Tool
SIP Calculator
See exactly what your monthly SIP adds up to — total invested, returns earned, and final corpus. Includes step-up and inflation adjustment.
How a SIP compounds your money
Every month you invest a fixed amount. That amount earns returns, and the next month you invest again — on top of last month's growing pile. This is compounding: your returns start earning their own returns.
After 10 years of ₹5,000/month at 12%, you've put in ₹6 lakhs. But your corpus is ₹11.6 lakhs — nearly double. The extra ₹5.6 lakhs came entirely from compounding, not from your pocket.
The formula
The future value of a monthly SIP is calculated as:
Example: ₹5,000/month at 12%/year for 10 years →
r = 12% ÷ 12 = 1% per month (0.01), n = 120 months
M = 5000 × [(1.01)120 − 1] ÷ 0.01 × 1.01 = ₹11.6 lakhs
What the step-up option does
With a 10% annual step-up, your ₹5,000/month becomes ₹5,500 in year two, ₹6,050 in year three, and so on. Over 10 years, this can add ₹3–5 lakhs to your corpus compared to a flat SIP — and it's designed to match your annual salary increments.
Frequently Asked Questions
How much SIP per month to reach ₹1 crore?
At 12% returns: ₹10,500/month for 20 years, or ₹6,000/month for 25 years. Starting earlier dramatically reduces how much you need to invest each month — that's compounding doing the work.
Is SIP better than lump sum investing?
For most salaried earners, SIP is the only realistic option — you don't have a lump sum sitting idle. If you do receive a large windfall during a market crash, investing it all at once can outperform. In normal or rising markets, SIP and lump sum give similar results over the long run.
Direct vs regular mutual fund — does it matter?
Yes, significantly. A 1% annual cost difference on ₹5,000/month over 20 years costs approximately ₹8–9 lakhs in forgone returns. Use Zerodha Coin, Groww, or Kuvera to invest in direct plans.
What return rate should I assume?
The Nifty 50 has delivered ~13% CAGR since inception. For planning purposes, use 10–11% to be conservative — some decades underperform, and you shouldn't be surprised by a bad 5-year stretch.