The SIP calculator below tells you what a monthly mutual fund SIP could grow into. Plug in how much you can invest each month, the return you’re assuming (most equity funds in India have averaged 11–13% over 10+ year windows), and how long you’ll keep going. You’ll see the final corpus, how much of it is your own money, and how much is compounding at work.
The big surprise for most first-time investors: in a 20-year SIP, less than a third of the final amount is what you put in. The rest is returns on returns.
How SIP returns are calculated
Every SIP calculator in India — Groww, ClearTax, Zerodha Coin, ET Money, AMC fact sheets — uses the same future-value-of-annuity formula:
M = P × [(1 + i)ⁿ − 1] / i × (1 + i)
The inputs:
- P is your monthly SIP amount
- i is the monthly rate of return (annual rate ÷ 12 ÷ 100)
- n is the total number of monthly instalments (years × 12)
The (1 + i) factor at the end is because each SIP instalment is invested at the start of the month and earns one extra month’s growth. AMFI and most AMCs use this exact “begin of period” convention.
This is just compound interest applied month-by-month to a stream of equal contributions. The output is an estimate, not a guarantee — actual returns depend on the fund’s performance and when each instalment was invested relative to market levels. But over 10+ year horizons, the maths gets boringly close to reality if the fund’s CAGR is in line with what you assumed.
Worked example: ₹10,000/month for 15 years at 12%
Say you start a ₹10,000 SIP in a Nifty 50 index fund and keep it going for 15 years. 12% is roughly what large-cap index funds have delivered over rolling 15-year windows since 2005.
The math:
- P = 10,000
- i = 12 ÷ 12 ÷ 100 = 0.01
- n = 15 × 12 = 180
Plug in:
| Metric | Value |
|---|---|
| Total invested over 15 years | ₹18,00,000 |
| Future value (corpus) | ₹50,45,759 |
| Estimated returns | ₹32,45,759 |
| Wealth gain ratio | 2.80× |
Read that again: you put in ₹18 lakh out of pocket, and walk away with ₹50 lakh. Returns alone are ₹32 lakh — almost twice what you contributed. That’s the part nobody tells you when you start a SIP at age 25 with the cheapest plan you can afford. Time does most of the heavy lifting.
How tenure changes the corpus (10 vs 20 vs 30 years)
The longer you stay, the more disproportionate the returns get. Same ₹10,000/month at the same 12%:
| Tenure | Total invested | Corpus | Returns | Returns as % of corpus |
|---|---|---|---|---|
| 10 years | ₹12,00,000 | ₹23,23,391 | ₹11,23,391 | 48% |
| 15 years | ₹18,00,000 | ₹50,45,759 | ₹32,45,759 | 64% |
| 20 years | ₹24,00,000 | ₹99,91,479 | ₹75,91,479 | 76% |
| 25 years | ₹30,00,000 | ₹1,89,76,351 | ₹1,59,76,351 | 84% |
| 30 years | ₹36,00,000 | ₹3,52,99,138 | ₹3,16,99,138 | 90% |
In a 30-year SIP, 90% of your final corpus is returns — only 10% is what you actually contributed. Stopping a SIP three years before the goal is the single most expensive mistake young investors make. The last few years compound the hardest.
How return rate changes the outcome
What if the fund underperforms by 2%? Same ₹10,000/month, 20-year tenure:
| Assumed return | Corpus after 20 years |
|---|---|
| 8% (debt-heavy hybrid) | ₹58,90,205 |
| 10% (large-cap index) | ₹75,93,749 |
| 12% (flexi-cap / Nifty 50 long-term) | ₹99,91,479 |
| 14% (mid-cap index, riskier) | ₹1,32,77,832 |
| 15% (small-cap, much riskier) | ₹1,53,52,266 |
A 2% difference in CAGR is the difference between ₹76 lakh and ₹1 crore over 20 years. That’s why your fund choice and expense ratio (lower is better; index funds run 0.10–0.20%, active large-caps run 1–2%) matter more than the headline return number any AMC throws at you.
Frequently asked questions
Is the calculator return guaranteed?
No. SIP returns depend on the fund’s actual NAV movement. The number this calculator shows assumes a constant rate of return every month, which doesn’t happen in real markets. In a real SIP you might see −15% in year 3 and +25% in year 5. Over long horizons (10+ years) and across diversified equity funds, the average return tends to settle close to the long-term CAGR you assume — but no AMC, advisor or calculator can guarantee any specific number.
What return rate should I use?
Look at the fund’s 10- or 15-year rolling CAGR if it has that history. As of April 2026, broad benchmarks for Indian funds:
- Large-cap / index funds: 11–13% over rolling 15-year windows
- Flexi-cap / multi-cap: 12–14%
- Mid-cap funds: 13–16% (much higher swings)
- Small-cap funds: 14–18% (largest swings, deepest drawdowns)
- Hybrid / balanced advantage: 9–11%
- Liquid / debt funds: 6–7%
Use the conservative end of the range. If you’re projecting 18% small-cap returns for 30 years to make a goal-plan work, the assumption is wrong, not the maths.
Should I do step-up SIP or fixed SIP?
Step-up means you raise the SIP by 5–10% every year (matching salary increments). On a ₹10,000 starting SIP at 12% return for 20 years, a 10% annual step-up takes the corpus from about ₹1 crore to roughly ₹1.95 crore. The calculator above is a fixed SIP — useful for the base scenario. If you’re disciplined enough to actually raise the SIP each year, step-up is a much bigger lever than chasing the next “best” mutual fund.
Can I withdraw money before the SIP ends?
Yes, but watch out for two costs. First, exit load: most equity funds charge 1% if you redeem within 365 days. Second, tax: from FY 2024-25 onward, equity LTCG above ₹1.25 lakh per year is taxed at 12.5%, and STCG (held under 1 year) is at 20%. For ELSS funds, each instalment is locked for 3 years individually. Plan partial withdrawals around these numbers, not just NAV.
Is SIP better than lumpsum?
If you have a lumpsum already (say, year-end bonus), invest it directly — historically lumpsum beats SIP about 65% of the time over long windows simply because more money is in the market for longer. SIP is for people who don’t have a lumpsum and need to invest from monthly cash flow. The “rupee cost averaging” argument for SIP is overrated; the real advantage of SIP is behavioural — it removes the question of “should I invest now or wait” by automating it.
Does this calculator account for inflation?
No. The corpus shown is in today’s rupees, but it’ll be paid out 10 or 20 years later. Subtract roughly 5–6% per year for inflation to get the real (purchasing-power) value. A ₹1 crore corpus in 2046 is worth roughly ₹35 lakh in today’s money at 5% inflation. Plan goals in real terms, not nominal.
Will the calculator work for ELSS, ETF SIPs, or international funds?
Yes — the formula is the same regardless of the underlying instrument. Just use the right CAGR. ELSS funds tend to track flexi-cap returns (12–14%); ETF SIPs match the index they track; international (US-equity) funds have done 13–15% in INR terms but carry currency and tax-treatment differences. Plug in the realistic CAGR for the fund category and the maths is identical.
Sources
- AMFI Mutual Fund Industry: SIP performance benchmarks 2010–2025
- SEBI Master Circular on Mutual Funds (taxation, exit load, LTCG)
- Groww and ClearTax SIP calculator formula and examples
- Nifty 50 and Nifty Midcap 150 rolling-return data, NSE