SIP Calculator
Calculate the returns of your mutual fund SIP investment in just a few clicks. Enter your monthly amount, your investment period, and your expected return to see how your wealth grows over time.
Monthly SIP Amount
SIP Period
Expected Return Rate (p.a)
Investment
Estimated Returns
Invested amount
₹ 30,00,000
Estimated returns
₹ 39,66,432
Total value
₹ 69,66,432
Disclaimer: Past performance is not an indicator of future returns
What is SIP Calculator?
A SIP calculator is a free online financial tool that estimates the future value of your mutual fund investments made through a systematic investment plan (SIP). By entering three simple inputs, monthly investment amount, investment duration, and an expected annual return rate, the calculator instantly shows you,
- Total invested amount
- Total Estimated returns earned
- Final maturity (corpus) value
Unlike a lumpsum investment, a SIP involves investing a fixed amount every month. The calculator uses compound interest to project how these regular installments accumulate and grow over time, helping you set realistic financial goals before you invest a rupee.
How Does the SIP Calculator Work?
The SIP calculator works on the principle of compound interest, where the returns you earn are reinvested to generate additional returns. This compounding effect is what makes long-term SIP investments. significantly more powerful than keeping money in savings account or fixed deposit
SIP Calculator Formula
The formula used to calculate the future value of a SIP is:
SIP future value formula,
FV = P × {[(1 + i)^n – 1] / i} × (1 + i)
Here are the variables explained:
- FV = Future Value (maturity amount)
- P = Monthly SIP investment amount
- i = Monthly interest rate (Annual rate ÷ 12)
- n = Total number of payments (Years × 12)
Goal Based SIP Examples
Here is how different monthly SIP amounts grow over time at a 12% expected annual return.
₹5,000 | 5 Years | ₹3,00,000 | ₹1,12,450 | ₹4,12,450 |
₹10,000 | 15 Years | ₹18,00,000 | ₹32,10,000 | ₹50,10,000 |
₹15,000 | 25 Years | ₹45,00,000 | ₹2,35,00,000 | ₹2,80,00,000 |
How to Use the Kotak SIP Calculator
Using the Kotak Neo SIP Calculator takes less than 30 seconds. Follow these five steps:
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Enter Your Monthly SIP Amount - Type the amount you plan to invest every month, starting from as low as ₹100.
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Set Your Investment Duration - Choose how many years you want to stay invested. The longer the tenure, the more powerful the compounding.
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Add Your Expected Annual Return - Enter an estimated return rate based on the type of mutual fund you are considering. Equity funds historically average 10-15%, while debt funds average 6–8%.
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View Your Results Instantly - The calculator displays your total invested amount, estimated returns, and projected maturity value in real time. The chart updates as you adjust the sliders.
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Adjust and Explore - Change the inputs to compare different scenarios. Increase the tenure by 5 years or bump up the monthly amount by ₹2,000 to see how dramatically your corpus changes.
SIP vs Lumpsum: Which is Right for You?
Both SIP and Lumpsum are ways to invest in mutual funds, but they serve different investor profiles and market situations. Here is a quick comparison to help you decide:
Investment mode | Regular fixed installments | One-time large investment |
Market timing risk | Low (rupee cost averaging) | High (depends on entry point) |
Minimum amount | As low as ₹100/month | Usually ₹1,000 or more |
Compounding benefit | High (longer tenure) | Depends on entry timing |
Best suited for | Salaried / regular income earners | Windfall income, bonus, etc. |
Flexibility | Start, pause, stop anytime | Single decision investment |
For most retail investors in India, SIP is the preferred route because it removes the need to time the market and builds disciplined investing habits. However, if you receive a bonus or lumpsum amount, investing it all at once in a debt fund and then doing a Systematic Transfer Plan (STP) into equity is a smart hybrid approach.
What is SIP (Systematic Investment Plan)?
A Systematic Investment Plan (SIP) is a method of investing in mutual funds where you invest a fixed amount at regular intervals – typically monthly – instead of investing a large sum all at once. Each installment purchases mutual fund units at the prevailing net asset value (NAV) on the investment date.
When the NAV is low, your fixed amount buys more units. You purchase fewer units when the NAV is high. Over time, this strategy averages out your cost per unit – a phenomenon known as 'Rupee Cost Averaging' – which reduces the impact of short-term market volatility on your overall portfolio.
SIPs are ideal for building long-term wealth because:
- They automate investing via auto-debit from your bank account on a set date
- They require no expertise in market timing or stock picking.
- They are highly flexible – you can start with as little as ₹100/month
- They work best when continued through market ups and downs without interruption
Types of SIPs
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Regular SIP The most common type. You invest a fixed amount – say ₹5,000 – on the same date every month, regardless of market conditions. Best for salaried investors looking to build a consistent saving habit.
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Step-Up SIP (Top-Up SIP) Allows you to increase your SIP amount at regular intervals, typically annually. For example, you start with ₹5,000/month and increase it by 10% every year. As your income grows, your investment grows with it. This is one of the most powerful wealth-building strategies available.
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Flexible SIP Lets you vary your investment amount based on your cash flow each month. If you have surplus funds, you invest more. If a month is tight, you invest less. Useful for freelancers or business owners with irregular income.
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Perpetual SIP A SIP without a fixed end date. It continues until you actively choose to stop it. Useful if you do not have a specific target date in mind and want to stay invested indefinitely.
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Trigger SIP Automatically starts or stops based on pre-set market conditions or specific dates (such as after a market correction). Better suited to experienced investors who track market levels actively. Not recommended for beginners.
How Much Should You Invest in SIP?
A common rule of thumb is to invest at least 20% of your monthly take-home salary in SIPs. However, the ideal SIP amount depends on your income, current expenses, financial goals, and investment horizon.
Here is a reference guide:
₹20,000 – ₹35,000 | ₹2,000 – ₹5,000/month | Emergency fund, short-term savings goals |
₹35,000 – ₹60,000 | ₹5,000 – ₹12,000/month | Home down payment, child’s education fund |
₹60,000 – ₹1,00,000 | ₹10,000 – ₹20,000/month | Retirement planning, long-term wealth creation |
Above ₹1,00,000 | ₹20,000 – ₹40,000/month | Early retirement, multi-goal portfolio |
Benefits of Investing Through SIP
SIP investing comes with several distinct advantages over traditional investment options like fixed deposits (FDs) or recurring deposits (RDs):
1. Power of Compounding
Returns earned on your SIP are reinvested to generate additional returns. The longer you stay invested, the more dramatic the compounding effect. A ₹10,000/month SIP at 12% for 20 years generates approximately ₹99 lakh on a total investment of only ₹24 lakh.
2. Rupee Cost Averaging
Because you invest a fixed amount every month regardless of market conditions, you automatically buy more units when markets fall and fewer when markets rise. Over time, this lowers your average cost per unit and smooths out the impact of market volatility.
3. Tax Benefits via ELSS SIPs
If you invest in an ELSS (Equity Linked Savings Scheme) fund through SIP, your investment qualifies for a tax deduction of up to ₹1.5 lakh per year under Section 80C of the Income Tax Act. ELSS funds have the shortest lock-in period (3 years) among all 80C instruments, making them one of the most efficient tax-saving tools available to individual investors.
4. Low Minimum Investment
You can start a SIP with as little as ₹100 per month on some funds (₹500 – ₹1,000 on most). This makes equity investing accessible to first-time investors and students, not just high-net-worth individuals.
5. Flexibility and Control
Unlike a fixed deposit which locks in your money for a fixed term, a SIP can be paused, increased, decreased, or stopped at any time without penalty (subject to exit load on early redemptions in some funds). You remain in control of your investment at all times.
6. SIP vs FD: Which Gives Better Returns?
Typical Returns | 10–15% p.a. (long-term historical average) | 6–7.5% p.a. (current rates, 2025–26) |
Tax on Returns | LTCG tax @ 12.5% above ₹1.25 lakh gains | Fully taxable as per income slab |
Inflation Beating | Yes (especially over 10+ years) | Borderline at current FD rates |
Liquidity | High (most funds allow early exit) | Penalty on premature withdrawal |
Risk | Market-linked — value may fluctuate | Capital guaranteed |
Ideal For | Long-term wealth creation (5+ years) | Short-term savings, capital protection |
SIP for Different Financial Goals
One of the most practical uses of the SIP calculator is goal-based planning. Here is how SIPs can be mapped to your key life goals:
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SIP for Retirement Planning
Retirement is the most common reason Indians start a SIP. The key is to start early. A 25-year-old investing ₹10,000/month at 12% for 35 years accumulates approximately ₹3.8 crore by age 60. Waiting until 35 to start the same SIP results in only ₹98 lakh - a difference of nearly ₹3 crore just from starting 10 years later. -
SIP for Child's Education
Higher education costs in India are rising at approximately 10–12% annually. If your child is 5 years old today and you expect to need ₹30 lakh for college in 13 years, you would need to invest approximately ₹10,500/month at a 12% expected return to reach that goal. Use the SIP calculator above to compute your required monthly investment for any target amount. -
SIP for a Home Down Payment
Planning to buy a house in 5–7 years? A SIP in a balanced advantage or hybrid fund can help you build the down payment corpus systematically. For a target of ₹20 lakh in 6 years at 10% expected returns, you would need a monthly SIP of approximately ₹18,800. A more aggressive equity fund at 12% would require approximately ₹17,200/month. -
SIP for Emergency Fund
While liquid funds and savings accounts are better suited for emergency funds, a short-term SIP in a liquid or ultra-short-term debt fund can help build the initial corpus quickly. Aim for 3–6 months of monthly expenses before moving to equity-orientated SIPs.
Discover the Power of SIP for Smart Investments
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FAQs on SIP Calculator
A SIP (Systematic Investment Plan) calculator is a free financial tool that estimates the future value of your monthly mutual fund investments. You enter your monthly investment amount, investment duration, and expected annual return rate, and the calculator instantly shows your total invested amount, projected returns, and the final maturity value.
You can start a SIP with as little as ₹100 per month, depending on the mutual fund scheme you choose. Most equity funds have a minimum SIP of ₹500 to ₹1,000 per month. ELSS (tax-saving) funds typically require a minimum of ₹500.
Yes. You can increase, decrease, or modify your SIP amount depending on the fund house's guidelines. Many platforms, including Kotak Neo, allow you to top up or step up your SIP easily.
Financial experts generally recommend a minimum tenure of 5 years to benefit meaningfully from compounding and rupee cost averaging. For long-term goals like retirement or children's higher education, a tenure of 10–30 years can yield significantly higher returns due to compounding.
Yes, SIP is not a contractual obligation. You can pause, stop, or cancel your SIP at any time without any penalty. Most fund houses allow a temporary pause of 1–3 months. Kotak Neo makes it simple to manage your SIP directly from the app.
Standard SIP calculators do not factor in inflation, expense ratio, exit loads, or taxes. They assume a constant rate of return throughout the investment period. For a more holistic picture, consider these factors separately when planning your financial goals.
No. SIP is not an investment tool by itself. SIP is one of the two ways to invest in mutual funds; the other common method is lump sum investing.
No, you are not limited to any investment amount. Your monthly income and future financial goals must decide your instalment amount.
SIPs are generally more suitable for regular investors as they reduce market timing risk through rupee cost averaging, promote financial discipline, and require lower capital upfront. Lump sum investments can deliver higher returns if the entry timing is right, making them more suited for experienced investors with a windfall amount.
Historically, diversified large-cap equity mutual funds in India have delivered returns in the range of 10-14% per annum over a 10+ year period. A 12% expected return is considered a reasonable benchmark for long-term equity SIPs. For debt funds, a more realistic assumption is 6-8% p.a. Actual returns will depend on the fund category, market conditions, and your holding period.