Enter your SIP details - type a value or drag the slider
Maturity amount
₹23.23 L
your total corpus
Total invested
₹12.00 L
what you put in
Wealth gained
₹11.23 L
93.6% profit
🏆
You'll become a crorepati in 21 years!
At ₹10,000/month with 12% returns, your SIP will cross ₹1 crore in approximately 21 years. Increase your tenure or SIP amount to reach it sooner.
Corpus growth - year by year
CorpusInvested
Yr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
SIP or lumpsum - which is better for you?
Enter your numbers and get a live side-by-side comparison
What return rate should you use?
Based on 10-year median CAGR data for Indian mutual funds. Use the conservative or realistic column for goal planning - never the optimistic column.
| Fund category | Conservative | Realistic | Optimistic | Historical reference |
|---|
| Nifty 50 index fund | 10% | 12% | 14% | ~13.5% (since inception) |
| Large-cap active fund | 10% | 12% | 14% | 11–13% (10-yr median) |
| Large & mid-cap fund | 11% | 13% | 15% | 12–14% (10-yr median) |
| Multi-cap / flexi-cap | 11% | 13% | 16% | 13–15% (10-yr median) |
| Mid-cap equity fund | 12% | 15% | 18% | 15–18% (10-yr median) |
| Small-cap equity fund | 13% | 16% | 22% | 16–22% (10-yr median) |
| ELSS (tax-saving equity) | 11% | 13% | 16% | 12–15% (10-yr median) |
| Hybrid balanced fund | 9% | 11% | 13% | 10–12% (10-yr median) |
| Debt / short duration | 6% | 7% | 8% | 6.5–7.5% (recent 3-yr) |
| Liquid fund | 6% | 7% | 7.5% | 6.5–7% (recent 3-yr) |
Historical returns are not a guarantee of future performance. Equity markets can deliver negative returns in individual years. Long-term averages (10+ years) are far more stable than short-term returns. Always plan with conservative numbers.
SIP maturity formula
M = P × {[(1 + r)ⁿ − 1] ÷ r} × (1 + r)
M = Maturity amount | P = Monthly SIP amount
r = Monthly rate = Annual rate ÷ 12 ÷ 100
n = Total months = Years × 12
Example: ₹10,000/month at 12% for 10 years
r = 12 ÷ 12 ÷ 100 = 0.01 | n = 10 × 12 = 120
M = ₹10,000 × [(1.01¹²⁰ − 1) ÷ 0.01] × 1.01 = ₹23,23,391
SIP Calculator 2026 - Complete Guide to Mutual Fund SIP in India
A Systematic Investment Plan (SIP) is a disciplined method of investing a fixed amount in a mutual fund at regular intervals - most commonly monthly. Instead of trying to time the market with a lump sum, SIP lets you invest across different market levels, automatically buying more units when prices are low and fewer when they are high. This mechanism - known as rupee-cost averaging - combined with the compounding of returns over time, is why SIP is the most popular investment method in India for retail investors.
India's SIP culture has grown dramatically. Over 9 crore active SIP accounts exist as of 2026, with monthly SIP inflows exceeding ₹21,000 crore - a 5x increase from a decade ago. The average SIP tenure has also lengthened as investors have experienced full market cycles and stayed invested through them.
This guide covers everything that matters for a SIP investor: how the compounding works, how much SIP you need based on your salary and target, the transformative impact of step-up SIPs, how to choose the right fund, how SIPs are taxed in 2026, and the detailed rupee-cost averaging mechanics that make SIPs outperform lump-sum investing in volatile markets.
The power of compounding - why starting early changes everything
The most important variable in any SIP is not the return rate - it is time. The compounding of returns means that money invested early grows exponentially, while money invested late grows only marginally. The difference between starting a SIP at 25 versus 35 is not 10 years of extra returns; it is often 3–4x more final wealth from the same monthly investment.
Example: Priya (starts at 25) and Rahul (starts at 35). Both invest ₹10,000/month at 12% annual return until age 60.
Priya - starts at 25
₹6.35 Cr
Invests for 35 years
Total deposits: ₹42L | Returns: ₹5.93 Cr
Rahul - starts at 35
₹1.89 Cr
Invests for 25 years
Total deposits: ₹30L | Returns: ₹1.59 Cr
The difference
Priya invested only ₹12 lakh more than Rahul (120 extra monthly payments of ₹10,000) but ends up with ₹4.46 crore more. Every ₹1 invested at 25 does the work of ₹3.35 invested at 35 - because it has 10 extra years to compound. Time is your most powerful asset. It cannot be bought later.
How much monthly SIP do you need to reach ₹1 crore?
The table below shows the monthly SIP amount required to accumulate exactly ₹1 crore, at 12% annual return, for different age groups and target timelines. Note how the required SIP drops dramatically as the horizon extends.
| Current age | Target: ₹1 Cr by | Return rate | Monthly SIP needed | Total deposited | Returns earned |
|---|
| 22 years | Age 45 (23 yrs) | 12% | ₹8,619 | ₹23.8L | ₹76.2L |
| 25 years | Age 45 (20 yrs) | 12% | ₹10,011 | ₹24.0L | ₹76.0L |
| 25 years | Age 55 (30 yrs) | 12% | ₹2,947 | ₹10.6L | ₹89.4L |
| 30 years | Age 50 (20 yrs) | 12% | ₹10,011 | ₹24.0L | ₹76.0L |
| 30 years | Age 60 (30 yrs) | 12% | ₹2,947 | ₹10.6L | ₹89.4L |
| 35 years | Age 55 (20 yrs) | 12% | ₹10,011 | ₹24.0L | ₹76.0L |
| 35 years | Age 60 (25 yrs) | 12% | ₹5,322 | ₹16.0L | ₹84.0L |
| 40 years | Age 60 (20 yrs) | 12% | ₹10,011 | ₹24.0L | ₹76.0L |
| 40 years | Age 60 (20 yrs) | 15% | ₹6,679 | ₹16.0L | ₹84.0L |
Key insight
Starting a SIP 10 years earlier reduces the required monthly amount by 75% for the same ₹1 crore goal. But notice the returns column: in a 30-year SIP, you deposit only ₹10.6L but earn ₹89.4L in returns - 8.4x your investment. In a 10-year SIP, the ratio is much lower. The longer you stay invested, the harder your money works for you.
How much SIP should I start based on my salary?
A general rule of thumb: invest at least 15–20% of your net take-home salary in SIPs for long-term goals. The table below gives practical starting ranges for different income levels. Note that these are starting points - use the step-up SIP feature to increase your amount by 10% every year without straining your budget.
| Gross monthly salary | Approx take-home | Suggested SIP range | Recommended investment goal | % of take-home |
|---|
| ₹25,000 | ₹21,000 | ₹2,000–₹3,000 | Emergency fund first, then SIP | 10–14% |
| ₹40,000 | ₹34,000 | ₹3,500–₹5,000 | Start SIP + term insurance | 10–15% |
| ₹60,000 | ₹51,000 | ₹6,000–₹10,000 | SIP + ELSS for 80C | 12–20% |
| ₹80,000 | ₹67,000 | ₹10,000–₹15,000 | SIP + PPF + health insurance | 15–22% |
| ₹1,00,000 | ₹83,000 | ₹15,000–₹20,000 | SIP + ELSS + PPF + NPS | 18–24% |
| ₹1,50,000 | ₹1,22,000 | ₹25,000–₹35,000 | Multi-fund portfolio + ELSS | 20–29% |
| ₹2,00,000 | ₹1,58,000 | ₹35,000–₹50,000 | Aggressive equity + real estate goal | 22–32% |
Step-up SIP - the most underused wealth multiplier in India
A step-up (or top-up) SIP automatically increases your monthly investment by a fixed percentage every year. Most investors set a 10% annual step-up, aligned with their expected annual salary increment. The impact on final corpus is transformative - often doubling or tripling the wealth from the same starting SIP amount.
The intuition: in early years, the step-up feels small - going from ₹10,000 to ₹11,000 per month. But in later years, when your wealth base is large, the step-up amounts are large too, and they have time to compound further. A 10% annual step-up on a ₹10,000 base means by year 10, you're investing ₹23,579/month, and by year 20, ₹61,159/month - all from a standing instruction set once.
| Base monthly SIP | Annual step-up | Corpus after 10 yrs | Corpus after 20 yrs | Corpus after 30 yrs |
|---|
| ₹5,000 | 0% (flat) | ₹11.6L | ₹49.9L | ₹1.76 Cr |
| ₹5,000 | 5%/year | ₹14.3L | ₹72.8L | ₹3.07 Cr |
| ₹5,000 | 10%/year | ₹17.6L | ₹1.06 Cr | ₹5.40 Cr |
| ₹10,000 | 0% (flat) | ₹23.2L | ₹99.9L | ₹3.53 Cr |
| ₹10,000 | 5%/year | ₹28.6L | ₹1.46 Cr | ₹6.15 Cr |
| ₹10,000 | 10%/year | ₹35.2L | ₹2.12 Cr | ₹10.80 Cr |
| ₹15,000 | 10%/year | ₹52.8L | ₹3.18 Cr | ₹16.19 Cr |
All figures at 12% expected annual return. Step-up SIP available on all major platforms: Zerodha Coin, Groww, Kuvera, Paytm Money, and directly through AMC apps.
Rupee-cost averaging - why SIP automatically buys more when markets fall
When you invest a fixed amount monthly, the number of units you receive varies with the fund's NAV (Net Asset Value / price per unit). In months when the NAV is low - during market corrections - your ₹10,000 buys more units. In months when the NAV is high, it buys fewer units. Over time, this automatic behaviour brings your average cost per unit below the average NAV - a mathematical advantage that lump-sum investors do not get.
| Month | NAV (price/unit) | SIP amount invested | Units purchased |
|---|
| Jan | ₹100 | ₹10,000 | 100.00 |
| Feb | ₹80 📉 | ₹10,000 | 125.00 |
| Mar | ₹60 📉 | ₹10,000 | 166.67 |
| Apr | ₹90 | ₹10,000 | 111.11 |
| May | ₹110 | ₹10,000 | 90.91 |
| Jun | ₹100 | ₹10,000 | 100.00 |
| Total | ₹60,000 | 693.69 units |
Average purchase price: ₹60,000 ÷ 693.69 = ₹86.49 per unit - even though the NAV started and ended at ₹100 and the simple average NAV was ₹90. SIP automatically bought the most units (166.67) when prices were lowest (₹60), lowering the effective cost base. At the closing NAV of ₹100, the portfolio value is ₹69,369 - a 15.6% gain on ₹60,000 invested, despite markets being at the same level they started.
The practical implication: never stop your SIP during a market crash. That is precisely when rupee-cost averaging works hardest for you - every instalment buys more units at depressed prices, dramatically reducing your average cost. Investors who continued SIPs through the 2020 COVID crash (Nifty fell 38%) and the 2022 correction (Nifty fell 17%) saw their average cost per unit drop significantly, and recovered to profits far faster than those who paused.
SIP taxation in India 2026 - complete guide
SIP gains are taxed as capital gains, and the applicable rate depends entirely on the type of mutual fund and how long each instalment has been held. Budget 2024 changed the LTCG and STCG rates for equity funds - the current rules are as follows:
| Fund type / gain type | Tax rate | Threshold / exemption | Practical example |
|---|
| Equity fund - LTCG (held 12+ months) | 12.5% | Gains above ₹1.25L/yr exempt | ₹2L gain → tax on ₹75K = ₹9,375 |
| Equity fund - STCG (held < 12 months) | 20% | No threshold; full gain taxed | ₹50K gain → ₹10,000 tax |
| ELSS - LTCG (after 3-yr lock-in) | 12.5% | Gains above ₹1.25L/yr exempt | Same as equity LTCG |
| Debt fund (all holding periods) | Slab rate | Added to total income | 30% bracket: ₹50K gain → ₹15,600 tax |
| Hybrid fund (>65% equity) | Equity rules apply | Same as equity LTCG/STCG | Most balanced advantage funds qualify |
| Dividend (all fund types) | Slab rate | Added to total income; TDS 10% if >₹5,000 | Avoid dividend option for equity funds |
Critical SIP-specific tax point
In a SIP, every monthly instalment has its own individual 12-month holding period clock. When you redeem a SIP after, say, 18 months of investing, the first 6 months of instalments qualify as LTCG (held 12+ months), but the last 12 months of instalments are still STCG (held under 12 months). For large SIP corpora, this can create a meaningful tax difference. Plan your redemption date so that most instalments have completed 12 months. LTCG harvesting - redeeming up to ₹1.25L of gains per year tax-free and reinvesting - is a useful annual tax optimisation strategy for SIP portfolios above ₹50 lakh.
SIP vs lumpsum - when does each strategy win?
The SIP vs lumpsum debate is often framed incorrectly. In a mathematically perfect world with steadily rising markets, a lumpsum invested upfront always beats a SIP - because money invested earlier compounds longer. But in the real world of volatile markets and unpredictable timing, SIP consistently delivers better risk-adjusted outcomes for most retail investors.
✓ Choose SIP when...
You have monthly salary income - invest as you earn
Markets are near all-time highs or direction is unclear
You are investing for 7+ years
You are a first-time or risk-conscious investor
You want automated, emotion-free investing
You have no large lumpsum available
You want to build the habit of investing consistently
✓ Choose lumpsum when...
You have a large bonus, inheritance, or maturity proceeds
Market has just corrected 20–30% from its recent peak
You are investing in debt or liquid mutual funds
You have a short investment horizon (under 2 years)
You are very experienced and can handle volatility
Bull market is clearly in its very early stages (P/E < 18)
You want to invest windfall gains immediately without delay
How to choose the right mutual fund for your SIP - a practical guide
Choosing the wrong fund is the second most common mistake SIP investors make (the first is stopping during market downturns). Here is a practical framework:
1
Match the fund category to your goal timeline
For goals 10+ years away: mid-cap or flexi-cap funds (higher risk, higher expected return). For goals 7–10 years away: large-cap or large & mid-cap funds (moderate risk). For goals 3–7 years away: hybrid balanced funds. For goals under 3 years: debt/liquid funds or short-duration funds. Never invest in small-cap equity funds for goals under 7 years - they can lose 50–60% of value in market crashes and take years to recover.
2
Look at 5-year and 10-year CAGR, not 1-year returns
A fund that delivered 40% returns last year is not a good SIP fund - it may have taken concentrated bets that worked once. Look for consistent 5-year and 10-year CAGR above the benchmark (Nifty 500 for equity funds), not just top performance in a single year. Funds that consistently beat their benchmark by 1–2% annually compound to 30–50% more wealth over 20 years.
3
Check the expense ratio - it compounds against you
The expense ratio is the annual fee charged by the fund, deducted from returns. An index fund with 0.1% expense ratio vs an active fund with 1.5% expense ratio differs by 1.4% annually. Over 20 years at 12% gross return, this reduces your corpus by approximately 20%. For index funds, choose those with expense ratios below 0.2%. For active large-cap funds, avoid those above 1.0%. Direct plans (via fund houses or platforms like Zerodha Coin, Kuvera) have lower expense ratios than regular plans sold through distributors.
4
Prefer direct plans over regular plans
Direct mutual fund plans cut out the distributor commission - typically 0.5–1% annually. Over a 20-year SIP of ₹10,000/month, choosing direct over regular plans can add ₹20–30 lakh to your final corpus. All major platforms now offer direct plans: Zerodha Coin, Groww, Kuvera, Paytm Money, and the fund house's own website or app. If your financial advisor puts you in regular plans without providing ongoing advice in return, you are paying an avoidable annual fee.
5
Start simple: the two-fund SIP portfolio
For most first-time investors, a two-fund portfolio is optimal: (1) Nifty 50 or Nifty 500 index fund (UTI, SBI, or HDFC, expense ratio below 0.15%) - for stability and broad market exposure; (2) one mid-cap or flexi-cap active fund from a reputed AMC - for additional growth. Add an ELSS fund if you have ₹1.5L of Section 80C capacity to utilise. This covers the full risk-return spectrum without the complexity of managing 8–10 funds, which most retail investors cannot do effectively.
Frequently asked questions - SIP investing in India 2026
What is SIP and how does it actually work in India?▼
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund at regular intervals - most commonly monthly. Each month on your SIP date, your bank auto-debits the amount and your fund house purchases mutual fund units at the day's NAV (Net Asset Value). Over months and years, you accumulate units at various price levels. When you redeem, the total value is your accumulated units multiplied by the current NAV. The power of SIP comes from two sources: (1) rupee-cost averaging - you buy more units when the NAV is low and fewer when it's high, reducing your average cost per unit over time; and (2) the compounding of returns on the entire accumulated corpus. India now has over 9 crore active SIP accounts with monthly inflows above ₹21,000 crore as of 2026.
How much SIP do I need to invest every month to reach ₹1 crore?▼
At 12% expected annual return: to reach ₹1 crore in 10 years, you need ₹43,471/month; in 15 years, ₹20,017/month; in 20 years, ₹10,011/month; in 25 years, ₹5,322/month; in 30 years, just ₹2,947/month. This illustrates the exponential power of time - starting 10 years earlier reduces your required monthly SIP by more than 75% for the same ₹1 crore goal. If you increase your return assumption to 15% (achievable with mid/small-cap funds over long periods), the 20-year SIP drops to ₹6,679/month. Use the calculator above with your exact target corpus and timeline for a personalised figure.
What is a step-up SIP and how dramatically does it increase your corpus?▼
A step-up (or top-up) SIP automatically increases your monthly investment by a fixed percentage every year - typically 10%, aligned with annual salary increments. The difference in final corpus is dramatic. Starting a ₹10,000/month SIP at 12%: a flat SIP for 20 years gives ₹99.9 lakh; with a 5% annual step-up, it gives ₹1.46 crore; with a 10% step-up, it gives ₹2.12 crore - more than double. Over 30 years, the 10% step-up version gives ₹10.80 crore vs ₹3.53 crore for a flat SIP. Most major mutual fund platforms (Zerodha Coin, Groww, Kuvera, fund house apps) support step-up SIP configuration at account setup. It is one of the most underused wealth-building features in India.
How is SIP taxed in India in 2026?▼
Taxation depends on the fund type and how long each instalment is held. For equity mutual funds (including ELSS): gains on units held for more than 12 months are Long-Term Capital Gains (LTCG), taxed at 12.5% on the portion above ₹1.25 lakh per financial year (revised in Budget 2024 from 10% and ₹1L). Gains on units held under 12 months are Short-Term Capital Gains (STCG), taxed at 20% (revised from 15% in Budget 2024). For debt mutual funds: all gains regardless of holding period are added to your total income and taxed at your applicable slab rate - there is no separate LTCG benefit for debt funds after the 2023 amendment. Critical SIP-specific point: each monthly SIP instalment starts its own individual 12-month holding period clock. When you redeem a SIP after, say, 2 years, only the instalments paid 12+ months ago qualify as LTCG; the recent instalments are STCG. Plan your redemption timing accordingly.
Is SIP better than FD for long-term investing?▼
For goals 7 years or more away, equity SIP has historically delivered significantly better after-tax returns than FDs. FDs currently offer 6.5–7.5% gross; after 30% income tax and 4% cess, the effective net return is 4.6–5.2%. An equity SIP at 12% with 12.5% LTCG tax (above ₹1.25L/year) gives an effective net return of approximately 10.5–11%. Over 20 years, ₹10,000/month in an FD at 7% (post-tax) grows to roughly ₹52 lakh; the same in an equity SIP at 12% grows to ₹99.9 lakh - nearly double. Over 30 years, the gap is 3–4x. For goals under 3 years, FDs are safer because equity markets can be negative over short periods. For goals between 3–7 years, a hybrid or balanced advantage fund via SIP is a reasonable middle ground.
What is ELSS and how does it work as a tax-saving SIP?▼
ELSS (Equity Linked Savings Scheme) is an equity mutual fund that qualifies for Section 80C tax deduction up to ₹1.5 lakh per year. For someone in the 30% tax bracket, this saves ₹46,800 annually in income tax (₹45,000 + 4% cess). Investing in ELSS via monthly SIP makes it a tax-saving SIP. Key rules: each SIP instalment is locked in for 3 years from its investment date - so in a running ELSS SIP, some instalments are always locked while others are free. Returns are market-linked (equity), historically 10–15% CAGR over 7+ years. At redemption, gains are taxed as equity LTCG at 12.5% above ₹1.25L/year. ELSS has the shortest lock-in of all 80C instruments: 3 years vs PPF (15 years), NSC (5 years), and tax-saver FD (5 years). Important: if you have opted for the new income tax regime, you cannot claim the 80C deduction, so ELSS's tax advantage disappears - though it still earns equity returns.
How do I choose the right mutual fund for my SIP?▼
For first-time investors: start with a simple 2-fund portfolio - one Nifty 50 or Nifty 500 index fund (for stability and diversification) and one mid-cap or flexi-cap fund (for growth). For tax saving, add an ELSS fund for your ₹1.5L Section 80C allocation. Key criteria for fund selection: (1) 5-year and 10-year CAGR (not just 1-year returns - short-term performance is mostly luck); (2) expense ratio - lower is strictly better; index funds should be below 0.2%, active funds below 1.5%; (3) AUM stability - avoid very small funds (under ₹500 crore for equity) or very large small-cap funds (over ₹20,000 crore, which face deployment challenges); (4) fund house reputation and processes. Never chase the top-performing fund of the last 1 year - performance chasing is the single most common mistake that destroys SIP returns.
Can I stop, pause, or switch my SIP anytime?▼
Yes, with important exceptions. For regular equity and debt SIPs: you can stop, pause, or modify at any time with no penalty. Submit the request via your fund house's app, SEBI-registered platform (Zerodha Coin, Groww, Kuvera, Paytm Money), or the AMC's website or branch. Most platforms process stop requests within 1–2 working days; the next SIP instalment after that is not debited. Many fund houses offer a 'SIP pause' for 1–3 months if you're going through a temporary income gap. For ELSS SIPs: you can stop future instalments at any time, but already-invested instalments remain locked for 3 years from each instalment's date. You cannot withdraw ELSS units before the 3-year lock-in, even after stopping the SIP. Units from old instalments that have completed their 3-year lock-in can be redeemed independently.
What is rupee-cost averaging and why does it matter for SIP investors?▼
Rupee-cost averaging (RCA) is the automatic benefit you get from investing a fixed amount at regular intervals. Because you invest a fixed rupee amount (not a fixed number of units), you automatically buy more units when the NAV (price) is low and fewer units when the NAV is high. Over time, this brings your average cost per unit below the average NAV across the same period. Example: If you invest ₹10,000/month over 6 months when the NAV goes from ₹100 → ₹80 → ₹60 → ₹90 → ₹110 → ₹100, you accumulate 693.69 units, paying an average of ₹86.49 per unit - significantly lower than the average NAV of ₹90 across that period. This is why SIP investors are often better off during volatile or falling markets: they're accumulating units at cheaper prices, setting up for stronger gains when markets recover. The best thing you can do during a market crash is continue your SIP without interruption.
What is the minimum SIP amount and how much should I invest based on my salary?▼
Most mutual funds allow SIPs starting at ₹100–₹500 per month, though some mid/small-cap funds require a minimum of ₹1,000. There is no maximum limit. As a general rule for salaried investors: invest at least 15–20% of your net take-home salary in SIPs for long-term goals. For a ₹50,000/month take-home, this means ₹7,500–₹10,000 in SIPs. Start with whatever amount is sustainable - a ₹1,000 SIP maintained consistently for 20 years will build far more wealth than a ₹10,000 SIP that gets stopped after 3 years during a market downturn. Use the step-up SIP feature to increase your investment amount by 10% every year in line with salary increments, without straining your monthly budget.
