Free SIP Calculator Online
SIP corpus with step-up mode, XIRR & 3-scenario simulation
The SIP Calculator shows how a fixed monthly investment in a mutual fund grows over time using compound growth. Enter your SIP amount, expected annual return, and investment horizon to see your estimated corpus — plus a step-up option to model annual increases in your SIP amount aligned to income growth.
Frequently Asked Questions
About the SIP Calculator
A Systematic Investment Plan (SIP) allows investors to invest a fixed amount at regular intervals — typically monthly — into a mutual fund scheme. Returns are not guaranteed (equity markets fluctuate), but long-term historical data from Indian equity markets shows that disciplined SIPs in diversified equity funds have generated 10–14% CAGR over 15-year periods.
The power of a SIP comes from two forces: rupee cost averaging (buying more units when markets fall) and compounding (every unit you hold grows in value over time). This calculator models both. The step-up feature — increasing your SIP by 10% every year — is particularly powerful because it mirrors salary growth and dramatically accelerates corpus accumulation without requiring large lump-sum investments.
The XIRR (Extended Internal Rate of Return) shown in results is the most accurate way to measure SIP returns because it accounts for the different time horizons of each monthly installment. A 12% XIRR on a 20-year SIP is genuinely excellent long-term performance — it means every rupee you invested earned 12% per year adjusted for timing.
Formula Used
FV = P × ({[1 + i]^n - 1} / i) × (1 + i)
Where FV is Future Value, P is SIP amount, i is monthly return rate, and n is number of months.
When Should You Use This?
Use this to plan for retirement, children's education, or wealth building via mutual funds or index funds over a 5 to 30 year horizon.
What Does The Result Mean?
The results project your estimated future wealth. It separates your "Total Invested" from the "Wealth Gained" to show the power of long-term equity investing.
Example Calculation
Example Scenario
📥 Inputs
- To understand how the SIP Calculator processes your data, consider a typical use case.
- When you enter your specific values into the input fields, the calculator applies the underlying formula (FV = P × ({[1 + i]^n - 1} / i) × (1 + i) Where FV is Future Value, P is SIP amount, i is monthly return rate, and n is number of months.) step-by-step.
🔢 Calculation Steps
- 1The inputs are first validated to ensure they fall within acceptable ranges.
- 2The values are then substituted into the standard formula.
- 3Finally, the calculation is executed, instantly displaying the precise output on your screen.
Limitations of this Calculator
- Market returns are never linear. A 12% expected return means it might drop 20% one year and rise 30% the next.
- Does not account for exit loads or capital gains taxes upon withdrawal.
How to Use the SIP Calculator
- 1Enter your monthly SIP investment amount.
- 2Input the expected annual return rate (10-12% is historically common for equity funds).
- 3Enter the time horizon in years.
- 4Toggle the Step-Up option if you plan to increase your SIP amount annually.
Tips & Best Practices
- A step-up SIP automatically increases your monthly investment by a certain percentage every year, aligning with your income growth.
- Extended Internal Rate of Return (XIRR) is a method used to calculate returns on investments where there are multiple transactions happening at different times.
- Double-check your input units before calculating — using the wrong unit is the most common source of errors.
- Bookmark this SIP Calculator for quick access next time you need it.
- Use the share button to send your results to a colleague or save them for later reference.
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⚠️ Financial Disclaimer: Results are estimates based on the inputs you provide and standard mathematical formulas. They do not constitute financial advice. Please consult a certified financial advisor, accountant, or tax professional before making any investment, loan, or financial decisions.