Investment Calculator · FY 2025-26

SIP Calculator —
Monthly SIP Returns & Maturity

Q: How is SIP return calculated?

SIP returns use the compound interest formula for periodic investments: M = P × [(1+i)^n − 1] / i × (1+i), where P = monthly investment, i = monthly rate (annual rate ÷ 12) and n = number of months. Example: ₹5,000/month at 12% for 10 years = ₹6.0L invested, maturity ≈ ₹11.6L. Actual returns vary with the market — the calculator shows an estimate at an assumed CAGR.

Q: What is a good SIP return rate to assume?

Historical category averages: large-cap equity 10–12% CAGR; mid-cap 12–15%; small-cap 14–18% (higher risk); balanced/hybrid 9–11%; debt 6–8%; ELSS 12–14%. For long-term planning (10+ years), 12% is a commonly used estimate for diversified equity mutual funds. Past performance does not guarantee future returns.

Q: What is the minimum SIP amount?

Most mutual funds allow a SIP from as low as ₹500 per month, and some from ₹100. There is no upper limit. Starting small and increasing (step-up SIP) over time is a common approach as income grows.

Q: What is the difference between SIP and lump sum investment?

A SIP invests a fixed amount monthly, averaging your cost across market highs and lows — ideal for salaried investors. A lump sum invests everything at once — better when markets are low but riskier if mistimed. For volatile equity markets, SIP generally suits retail investors better over long horizons.

Q: How much SIP is needed to get ₹1 crore?

At 12% CAGR: about ₹43,471/month for 10 years, ₹18,000/month for 15 years, ₹8,600/month for 20 years, or ₹4,700/month for 25 years. The earlier you start, the lower the monthly SIP required — a ₹5,000/month SIP at 12% for 30 years grows to roughly ₹1.76 crore.

Q: Does the calculator account for step-up (increasing) SIP?

This calculator assumes a fixed monthly amount for the whole tenure. A step-up SIP, where you raise the amount each year (say 10%), produces a larger corpus. Use the fixed calculator for a baseline, then plan step-ups separately with a financial advisor.

Q: Is SIP better than a recurring deposit (RD)?

An RD gives a fixed, guaranteed return (currently ~6–7%) with the interest taxed at your slab. An equity SIP targets a higher long-term return (~12%) but carries market risk and no guarantee. For long horizons and higher goals, equity SIPs have historically outperformed RDs; for short-term, capital-safe goals, RDs are safer.

Q: Is SIP tax-free?

No — a SIP is only a mode of investing; tax applies on gains at redemption. Equity fund LTCG (held 12+ months) is taxed at 12.5% above ₹1.25L/year, STCG (under 12 months) at 20%. Debt fund gains are taxed at your slab. ELSS SIPs additionally give an 80C deduction (old regime).

Q: How are equity SIP gains taxed in FY 2025-26?

Long-term capital gains on equity mutual funds (units held 12+ months) are taxed at 12.5% on gains above ₹1.25 lakh per year. Short-term gains (units held under 12 months) are taxed at 20%. Because each SIP instalment is a separate purchase, gains from different instalments are classified STCG or LTCG based on each instalment's own holding period.

Q: How is each SIP instalment taxed on redemption?

Every monthly instalment is treated as a separate investment with its own purchase date. When you redeem, units are matched FIFO (first-in-first-out): older instalments held 12+ months are LTCG, newer ones under 12 months are STCG, and each block is taxed at the applicable rate.

Move the sliders to estimate the maturity value of your monthly mutual fund SIP — total invested, estimated returns and final corpus, using the standard compound-interest SIP formula.

Equity & Debt Funds Compound Interest Formula Instant Corpus Estimate

Use the calculator SIP returns table

12%Assumed equity CAGR

₹500Minimum monthly SIP

12.5%Equity LTCG rate

₹1.25LLTCG exemption/yr

Quick Answer

A SIP (Systematic Investment Plan) calculator estimates the maturity value of your monthly mutual fund investments using compound interest. Enter your monthly SIP amount, expected annual return (CAGR) and tenure to instantly see the total invested, estimated returns and final corpus.

₹5,000 · 10 yrs @12% ₹11.6L

₹10,000 · 20 yrs @12% ₹99.9L

To reach ₹1 crore (15 yrs) ₹18,000/mo

Interactive

SIP Calculator

Drag the sliders below to model your SIP. Results update instantly — no data leaves your browser.

Monthly SIP Amount (₹)

₹5,000

₹500₹2L

Expected Annual Return (%)

12%

4%30%

Investment Period (Years)

10 Years

1 yr40 yrs

Adjust sliders to estimate
SIP corpus at maturity.
Assumed: monthly compounding

Invested Amount

₹6.0L

Estimated Returns

₹5.6L

Total Value

₹11.6L

Invested Returns

What CAGR should I assume?

12% is the commonly used long-term estimate for diversified equity mutual funds in India. Use ~8% for debt funds, ~10–12% for large-cap, ~12–15% for mid-cap. Higher returns come with higher risk — past returns never guarantee future ones.

The formula

How SIP Returns Are Calculated

A monthly SIP is a series of periodic investments, so its future value uses the compound interest formula for annuities:

M = P × [ (1 + i)ⁿ − 1 ] ÷ i × (1 + i)

M = maturity value (final corpus)
P = monthly SIP amount
i = monthly rate = annual return ÷ 12
n = number of instalments = years × 12

Example: ₹5,000/month at 12% for 10 years = ₹6.0L invested, growing to a corpus of about ₹11.6L — roughly ₹5.6L of estimated returns from compounding.

Estimates, not guarantees

The calculator assumes a constant CAGR and monthly compounding. Real mutual fund returns fluctuate with the market, so actual maturity value can be higher or lower. Treat the output as a planning estimate, not a promised return.

Quick reference

SIP Returns Table @ 12% CAGR

Monthly SIP	10 Years	15 Years	20 Years	25 Years
₹1,000	₹2.32L	₹5.02L	₹9.99L	₹18.97L
₹3,000	₹6.96L	₹15.05L	₹29.96L	₹56.9L
₹5,000	₹11.6L	₹25.1L	₹49.9L	₹94.9L
₹10,000	₹23.2L	₹50.1L	₹99.9L	₹1.89Cr
₹25,000	₹58.0L	₹1.25Cr	₹2.50Cr	₹4.74Cr
₹50,000	₹1.16Cr	₹2.51Cr	₹5.0Cr	₹9.47Cr

Estimated maturity value at 12% assumed CAGR with monthly compounding. Actual returns vary.

How Much SIP to Reach ₹1 Crore?

Investment Period	At 10% CAGR	At 12% CAGR	At 15% CAGR
10 years	₹48,500/mo	₹43,471/mo	₹36,000/mo
15 years	₹22,000/mo	₹18,000/mo	₹13,000/mo
20 years	₹12,000/mo	₹8,600/mo	₹5,500/mo
25 years	₹7,200/mo	₹4,700/mo	₹2,700/mo
30 years	₹4,600/mo	₹2,800/mo	₹1,500/mo

Starting early drastically cuts the monthly SIP needed — the power of compounding.

FY 2025-26

SIP Taxation in India

A SIP is only a mode of investing — tax applies on the gains at redemption. Each instalment is treated as a separate purchase, so gains are split into STCG or LTCG by how long each instalment was held.

Fund Type	Holding Period	Tax Rate	Exemption
Equity MF / ETF	< 12 months (STCG)	20%	None
Equity MF / ETF	≥ 12 months (LTCG)	12.5%	₹1.25L/year
ELSS (80C)	Lock-in 3 yrs (LTCG)	12.5%	₹1.25L + 80C ₹1.5L
Debt MF / Hybrid <65% eq.	Any	As per slab	None
Hybrid (equity ≥65%)	≥ 12 months	12.5%	₹1.25L/year

Equity LTCG above ₹1.25L is taxed at 12.5%; STCG at 20% (rates effective 23 Jul 2024, applicable FY 2025-26). ELSS 80C deduction is available under the old regime only.

ELSS SIPs save tax under 80C

An ELSS SIP qualifies for the ₹1.5 lakh deduction under Section 80C (old regime) with the shortest lock-in (3 years) among 80C options — while still being an equity mutual fund taxed at 12.5% LTCG.

Government sourcesIncome Tax Dept: incometax.gov.in · Capital gains rates: Finance (No. 2) Act 2024, effective 23 July 2024 · ELSS deduction: Section 80C, Income-tax Act (old regime)

Frequently Asked Questions

Basics

How is SIP return calculated?

SIP returns use the compound interest formula for periodic investments: M = P × [(1+i)^n − 1] / i × (1+i), where P = monthly investment, i = monthly rate (annual rate ÷ 12) and n = number of months. Example: ₹5,000/month at 12% for 10 years = ₹6.0L invested, maturity ≈ ₹11.6L. Actual returns vary with the market — the calculator shows an estimate at an assumed CAGR.

What is a good SIP return rate to assume?

Historical category averages: large-cap equity 10–12% CAGR; mid-cap 12–15%; small-cap 14–18% (higher risk); balanced/hybrid 9–11%; debt 6–8%; ELSS 12–14%. For long-term planning (10+ years), 12% is a commonly used estimate for diversified equity mutual funds. Past performance does not guarantee future returns.

What is the minimum SIP amount?

Most mutual funds allow a SIP from as low as ₹500 per month, and some from ₹100. There is no upper limit. Starting small and increasing (step-up SIP) over time is a common approach as income grows.

What is the difference between SIP and lump sum investment?

A SIP invests a fixed amount monthly, averaging your cost across market highs and lows — ideal for salaried investors. A lump sum invests everything at once — better when markets are low but riskier if mistimed. For volatile equity markets, SIP generally suits retail investors better over long horizons.

Planning

How much SIP is needed to get ₹1 crore?

At 12% CAGR: about ₹43,471/month for 10 years, ₹18,000/month for 15 years, ₹8,600/month for 20 years, or ₹4,700/month for 25 years. The earlier you start, the lower the monthly SIP required — a ₹5,000/month SIP at 12% for 30 years grows to roughly ₹1.76 crore.

Does the calculator account for step-up (increasing) SIP?

This calculator assumes a fixed monthly amount for the whole tenure. A step-up SIP, where you raise the amount each year (say 10%), produces a larger corpus. Use the fixed calculator for a baseline, then plan step-ups separately with a financial advisor.

Is SIP better than a recurring deposit (RD)?

An RD gives a fixed, guaranteed return (currently ~6–7%) with the interest taxed at your slab. An equity SIP targets a higher long-term return (~12%) but carries market risk and no guarantee. For long horizons and higher goals, equity SIPs have historically outperformed RDs; for short-term, capital-safe goals, RDs are safer.

Tax

Is SIP tax-free?

No — a SIP is only a mode of investing; tax applies on gains at redemption. Equity fund LTCG (held 12+ months) is taxed at 12.5% above ₹1.25L/year, STCG (under 12 months) at 20%. Debt fund gains are taxed at your slab. ELSS SIPs additionally give an 80C deduction (old regime).

How are equity SIP gains taxed in FY 2025-26?

Long-term capital gains on equity mutual funds (units held 12+ months) are taxed at 12.5% on gains above ₹1.25 lakh per year. Short-term gains (units held under 12 months) are taxed at 20%. Because each SIP instalment is a separate purchase, gains from different instalments are classified STCG or LTCG based on each instalment's own holding period.

How is each SIP instalment taxed on redemption?

Every monthly instalment is treated as a separate investment with its own purchase date. When you redeem, units are matched FIFO (first-in-first-out): older instalments held 12+ months are LTCG, newer ones under 12 months are STCG, and each block is taxed at the applicable rate.

Do ELSS SIPs save tax?

Yes. ELSS (Equity Linked Savings Scheme) SIPs qualify for the ₹1.5 lakh deduction under Section 80C in the old regime, with a 3-year lock-in on each instalment. Note: each SIP instalment has its own 3-year lock-in from its purchase date.

Is there TDS on SIP redemptions for residents?

For resident investors, mutual funds do not deduct TDS on capital gains from redemption — you report and pay the tax yourself while filing your income tax return. TDS applies mainly to non-residents. Dividends (IDCW) above ₹5,000/year do attract TDS.

Which regime should I choose if I do ELSS SIPs?

The 80C deduction for ELSS is available only in the old tax regime. If your total 80C investments and other deductions are large, the old regime may be beneficial; if not, the new regime's lower slab rates may win. Compare both with an income tax calculator for your numbers.

Done-for-you

Related TaxClue Services

Income Tax Return FilingReport SIP capital gains correctly (STCG/LTCG) and file your ITR online.Explore →ELSS Tax-Saving GuidanceUse ELSS SIPs to claim the ₹1.5L 80C deduction with a 3-year lock-in.Explore →Mutual Fund Tax AdvisoryUnderstand equity vs debt fund taxation and plan redemptions tax-efficiently.Explore →Capital Gains SupportCompute STCG/LTCG on mutual fund redemptions with the right exemptions.Explore →

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