SIP Calculator

A systematic investment plan puts a fixed rupee amount into a mutual fund every month, usually through an auto-debit. Indian households use SIPs to buy equity and hybrid funds without timing a lumpsum on a noisy day on the NSE. The math on this page is a future-value annuity at a constant expected return — a planning sketch, not a promise from SEBI or from any AMC.

The cash-flow question

People in Coimbatore, Indore and Kochi often start a SIP after the first salary credit because ₹10,000 a month is easier to defend than ₹12 lakh on one afternoon. The question they actually have is “what might this look like in ten years if markets compound around 12%?” IndiaKit answers that with the same future-value formula many AMCs print in their calculators, then reminds you that real NAVs jump around.

The maths on this page

Monthly SIP future value uses FV = M × [((1+i)^n − 1) / i] × (1+i), where M is the monthly amount, i is the monthly rate (annual expected return divided by 1200), and n is the number of instalments. For ₹10,000 at 12% a year for 10 years, n is 120 and i is 0.01.

That default run grows to about ₹23,23,391. You would have invested ₹12,00,000; the gap of about ₹11,23,391 is model “gains” at a flat 12%. Equity funds in India have delivered years far above and far below that line. Debt funds will not behave like 12%.

SIPs do not remove market risk. They only spread purchase dates. Exit loads, expense ratios, and tax on capital gains (see the capital-gains tool) still apply. Confirm scheme documents on the AMC site or on AMFI.

A Kochi software engineer’s ₹10,000 SIP

Nisha in Kochi sets a ₹10,000 monthly SIP into a diversified equity fund and wants a 10-year picture at 12% expected return. The page shows roughly ₹23.23 lakh at the end, against ₹12 lakh actually invested. She uses the same inputs her cousin in Hyderabad used, then immediately tests 8% and 15% so she is not married to a single glossy number.

What a bank still has to confirm

Expected return is an input you type, not a forecast. SEBI-registered statements, expense ratios, and actual NAVs override this model. Past rolling returns of Indian equity indices are not a floor for the next decade.

Common questions

Is a 12% annual return a SEBI-approved figure?

No. It is a common planning assumption for long equity SIPs, not a regulator-endorsed rate. You can type 8% or 14% here and the formula will recompute. Product documents on the AMC website are the legal source.

How is SIP tax different from FD interest?

Bank FD interest is usually taxed as income in the year it is credited. Equity mutual-fund gains are generally taxed when you redeem, under capital-gains rules that have changed in recent Budgets. Use the capital-gains page for a rate you type; confirm slabs on incometax.gov.in.

Does missing one SIP instalment break the compounding?

It only skips that month’s purchase. The units you already hold keep tracking the NAV. What you lose is that month’s contribution and its future growth, not the whole plan.