What annual return should I assume?

Diversified Indian equity funds have historically delivered around 10–12% a year over long periods, so 12% is a common planning assumption — but it is an assumption, not a promise, and actual returns vary widely. Debt funds warrant a lower 6–8%. Running two rates (say 10% and 12%) gives a more honest planning range than a single number.

Does the calculator assume investing at the start or end of the month?

Start of the month. It uses the annuity-due formula — FV = P × ((1 + i)ⁿ − 1) ÷ i × (1 + i) — which matches most Indian AMC and SIP calculators. The end-of-month convention drops the final (1 + i) factor and produces a slightly lower figure, about 1% lower at a 12% annual return.

What is rupee-cost averaging?

Because a SIP invests a fixed rupee amount every month, it automatically buys more units when the NAV is low and fewer when it is high. Over time your average cost per unit tends to sit below the average price, and you avoid trying to time the market. It smooths volatility; it does not eliminate market risk.

How are SIP gains taxed?

For equity funds, as of FY 2025-26, gains on units held over a year are long-term and taxed at 12.5% beyond a ₹1.25 lakh annual exemption; units sold within a year attract 20% short-term tax. Each monthly installment has its own holding period, counted first-in-first-out when you redeem. This projection is pre-tax — confirm your own position with a CA.

Does it account for inflation or annual step-ups?

No. The result is in future rupees and the monthly amount is held constant. For an inflation-adjusted view, enter a real return instead (expected return minus roughly 6% inflation). A step-up SIP — raising the installment every year — would end meaningfully higher than this projection.

Is the projected value guaranteed?

No. Mutual fund returns are market-linked, and the constant-rate assumption here is a simplification. The actual outcome depends on the sequence of market returns over your investment period, so treat the figure as a planning estimate, not an assured maturity value.

Is my financial data uploaded?

No — the calculation runs entirely in your browser, and nothing you type is sent to a server.

SIP Calculator (India)

Project mutual fund SIP returns in ₹ for a monthly investment and expected return.

Runs in your browser — files never leave your device

Monthly investment₹Expected return%Years

Future value

₹1,161,695

Invested

₹600,000

Returns

₹561,695

How it works

A SIP (systematic investment plan) invests a fixed amount in a mutual fund every month, buying more units when prices fall and fewer when they rise — rupee-cost averaging. This calculator projects what that discipline could grow to: enter the monthly amount, an assumed annual return and a duration, and it shows the projected future value, the total you will have invested, and the difference between the two — your wealth gain.

The projection uses the standard SIP formula with monthly compounding: FV = P × ((1 + i)ⁿ − 1) ÷ i × (1 + i), where P is the monthly investment, i is the monthly rate (annual return ÷ 12 ÷ 100) and n is the number of months. The trailing (1 + i) treats each installment as invested at the start of its month (an annuity due), which is the convention most Indian AMC and SIP calculators use; an end-of-month convention would give a slightly smaller figure. Results are displayed rounded to the nearest rupee.

Take the defaults: ₹5,000 a month at 12% a year for 10 years. The monthly rate i is 1% and n is 120 months, so FV = 5,000 × ((1.01¹²⁰ − 1) ÷ 0.01) × 1.01 ≈ ₹11,61,695. You invest ₹6,00,000 over the decade; the remaining ₹5,61,695 is projected growth — nearly as much as you put in, and most of it earned in the later years as compounding accelerates.

Treat the output as a scenario, not a promise. The formula assumes the same return every month, while real equity returns swing widely from year to year; 12% is a common long-term assumption for Indian equity funds, not a guarantee. The projection is also pre-tax and pre-inflation — as of FY 2025-26, long-term equity gains above ₹1.25 lakh a year are taxed at 12.5% — so for planning, run a conservative and an optimistic rate and treat the range as your answer. Verify tax figures with a CA before acting on them.

Frequently asked questions

What annual return should I assume?: Diversified Indian equity funds have historically delivered around 10–12% a year over long periods, so 12% is a common planning assumption — but it is an assumption, not a promise, and actual returns vary widely. Debt funds warrant a lower 6–8%. Running two rates (say 10% and 12%) gives a more honest planning range than a single number.
Does the calculator assume investing at the start or end of the month?: Start of the month. It uses the annuity-due formula — FV = P × ((1 + i)ⁿ − 1) ÷ i × (1 + i) — which matches most Indian AMC and SIP calculators. The end-of-month convention drops the final (1 + i) factor and produces a slightly lower figure, about 1% lower at a 12% annual return.
What is rupee-cost averaging?: Because a SIP invests a fixed rupee amount every month, it automatically buys more units when the NAV is low and fewer when it is high. Over time your average cost per unit tends to sit below the average price, and you avoid trying to time the market. It smooths volatility; it does not eliminate market risk.
How are SIP gains taxed?: For equity funds, as of FY 2025-26, gains on units held over a year are long-term and taxed at 12.5% beyond a ₹1.25 lakh annual exemption; units sold within a year attract 20% short-term tax. Each monthly installment has its own holding period, counted first-in-first-out when you redeem. This projection is pre-tax — confirm your own position with a CA.
Does it account for inflation or annual step-ups?: No. The result is in future rupees and the monthly amount is held constant. For an inflation-adjusted view, enter a real return instead (expected return minus roughly 6% inflation). A step-up SIP — raising the installment every year — would end meaningfully higher than this projection.
Is the projected value guaranteed?: No. Mutual fund returns are market-linked, and the constant-rate assumption here is a simplification. The actual outcome depends on the sequence of market returns over your investment period, so treat the figure as a planning estimate, not an assured maturity value.
Is my financial data uploaded?: No — the calculation runs entirely in your browser, and nothing you type is sent to a server.

SIP Calculator (India)

How it works

Frequently asked questions

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