SIP Calculator
Calculate how your monthly SIP investment in mutual funds will grow over time. See the power of compounding.
📖 Step-Up SIP, 매년 늘리면 복리효과가 얼마나 커지나 가이드 보기
SIP Calculator (Systematic Investment Plan)
SIP is a method of investing a fixed amount in mutual funds at regular intervals (usually monthly). It leverages rupee-cost averaging and compound interest to build long-term wealth. Enter your monthly investment, expected return rate, and duration to see your estimated corpus.
SIP vs lump sum — which is better?
SIP is better for salaried investors because it averages out market volatility through rupee-cost averaging — you buy more units when prices are low and fewer when prices are high. Lump sum works best when markets are near a low. Many investors combine both strategies.
How much should I invest monthly in SIP?
A common rule of thumb: invest at least 20% of monthly income. Example: ₹10,000/month at 12% for 20 years grows to approximately ₹99.9 lakh. Starting early is more important than the amount — compounding rewards time in the market above all else.
Is SIP income taxable?
Equity SIP gains held over 1 year are taxed at 10% LTCG on gains above ₹1 lakh. Debt fund gains are taxed at your income slab rate. ELSS (tax-saving) funds offer a ₹1.5 lakh deduction under Section 80C of the Income Tax Act.
What types of funds can I invest in through SIP?
You can set up SIPs in equity funds (higher risk, higher long-term return), debt funds (stable, lower return), hybrid funds, and ELSS (tax-saving). Equity SIPs are recommended for goals 5+ years away; debt SIPs for shorter-term goals.
How accurate is this calculator?
This calculator assumes a constant rate of return for simplicity. Actual mutual fund returns fluctuate with market conditions. Results are estimates for planning purposes — not a guarantee. Consult a qualified financial advisor before making investment decisions.
What is a Step-Up SIP?
A Step-Up SIP increases the monthly contribution by a fixed percentage each year. For example, starting at $100/month and increasing by 10% annually, the contribution reaches $240/month after 10 years. Aligning increases with income growth maximizes the compound effect.
What happens if I pause my SIP midway?
Pausing a SIP stops new contributions but the invested amount continues to grow in the market. Compounding on existing units keeps working. You can resume at any time, and no penalty fee is charged during the pause period.
Should I account for inflation when calculating SIP returns?
Yes, for long-term planning use the real rate of return: nominal return minus inflation. If your fund earns 8% annually and inflation is 3%, the real return is approximately 4.9%. Inflation-adjusted projections give you a realistic picture of future purchasing power.