finfluencee.com — Tools
SIP Calculator
See exactly what your monthly discipline is worth — with step-up, compounding, and year-by-year clarity.
Your Numbers
Minimum ₹500. Start small, step up yearly.
Large cap funds average 11–13% over 10+ years.
Compounding really accelerates after year 8–10.
Increase SIP by this % every year. Recommended: 10–15%.
Amount Invested
—
Estimated Returns
—
Total Corpus
—
Growth Curve — Invested vs Corpus
Wealth Breakdown
—
Returns
Invested
Returns
Year by Year
Your Wealth Journey, Mapped
| Year | Monthly SIP | Total Invested | Corpus Value | Gain |
|---|
The Basics
What is a SIP — and Why Does It Work?
Systematic Investment Plan
A SIP lets you invest a fixed amount every month into a mutual fund. Instead of timing the market, you stay invested across market cycles — buying more units when prices fall, fewer when they rise. Over time, this averaging quietly builds enormous wealth.
Why Indian Investors Love SIPs
- Start with as little as ₹500 per month
- No need to time market entry
- Compounding works harder the longer you wait
- Step-up SIPs grow with your salary
- Pause or stop anytime — no penalty
- ELSS SIPs give Section 80C tax deduction
What is a Step-Up SIP?
Every year, you increase your SIP amount by a fixed percentage — say 10%. If you start at ₹10,000/month, next year it becomes ₹11,000, then ₹12,100. This mirrors your rising income and dramatically accelerates your final corpus compared to a flat SIP.
How to Use This Calculator
- Enter your monthly SIP amount
- Add expected annual return (12% is realistic for equity funds)
- Set your investment horizon in years
- Optionally add a step-up % to model salary-linked growth
- Hit Calculate — see your corpus, breakdown, and growth curve
The Math
How the SIP Formula Works
FV = P × [((1 + r)ⁿ − 1) / r] × (1 + r)
P = Monthly investment amount
r = Monthly return rate (Annual rate ÷ 12 ÷ 100)
n = Total number of months (Years × 12)
FV = Future value of your investment
r = Monthly return rate (Annual rate ÷ 12 ÷ 100)
n = Total number of months (Years × 12)
FV = Future value of your investment
The investor who starts a ₹5,000 SIP at 28 and forgets about it will likely retire wealthier than the one who waits to "get serious" at 40.finfluencee.com — The Case for Starting Small
Common Questions
Frequently Asked Questions
Start with whatever doesn't feel painful. ₹1,000–₹5,000 a month is a perfectly reasonable entry for someone early in their career. The psychological wins from seeing your SIP grow matter more than the size of the initial amount. You can step up the amount every April when salaries are typically revised.
For diversified equity funds over a 10–15 year horizon, 11–14% has historically been achievable in India. However, this is never guaranteed. For conservative planning, use 10–11%. For aspirational modelling, 13–14%. Debt funds or hybrid funds will show lower returns.
A lump sum works well if you have a large amount ready and markets are attractively valued. But for most salaried professionals in India who invest from monthly income, SIPs remove the stress of timing and spread risk across market cycles. The best option is whichever you actually stay committed to.
Yes. Most AMCs in India allow you to pause a SIP for 1–3 months. You can stop at any time — your invested corpus remains in the fund and continues to grow. There is no exit penalty for open-ended equity mutual funds (ELSS has a 3-year lock-in per instalment).
A 10% annual step-up aligned with your salary hike means you're building wealth without feeling the pinch. The difference in final corpus versus a flat SIP is dramatic over 15–20 years. If your income grows faster, step up by 15%.
Yes. Each SIP instalment is treated as a separate investment for tax purposes. For equity mutual funds held over 1 year, gains above ₹1 lakh attract 10% LTCG tax. Gains within 1 year are taxed at 15% STCG. ELSS funds have a 3-year lock-in and give Section 80C deduction up to ₹1.5 lakh per year.
Disclaimer: This calculator is for illustrative purposes only. Returns shown are estimates based on inputs provided and do not represent guaranteed outcomes. Mutual fund investments are subject to market risks. Past performance is not indicative of future results. Please consult a SEBI-registered financial advisor before making investment decisions.