SIP Mutual Fund Calculator
See how much your monthly deposits will grow over time with compound interest returns.
Choose Your Investment
₹
₹500₹500,000
%
1%50%
Years
1 Years40 Years
Calculation Output
Total Amount Invested
₹600,000
Total Growth (Interest Earned)
₹561,695
+93.6% gain Total Maturity Value (Invested + Returns)
₹1,161,695
How Your Money Grows
Start Period:
| Period | Amount Invested | Total Growth | Gain % | Period Growth | Final Balance |
|---|---|---|---|---|---|
| 2026 | ₹30,000 | ₹1,068 | +3.6% | +₹1,068 | ₹31,068 |
| 2027 | ₹90,000 | ₹9,054 | +10.1% | +₹7,986 | ₹99,054 |
| 2028 | ₹150,000 | ₹25,664 | +17.1% | +₹16,610 | ₹175,664 |
| 2029 | ₹210,000 | ₹51,989 | +24.8% | +₹26,326 | ₹261,989 |
| 2030 | ₹270,000 | ₹89,262 | +33.1% | +₹37,272 | ₹359,262 |
| 2031 | ₹330,000 | ₹138,872 | +42.1% | +₹49,610 | ₹468,872 |
| 2032 | ₹390,000 | ₹202,384 | +51.9% | +₹63,511 | ₹592,384 |
| 2033 | ₹450,000 | ₹281,560 | +62.6% | +₹79,175 | ₹731,560 |
| 2034 | ₹510,000 | ₹378,386 | +74.2% | +₹96,826 | ₹888,386 |
| 2035 | ₹570,000 | ₹495,102 | +86.9% | +₹116,717 | ₹1,065,102 |
| 2036 | ₹600,000 | ₹561,695 | +93.6% | +₹66,594 | ₹1,161,695 |
Understanding SIP Calculations
A Systematic Investment Plan (SIP) allows you to invest small amounts periodically (monthly) into mutual funds to accumulate wealth over time using compounding interest.
Mathematical Formula
M = P \times \frac{(1 + i)^n - 1}{i} \times (1 + i)
Formula Explanation:
- M: Final Maturity Amount (Wealth accumulated)
- P: Monthly Deposit Amount
- i: Monthly Interest Rate (Annual Rate / 12 / 100)
- n: Total Number of Payments (Months)
Terms & Abbreviations
SIP Systematic Investment Plan - a disciplined method of periodic investing.
ROI Return on Investment - the annual percentage return expected from the fund.
Compounding The process where an asset’s earnings are reinvested to generate additional earnings over time.
p.a. Per Annum - yearly interest rates or periods.
Frequently Asked Questions
An SIP is a financial planning tool that lets you invest a fixed sum of money regularly in mutual funds. It helps inculcate a habit of disciplined savings and leverages Rupee Cost Averaging.
Rupee Cost Averaging is an investment strategy where you invest a fixed amount of money at regular intervals. This means you buy more units of a fund when prices are low and fewer units when prices are high, lowering your average cost per unit over time.
Yes, most mutual funds allow you to increase or decrease your SIP investment, pause the plan, or start an additional SIP under the same folder easily.
No, mutual fund investments are subject to market risks. SIP returns are linked to the performance of the underlying stocks or bonds in which the fund invests.
Compounding in SIP works on the "earnings on earnings" principle. Every month, your investment buys mutual fund units. The dividends or capital gains generated by those units are reinvested to buy more units. Over a long investment horizon (e.g. 10 to 20 years), this snowball effect exponentially increases your accumulated wealth.
Mutual fund gains are taxed based on the holding period of each individual installment. For Equity Mutual Funds, gains held for less than 1 year are taxed as Short-Term Capital Gains (STCG) at 20%. Gains held for more than 1 year are taxed as Long-Term Capital Gains (LTCG) at 12.5% (with exemptions up to ₹1.25 Lakhs per year). Debt fund returns are taxed according to your income tax slab.
A Step-Up or Top-Up SIP is a feature that automatically increases your monthly investment amount by a fixed percentage or amount every year (e.g. adding 10% more every year as your salary increases). Compounding a stepped-up SIP can help you reach your financial goals (like retirement or buying a house) twice as fast.