Calculate SIP (Systematic Investment Plan) returns with year-by-year wealth table, lumpsum comparison, and step-up SIP (annual increment option). See invested amount vs estimated returns and understand rupee cost averaging with compounding.
Enter your monthly SIP amount, expected annual return rate, and investment tenure in years. For a step-up SIP (where you increase your contribution each year as your income grows), enable the step-up option and enter the annual increment percentage — even 5-10% annual increases dramatically boost your final corpus.
The comparison section shows what would happen if you invested the total SIP amount as a lumpsum today at the same expected return. SIP benefits from rupee cost averaging (buying more units when markets are down), while a lumpsum depends on timing. This comparison helps illustrate the risk-return trade-off.
The wealth table shows the total invested, estimated portfolio value, and returns for each year of your SIP. This helps you see how wealth builds gradually and then accelerates in later years as compounding takes effect. All amounts are displayed in Indian number formatting (lakh, crore).
A SIP is a method of investing a fixed amount regularly in mutual funds — typically monthly — rather than investing a large lumpsum at once. It enables retail investors to build wealth gradually through disciplined, automated investing. SIPs benefit from rupee cost averaging (more units purchased when markets fall) and the power of long-term compounding.
The future value formula for SIP is: FV = P × ((1+r)^n - 1)/r × (1+r), where FV is the maturity amount, P is the monthly SIP amount, r is the monthly rate of return (annual rate/12 converted correctly to monthly equivalent using (1+r_annual)^(1/12) - 1), and n is the total number of months. The (1+r) at the end accounts for payments at the beginning of each month.
Rupee cost averaging means that when markets fall, your fixed SIP amount buys more mutual fund units; when markets rise, it buys fewer. Over time this averages out your purchase cost — you automatically buy more at lower prices. This eliminates the need to time the market and reduces the impact of volatility on your overall portfolio cost.
A step-up SIP (also called increasing SIP or top-up SIP) allows you to increase your SIP amount by a fixed percentage every year. For example, starting with ₹5,000/month and increasing by 10% every year means you invest ₹5,500/month in year 2, ₹6,050 in year 3, and so on. This aligns with salary growth and dramatically increases your final corpus compared to a flat SIP.
Neither is universally better — it depends on market timing and your financial situation. SIP is better for most retail investors because it removes timing risk, requires smaller cash outlays, and benefits from rupee cost averaging. Lumpsum investing can deliver higher returns if you invest at a market low and markets rally strongly — but this requires correct timing, which is very difficult to predict. For most salaried individuals, SIP is the recommended approach.
Expected returns depend on the type of mutual fund. Equity funds (large cap) have historically delivered 10-12% CAGR over 10+ year periods in India. Balanced/hybrid funds typically deliver 8-10%. Debt funds deliver 6-8%. For financial planning purposes, using 10-12% for equity SIPs over 10+ years is reasonable, though not guaranteed. Past performance does not guarantee future returns.
