a 0.2% expense ratio.
₹3,000 × 300 months
FV = P × ((1+r)^n − 1) / r × (1+r), r = 11.8%/12
| Year | Invested | Returns | Total Value |
|---|---|---|---|
| 5 | ₹1,80,000 | ₹62,000 | ₹2,42,000 |
| 10 | ₹3,60,000 | ₹3,09,000 | ₹6,69,000 |
| 15 | ₹5,40,000 | ₹8,38,000 | ₹13,78,000 |
| 25 | ₹9,00,000 | ₹47,49,000 | ₹56,49,000 |
Rahul’s modest ₹3,000/month SIP turns into ₹56.49 lakh over 25 years — a 6.3x multiplication. Time is the most powerful variable in compounding.
Note: Returns assumed at 12% CAGR with 0.2% expense ratio (net 11.8%). Index funds typically have the lowest expense ratios.
Example 3: High-Value SIP with LTCG Tax Impact
Meera, a 35-year-old consultant in Mumbai, invests ₹50,000/month in a diversified equity fund with 1% expense ratio. She wants to know her after-tax corpus after 10 years.
₹50,000 × 120 months
FV at net 11% return
12.5% × (₹48,48,000 − ₹1,25,000)
| Year | Invested | Returns | Total Value |
|---|---|---|---|
| 3 | ₹18,00,000 | ₹3,32,000 | ₹21,32,000 |
| 5 | ₹30,00,000 | ₹10,40,000 | ₹40,40,000 |
| 10 | ₹60,00,000 | ₹48,48,000 | ₹1,08,48,000 |
Meera’s ₹60 lakh investment crosses the ₹1 crore mark in 10 years. After LTCG tax, she retains ₹1.03 crore — the expense ratio costs her roughly ₹7 lakh compared to a direct plan.
Note: LTCG tax applies at 12.5% on equity gains above ₹1.25 lakh per financial year. Actual LTCG depends on when units are redeemed.
Frequently Asked Questions
What is a Systematic Investment Plan (SIP)?
A SIP invests a fixed amount (₹500+) every month in a mutual fund at the prevailing NAV. You buy more units when prices fall and fewer when they rise — called rupee cost averaging — which reduces the risk of bad market timing and enforces discipline.
What returns can I expect from SIP investments?
Equity SIPs in India have historically delivered 12–15% CAGR over 10+ years; debt fund SIPs deliver 6–8%. Past performance doesn't guarantee future returns, but rupee cost averaging smooths out volatility over time, making SIP the most practical route for salaried investors.
What is the minimum amount to start a SIP?
Most mutual funds allow SIPs from ₹500/month; some AMCs start at ₹100. There is no upper limit. You can increase your amount annually with a step-up SIP as your income grows.
How does expense ratio affect SIP returns?
Expense ratio is the annual fund management fee deducted daily from NAV. On a ₹10,000/month SIP over 20 years at 12% gross return, a 1.5% expense ratio costs roughly ₹12 lakh more than a 0.2% direct plan. Always prefer direct plans over regular plans.
Is SIP better than lump sum investment?
SIP suits salaried investors wanting discipline; lumpsum wins when markets are undervalued. Research shows lumpsum beats SIP about 65% of the time over 10-year windows because markets trend upward, but SIP reduces behavioral risk and is easier to maintain.
How is SIP taxed in India?
Each SIP instalment is a separate purchase. Equity units held >12 months: LTCG at 12.5% on gains above ₹1.25 lakh/year. Units held <12 months: STCG at 20%. Debt fund SIPs are taxed at your income slab rate regardless of holding period.
What is XIRR and why is it important for SIP investors?
XIRR (Extended Internal Rate of Return) measures true SIP returns by accounting for the date and amount of each cash flow. Unlike CAGR (which suits lumpsum), XIRR handles multiple investments at different times. Check XIRR on your AMC app or AMFI CAS statement.
Can NRIs invest in SIPs in India?
Yes, through an NRE or NRO bank account with KYC-compliant folio. Some AMCs restrict US/Canada investors due to FATCA. NRIs face 20% TDS on STCG and 12.5% on LTCG above ₹1.25 lakh. NRE investments are freely repatriable.
Is there any guarantee on SIP investments?
No. SIP in mutual funds is market-linked with no capital guarantee. SEBI does not permit mutual funds to guarantee returns. ULIPs offer death benefits but charge 2–4% vs 0.1–1% for direct mutual funds, resulting in lower net returns.
What is the difference between SIP and Recurring Deposit (RD)?
RD offers guaranteed 6–7.5% returns but post-tax yield is only 4–5% for the 30% bracket. Equity SIPs have short-term volatility but historically deliver 12–15% CAGR over 10+ years. SIP offers significantly higher long-term wealth creation.
Can I choose weekly or daily SIP instead of monthly?
Yes, many AMCs offer daily, weekly, and fortnightly options. However, research shows negligible return difference across frequencies. Monthly SIPs align with salary cycles and simplify tax filing since each instalment is a separate purchase for capital gains.
How much SIP do I need for ₹1 crore in 15 years?
At 12% expected return, you need approximately ₹20,000/month flat SIP for 15 years. With a 10% annual step-up starting at ₹12,000/month, you reach ₹1 crore in the same period with a lower initial commitment.
What is STP and when should I use it instead of SIP?
A Systematic Transfer Plan (STP) moves a lump sum from a debt fund to an equity fund in fixed instalments. Use STP when you receive a windfall but want rupee cost averaging benefits. It earns debt-fund returns on the un-transferred balance.
Does stopping a SIP trigger any exit load?
Stopping the SIP mandate incurs no penalty. However, redeeming units held less than 1 year may attract exit load (typically 1%) depending on the fund scheme. The SIP mandate and unit redemption are separate actions.
What is the best date to start a SIP?
Research shows the SIP date (1st, 5th, 15th, etc.) has negligible impact on long-term returns. Choose any date that aligns with your salary credit. Consistency over years matters far more than the specific date within a month.
How do I track my SIP performance?
Use the AMFI Consolidated Account Statement (CAS) at camsonline.com or karvy.com for a single view of all folios. Check XIRR (not absolute returns) to measure true performance across all your SIP instalments.
Related Resources
Calculators
- Step-Up SIP — SIP with annual step-up, inflation adjustment, expense ratio impact & LTCG tax calculation.
- Tax Regime — Old vs New tax regime — see which saves more with all deductions: 80C, 80D, HRA, NPS & more.
Comparisons
- SIP vs Lumpsum — Compare SIP vs lumpsum investing with valuation analysis, rupee cost averaging, and STP guidance.
- FD vs Mutual Fund — Compare fixed deposits vs mutual funds across returns, risk, tax efficiency, liquidity, and inflation protection.
- SIP vs RD — Compare SIP in mutual funds vs recurring deposit across returns, risk, tax efficiency, and withdrawal flexibility.
Disclaimer
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully. Past performance is not indicative of future results. This calculator is for informational and educational purposes only and does not constitute investment advice. Consult a SEBI-registered financial advisor before making investment decisions. RupayWise is not a registered financial advisor or distributor under SEBI.