SIP Calculator — with Step-Up, Goal Mode & Inflation-Adjusted View
✓ Formula: standard SIP future value (AMFI-referenced)Updated 23 July 2026Fund category returns verified July 2026
Calculate the future value of a Systematic Investment Plan — with a step-up option that models yearly SIP hikes, a goal-based reverse mode, an inflation-adjusted (real) view, and a three-scenario comparison so you see the range of realistic outcomes, not a single fictitious number.
The 12% return every SIP calculator assumes is a fiction
Every SIP calculator on the internet — including this one — asks you for an "expected return" and defaults to 12%. That number gets plugged into a compound-interest formula and produces a crisp final corpus, usually a lakh or two shy of ₹1 crore. It looks reassuring. It is not what will happen.
What actually determines your final corpus, in the order these matter:
1. Sequence of returns. Two investors, both averaging 12% over 20 years, can end with corpuses that differ by 15-20% depending on when the good and bad years land. A 40% crash in year 18 hurts far more than a 40% crash in year 3, because the corpus is much larger by year 18. Nobody controls this. Everyone lives with it.
2. Expense ratio drag. A Direct Plan Nifty 50 index fund charges about 0.15% per year. A Regular Plan actively-managed large-cap fund charges 1.5-2%. That 1.5% gap compounds — over 20 years, on a ₹10,000 monthly SIP, it eats roughly ₹15-18 lakh of your final corpus. This is not a rounding error. It is the difference between retiring at 55 or 60.
3. Taxation. Post-July 2024 rules charge 12.5% LTCG on equity gains above ₹1.25 lakh per financial year, and 20% STCG on gains under 12 months. Your ₹1 crore corpus at retirement is not ₹1 crore in your hand — a chunk goes to tax at redemption. A calculator that shows ₹1 crore in the future value box and stops there is telling half the story.
4. Behaviour. AMFI data shows about 35-40% of Indian SIPs are discontinued within 5 years — usually in the middle of a market fall, which is exactly when they were working hardest. A stopped SIP is a broken plan, and it is by far the most common cause of retail investors underperforming the funds they invested in.
What this page does differently: the calculator below has step-up mode (matches salary hikes), goal mode (reverse-calculates monthly SIP for a target), three-scenario view (low/mid/high returns side-by-side) and an inflation-adjusted display. The sections below discuss actual fund category returns for July 2026, the sequence-of-returns problem, and the tax rules that apply when you actually redeem. Read them before you commit to a 20-year plan on a single-number assumption.
₹10,000
12%
20 yrs
₹10,000
10%
12%
20 yrs
₹1.00 Cr
12%
20 yrs
Estimated future value
₹99.91 L
Total invested
₹24.00 L
Wealth gained
₹75.91 L
Return multiple
4.16×
Effective XIRR
≈ 12.0%
Invested 24.0%Returns 76.0%
Inflation-adjusted (real) valueat 5.5% inflation≈ ₹34.24 L in today's rupees
What if returns are different from your assumption?
Real markets rarely deliver a constant number. Here's what your SIP looks like at three plausible outcomes:
Conservative
at 9% p.a.
₹67.29 L
Base case
at 12% p.a.
₹99.91 L
Optimistic
at 15% p.a.
₹1.52 Cr
Mutual fund category returns as of July 2026
Category-average returns from AMFI-registered mutual funds. These are the numbers to plug into the calculator above — not the marketing claims on any single fund's brochure. Past returns do not guarantee future performance, but they anchor a realistic expectation.
Category
3-yr CAGR
5-yr CAGR
10-yr CAGR
Risk band
Nifty 50 Index
14.8%
15.6%
13.5%
Moderately high
Large Cap (active)
14.2%
15.1%
13.8%
Moderately high
Flexi Cap
17.5%
17.9%
14.9%
Moderately high
Mid Cap
22.1%
21.6%
17.2%
High
Small Cap
24.9%
24.1%
19.6%
Very high
ELSS (tax-saver)
17.8%
17.4%
15.2%
Moderately high
Aggressive Hybrid
13.6%
14.2%
13.4%
Moderate
Corporate Bond (debt)
7.2%
7.4%
7.5%
Low
Read the small print: Category averages hide huge dispersion. Within Flexi Cap, the top quartile returned 18-20% over 10 years and the bottom quartile 10-11%. Fund selection matters as much as category selection. Also, all returns above are pre-tax and pre-expense-ratio-adjusted for the fund but do not account for the SIP investor's taxation on withdrawal. Verify current data on AMFI or Value Research before committing to any specific scheme.
The expense ratio problem — 1.5% costs 25% of your corpus
Every mutual fund charges an annual expense ratio, deducted from the fund's NAV before you see any return number. It sounds small — 1.5%, 2% — and it feels invisible because it never shows up on any statement. Over 20 years, it costs more than a bad market year.
Fund type
Expense ratio
Corpus after 20 yrs (₹10k/mo, 12% before expenses)
Loss vs Direct index
Direct — Nifty 50 index
0.15%
₹97.91 L
Baseline
Direct — Large cap active
0.60%
₹92.15 L
−₹5.76 L
Regular — Large cap active
1.75%
₹79.12 L
−₹18.79 L
Regular — Small cap active
2.00%
₹76.57 L
−₹21.34 L
Practical takeaway: Direct Plans over Regular Plans is a 25% raise on your final corpus — for exactly zero extra effort beyond doing the KYC yourself on Groww / Zerodha Coin / MF Central. If you specifically value distributor advice, that is fine, but the price of that advice is roughly ₹15-20 lakh on a 20-year SIP.
Sequence-of-returns risk — the same average, different outcomes
Two investors both average 12% return over 20 years. Investor A got their bad years early and their good years late. Investor B got their good years early. Their final corpuses are meaningfully different — even though the "average" they achieved is identical.
Take a ₹10,000 monthly SIP over 5 years (a simplified example so the pattern is visible):
Year
Return sequence A
Return sequence B
Year 1
−20%
+30%
Year 2
−10%
+20%
Year 3
+12%
+12%
Year 4
+20%
−10%
Year 5
+30%
−20%
Average
+6.4%
+6.4%
Final corpus
₹8.76 L
₹5.30 L
Investor A comes out about 65% ahead — despite the same arithmetic-mean return, the same monthly amount, the same duration. Why? Because A was buying units during the two down years, accumulating a lot of them at low prices, and those extra units then grew through the up years. B invested at peaks and rode down. Real-world sequences are less extreme, but the same mechanism operates.
What this means practically: for accumulators (people still investing), a market that falls in the early years is a gift, not a disaster. For retirees drawing down, the opposite is true. This is why financial planners recommend rebalancing towards debt in the last 3-5 years before goal — to protect against a bad-sequence year hitting a large corpus.
Three worked examples — the SIP maths, spelled out
Example 1 · Conservative · ₹5,000/month, 15 years, 10% return
P = 5,000 r = 10 ÷ 12 ÷ 100 = 0.008333 n = 15 × 12 = 180 months
FV = P × [((1+r)^n − 1) / r] × (1+r)
= 5,000 × [(1.008333)^180 − 1) / 0.008333] × 1.008333
= 5,000 × [(4.4539 − 1) / 0.008333] × 1.008333
= 5,000 × 414.47 × 1.008333
≈ ₹20,89,621
Total invested = 5,000 × 180 = ₹9,00,000
Wealth gained = 20,89,621 − 9,00,000 = ₹11,89,621
A ₹5,000/month conservative SIP for 15 years more than doubles your
invested money. This is the "starter" case — the minimum most young
professionals should aim for.
Example 2 · Standard · ₹10,000/month, 20 years, 12% return
P = 10,000 r = 12 ÷ 12 ÷ 100 = 0.01 n = 20 × 12 = 240 months
FV = 10,000 × [((1.01)^240 − 1) / 0.01] × 1.01
= 10,000 × [(10.8926 − 1) / 0.01] × 1.01
= 10,000 × 989.26 × 1.01
≈ ₹99,91,479
Total invested = 10,000 × 240 = ₹24,00,000
Wealth gained = 99,91,479 − 24,00,000 = ₹75,91,479
The classic "SIP to ₹1 crore" case. Note that in the last 5 years,
your corpus grew from about ₹51L to ₹99L — that ₹48L of growth in
5 years is the compounding cliff most people never see because they
stop before year 15.
Example 3 · Aggressive · ₹15,000/month with 10% annual step-up, 25 years, 12% return
Year 1: ₹15,000/month → Year 2: ₹16,500/month → ... → Year 25: ₹1,47,585/month
Total invested = ₹1,77,02,471
Final corpus = ₹6,41,33,192
Wealth gained = ₹4,64,30,721
Step-up mode is the closest a calculator gets to reality — because
your salary does grow ~8-12% per year for most of your career, and
"₹15,000/month" today should not stay "₹15,000/month" in year 15.
This scenario builds a genuinely retirement-viable corpus for
someone starting at 30, retiring at 55.
All three examples assume you actually complete the SIP without stopping. AMFI data suggests only about 40% of Indian SIPs cross the 5-year mark. The single biggest factor in whether you hit these numbers is not the fund you pick — it is whether you keep the mandate running through market falls.
SIP taxation after July 2024 — what your corpus becomes in your hand
The Union Budget of July 2024 changed capital gains taxation for mutual funds. These are the rules that apply when you redeem — the calculator above shows the pre-tax corpus, but the government sees things differently.
Fund type
Holding period
Tax rate
Annual exemption
Equity (STCG)
≤ 12 months
20%
—
Equity (LTCG)
> 12 months
12.5%
₹1.25 L per year
Debt funds
Any
Slab rate (up to 30%)
—
Hybrid ≥ 65% equity
Treated as equity
Same as equity
Same as equity
Gold funds / ETFs
> 24 months
12.5%
—
How this plays out for a SIP: every monthly instalment has its own holding period. If you started a SIP in July 2020 and redeem in July 2026, the first ~12 months of instalments (July 2020 to July 2025 vintage) are LTCG at 12.5%; the last 12 months of instalments (July 2025 to July 2026 vintage) are STCG at 20%. Redemption platforms use first-in-first-out (FIFO) by default, which is usually tax-optimal.
The ₹1.25 lakh exemption is per financial year, not per fund. If you redeem across multiple funds, add up all LTCG first, then apply the exemption once, then tax the rest. Plan large redemptions across two financial years to use two years of exemption.
The SIP future value formula
FV = P × [((1 + r)ⁿ − 1) / r] × (1 + r)
Where:
P = Monthly investment amount (₹)
r = Monthly return rate = Annual rate ÷ 12 ÷ 100
n = Number of instalments = Duration in years × 12
FV = Future Value (final corpus)
What the formula assumes (and what real markets do)
The formula is the future value of an annuity due — a series of equal payments at the start of each period, growing at a constant compound rate. It assumes: (1) every instalment goes in on time, (2) the return rate is exactly the same every month, (3) there are no fees, and (4) there are no taxes. Reality violates all four assumptions to some degree. The formula is a planning tool, not a prediction.
What return has SIP actually given historically in India? ▼
Between July 2006 and July 2026, a monthly SIP in the Nifty 50 index delivered an XIRR of about 13.4% before expenses. Actively managed flexi-cap funds averaged 14-15% but with wider dispersion; the top quartile did 16%+, the bottom quartile did 10-11%. The often-quoted "12% for equity SIPs" is a defensible planning number but it is neither the historical average nor a floor. Between 2008-2013, SIP XIRRs briefly dropped to 3-5% for many funds. Assume 10-12% for planning, celebrate anything above.
Should I stop my SIP when the market falls? ▼
Almost never. Falling markets are exactly when SIPs are working — you buy more units per instalment at lower prices, which is called rupee cost averaging. AMFI data shows about 35-40% of Indian SIPs get discontinued within 5 years, mostly during downturns, and this is the single biggest reason retail investors underperform the funds they invested in. If you must reduce exposure, step down the SIP amount rather than stopping it, so the discipline continues.
How is SIP taxed after the July 2024 rule change? ▼
For equity-oriented funds (including ELSS and equity-heavy hybrids), Short-Term Capital Gains (units sold within 12 months) are taxed at 20%, up from 15%. Long-Term Capital Gains (over 12 months) are taxed at 12.5%, up from 10%, with an annual exemption of ₹1.25 lakh (up from ₹1 lakh). For debt mutual funds, all gains are taxed at your income tax slab rate irrespective of holding period. Each SIP instalment has its own holding period, so a partial redemption may include both LTCG and STCG components.
Is SIP better than PPF? ▼
Different tools for different jobs. PPF gives a guaranteed post-tax return (currently 7.1%), a 15-year lock-in and an annual investment cap of ₹1.5 lakh. Equity SIP has no guarantee, no lock-in (except ELSS at 3 years), no cap, and historically returned 12-14% pre-tax over 15+ year periods. A typical portfolio uses both — PPF as the risk-free debt anchor, equity SIP as the growth engine. Skew towards PPF if you cannot tolerate any capital loss, skew towards SIP if you have a 10+ year horizon.
What is a step-up SIP and does it actually help? ▼
A step-up SIP increases your monthly instalment by a fixed percentage each year, typically 5-10%, to match salary increments. It matters a lot. A ₹10,000 monthly SIP for 25 years at 12% grows to about ₹1.9 crore. The same ₹10,000 SIP with a 10% annual step-up grows to about ₹4.28 crore — more than 2.25 times more corpus, from money you would have earned and could have invested anyway. Most fund houses now offer step-up SIP as a default option on the mandate.
Should I choose Direct Plan or Regular Plan? ▼
For an experienced investor with a clear goal, Direct Plan wins because there is no distributor commission built into the expense ratio. On an average large-cap fund, Direct Plan expense ratio is about 0.6% and Regular is about 1.7% — a difference of 1.1% per year, which compounds over 20 years to roughly 25% more corpus in Direct. If you rely on a distributor for advice, hand-holding during downturns, and tax help, the Regular Plan cost may be justified. Never pay for a distributor who only helps you with the initial paperwork.
What is the difference between XIRR and CAGR for SIPs? ▼
CAGR (Compound Annual Growth Rate) assumes a single lump-sum investment growing at a constant rate. It works for a one-time investment but is misleading for SIPs, where different instalments have different holding periods. XIRR (Extended Internal Rate of Return) is the correct measure for SIPs — it accounts for the exact date and amount of every instalment. A fund's marketing may quote CAGR to look better; ask your CAMS or KFinTech statement for the XIRR of your specific SIP series.
Which is better — SIP in an index fund or in an actively managed fund? ▼
For large-cap category over 10+ year windows, index funds have beaten most active funds — the SPIVA India report for 2024 showed about 74% of active large-cap funds underperformed their index. Beyond large-cap, active management still adds value: about 55% of flexi-cap and 60% of mid/small-cap active funds beat their benchmarks over 10 years. The pragmatic split for a long-term SIP is Nifty 50 index for large-cap exposure (lowest cost), and actively managed flexi/mid/small-cap for the growth kicker.
Can I miss a SIP instalment without penalty? ▼
Yes, mostly. If the ECS mandate bounces (insufficient balance), the AMC does not charge you but your bank charges a bounce fee (₹200-500). Three consecutive bounces typically pause the SIP mandate — you have to re-register. There is no direct impact on CIBIL, unlike missed loan EMIs. But a missed instalment is a missed unit-buying opportunity, and missing during a downturn is where you would have accumulated the most units. Keep an emergency reserve so this does not become a habit.
Should I invest a lump sum or SIP it over 12 months? ▼
Academic studies (Vanguard, 2012 and updated 2024) show that over long horizons, investing a lump sum immediately beats spreading it over 6-12 months about two-thirds of the time — because markets rise more often than they fall. But the two-thirds finding only holds if you would emotionally hold on through the inevitable drawdowns. For most retail investors, staggering a lump sum over 6-12 months (called STP, Systematic Transfer Plan) is worth the small statistical cost for the meaningful behavioural cushion.
How long does compounding really take to kick in? ▼
Meaningfully, around year 10. On a ₹10,000 monthly SIP at 12% return: after 10 years the corpus is about ₹23 lakh (of which ₹11 lakh is returns), after 15 years about ₹50 lakh (₹32 lakh returns), after 20 years about ₹1 crore (₹76 lakh returns), after 25 years about ₹1.9 crore (₹1.6 crore returns). The last five years typically add more to the corpus than the first fifteen. This is the compounding cliff — the reason "start early" matters mathematically, not just morally.
What is the SIP amount I need to reach ₹1 crore? ▼
At an assumed 12% annualised return, roughly: ₹43,000 per month for 10 years, ₹19,800 for 15 years, ₹10,000 for 20 years, ₹5,270 for 25 years, ₹2,833 for 30 years. This is the strongest argument for starting early — a 22-year-old needs ₹2,833 per month for a 30-year window; a 32-year-old needs almost 4× that for a 20-year window to hit the same ₹1 crore. Use the goal mode in the calculator above to test your specific timeline.
Are the returns shown in SIP calculators guaranteed? ▼
No. Every SIP calculator (including this one) assumes a constant annual return, which no real fund delivers — actual returns vary widely year to year. The final corpus depends critically on when the good and bad years land relative to your accumulation timeline, called sequence-of-returns risk. Two investors with the same 12% average return over 20 years can end up with corpuses that differ by 15-20% depending on the order the yearly returns arrived in.
What is the expense ratio and how does it affect my SIP? ▼
The expense ratio is the annual fee the AMC deducts from the fund's NAV. On a Direct Plan Nifty 50 index fund it is about 0.15%. On a Regular Plan actively managed large-cap fund it is 1.5-2.0%. Over 20 years, that 1.5-2% difference compounds into 20-30% less final corpus. On a ₹10,000 monthly SIP for 20 years, the difference between a 0.5% expense ratio and a 2.0% expense ratio is approximately ₹15-18 lakh in final corpus.
Can I withdraw partially from my SIP? ▼
Yes, unless you are in ELSS (which has a 3-year lock-in on each instalment individually). For all other equity and debt funds, you can redeem any number of units at any time. Each SIP instalment has its own holding period for tax purposes — the earliest instalments will be LTCG (over 12 months, 12.5% tax), the newest will be STCG (under 12 months, 20% tax). Redeem from the oldest units first (default FIFO on most platforms) to minimise the tax hit.
Important: All calculations use the standard SIP future value formula (future value of an annuity due) and are mathematically correct for the assumptions provided. Actual outcomes will differ because real fund returns vary year to year, expense ratios reduce the effective compound rate, taxes apply on redemption, and behavioural factors (stopping SIPs during downturns) affect completion rates. Fund category returns shown were verified against AMFI-published data as of 23 July 2026 and change continuously. This page is educational and does not constitute investment advice. Investments in mutual funds are subject to market risk; read all scheme related documents carefully. Consult a SEBI-registered investment advisor before large allocations.