SIP Calculator with Inflation

What is a SIP?

A SIP (Systematic Investment Plan) is a way to invest a fixed amount at regular intervals, usually monthly. It is commonly used for mutual funds in India because it helps build a habit and averages your purchase price over time.

In simple terms, a SIP is like a recurring deposit for investments. Instead of trying to time the market, you invest a smaller amount every month, which can reduce the impact of market ups and downs over long periods. This approach is popular for long-term goals such as retirement, children's education, or wealth creation.

SIPs are flexible: you can start with a small monthly amount, pause or stop when needed, and increase your contribution as your income grows.

A SIP return depends on the fund you choose, the market cycle, and how long you stay invested. This calculator helps you estimate a potential future value based on an expected annual return rate, but actual returns can be higher or lower.

How this SIP calculator works

This SIP calculator estimates how much your money could grow to, based on the monthly SIP amount, expected return rate, and time period. It also shows how much you invest in total and how much of the final value is growth.

Quick steps

1. Choose SIP or Lumpsum.
2. Enter your amount, expected return rate, and investment duration.
3. See Total Invested, Estimated Returns, and Final Value.

How can this SIP calculator help you?

A SIP return calculator helps you estimate the future value of your monthly investments based on an expected return rate and time period. It shows how much you will invest in total, how much of the final corpus is growth, and how long it may take to reach a target.

This is useful for goal planning in India because it lets you test different SIP amounts, and return assumptions before you commit. You can quickly compare scenarios for goals like a ₹1 crore corpus, child education, or retirement and pick a monthly amount that fits your budget.

Remember, the calculator gives an estimate, not a guarantee. Actual returns depend on the fund chosen, market performance, and how consistently you stay invested.

How much SIP for ₹1 crore in 10 years?

Below are approximate monthly SIP amounts needed to target ₹1 crore in 10 years at different return assumptions. These examples use month-start SIP with monthly compounding.

SIP vs Lumpsum: when people use what

Formula used

SIP is typically modeled using monthly compounding. If your SIP is invested at the beginning of each month (common assumption in calculators), the future value is:

Future Value (SIP) = P × [((1 + r)ⁿ − 1) / r] × (1 + r)
Where P = monthly SIP, r = monthly return (annual rate ÷ 12), n = total months

Lumpsum is modeled as compounding over years:

Future Value (Lumpsum) = PV × (1 + R)^T
Where PV = one-time amount, R = annual return rate, T = years

What return rate should you use in India

People often type 12% or 15% because it “sounds right”, but your return assumption should match your product type, time horizon, and how much ups and downs you can tolerate.

• Debt funds / low-risk options: usually lower expected returns, more stable
• Hybrid funds: middle ground, depends on equity mix
• Equity funds: higher long-term potential, but can fall sharply in bad years

If you want a quick check, don’t start with “highest return”. Start with your goal date and risk comfort, then pick a sensible range.

Common mistakes people make with SIP calculators

• Assuming returns are guaranteed: this is an estimate, real returns move up and down.
• Using a very high return rate: it makes goals look easier than they are.
• Ignoring time: a longer time period often matters more than chasing a higher % return.
• Not linking SIPs to goals: SIP is a tool, the goal plan is the map.

What this calculator does not include

• Mutual fund expense ratio impact, exit load, or brokerage costs
• Taxes (STCG/LTCG) and dividend taxation

For goal planning, it helps to add inflation and taxes, then check if your SIP still matches your timeline.

FAQs