How is SIP return calculated?

SIP returns are calculated using the future value of an annuity formula: M = P × ({[1 + r]^n - 1} / r) × (1 + r), where P is the monthly investment amount, r is the monthly interest rate (annual rate / 12 / 100), and n is the total number of months. This gives the maturity value assuming a constant rate of return.

What is the minimum SIP amount?

Most mutual fund houses in India allow SIPs starting at ₹500 per month. Several funds and platforms have further reduced this to ₹100 per month. There is no upper limit on SIP investments.

Can I stop SIP anytime?

Yes, open-ended mutual fund SIPs can be paused or stopped at any time without any penalty. Unlike Fixed Deposits, there is no lock-in or premature withdrawal penalty. You can also redeem your accumulated units (subject to exit load if applicable) whenever needed.

What is the best SIP duration?

The longer the SIP duration, the more powerful the compounding effect. A minimum of 5 years is recommended to ride out market volatility, while 10–15 years is considered ideal for substantial wealth creation. Historically, equity SIPs running for 15+ years have rarely generated negative returns.

SIP Calculator

Q: Is SIP better than FD?

SIP in equity mutual funds has historically delivered 10–15% annualised returns over the long term, significantly higher than Fixed Deposits which typically offer 6–7% p.a. However, SIP returns are market-linked and not guaranteed, unlike FDs which offer assured returns. SIP is better for long-term wealth creation while FD suits capital protection goals.

Calculate your SIP maturity amount, estimated returns, and see year-by-year wealth growth — instantly and for free.

Investment Parameters

Monthly Investment (₹)

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Expected Annual Return (%)

Investment Duration

Investment Summary

Invested Amount

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Estimated Returns

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Total Maturity Value

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Year	Amount Invested	Estimated Returns	Maturity Value

How to Use This SIP Calculator

Our SIP Calculator is designed to be simple and intuitive. Here is how to get started:

Enter Monthly Investment: Use the slider or type the amount you plan to invest every month — from ₹500 to ₹1,00,000.
Set Expected Annual Return: Enter the expected annualised rate of return from your mutual fund. Historical equity fund SIPs have returned 10–15% over the long term.
Choose Duration: Select the investment period in Years (1–40) or Months (12–480) using the toggle. A longer duration dramatically increases your corpus due to compounding.

All results update live as you adjust any input — no need to click a button. The results are estimates based on the assumed constant rate of return entered by you; actual mutual fund returns may vary.

You can also explore related tools like the EMI Calculator, FD Calculator, and CAGR Calculator to plan your complete financial portfolio.

SIP Formula Explained

The maturity value of a SIP investment is calculated using the future value of an ordinary annuity formula, adjusted for the beginning-of-period investment:

M = P × ({[1 + r]ⁿ - 1} / r) × (1 + r)

M: Maturity Value (Future Value)

P: Monthly SIP investment amount (₹)

r: Monthly rate = Annual Rate / 12 / 100

n: Total number of months (tenure)

For example, a monthly SIP of ₹5,000 at 12% p.a. for 10 years (120 months) gives a maturity value of approximately ₹11.6 lakhs on a total investment of only ₹6 lakhs — nearly doubling your money through the power of compounding.

Year-by-Year Growth

The growth table above shows the cumulative investment, returns, and total corpus value at the end of each year of your SIP tenure. This helps you visualise how your wealth accelerates over time — the magic of compounding becomes most visible in the later years. Toggle the table open to see the detailed breakdown.

Frequently Asked Questions

SIP stands for Systematic Investment Plan. It allows you to invest a fixed amount at regular intervals (usually monthly) in a mutual fund scheme. SIP harnesses the power of rupee cost averaging — you buy more units when prices are low and fewer when prices are high — reducing the overall average cost of investment over time and smoothing out market volatility.

SIP returns are calculated using the future value of an annuity formula: M = P × ({[1 + r]ⁿ - 1} / r) × (1 + r), where P is the monthly investment, r is the monthly rate (annual rate ÷ 12 ÷ 100), and n is the total months. This formula assumes monthly compounding at a constant rate. Actual mutual fund returns vary based on market performance and are not guaranteed.

SIP in equity mutual funds has historically delivered 10–15% annualised returns over the long term, significantly higher than Fixed Deposits which typically offer 6–7% p.a. However, SIP returns are market-linked and not guaranteed, unlike FDs which offer assured returns. SIP is better for long-term wealth creation, while FD is suited for capital protection and short-term goals. Consult a financial advisor for personalised advice.

Most mutual fund houses in India allow SIPs starting at ₹500 per month. Several funds and fintech platforms have further reduced this threshold to as low as ₹100 per month, making it accessible to everyone. There is no upper limit on how much you can invest via SIP.

Yes. Open-ended mutual fund SIPs can be paused or stopped at any time without any penalty. Unlike Fixed Deposits or certain insurance-linked products, there is no lock-in period for most equity or debt mutual fund SIPs. You can also redeem your accumulated units at any time, though exit loads may apply if redeemed within a specific period (usually 1 year for equity funds).

The longer the duration, the more powerful the compounding effect. A minimum of 5 years is recommended to ride out market volatility cycles. A duration of 10–15 years is considered ideal for building substantial wealth. Historically, equity mutual fund SIPs running for 15 or more years have rarely generated negative inflation-adjusted returns. Starting early — even with a small amount — is far more effective than investing a larger amount later.