What is the SIP formula used in this calculator?

FV = P × [(1+r)ⁿ − 1] / r × (1+r), where P = monthly investment, r = monthly rate (annual rate ÷ 12 ÷ 100), n = number of months. This is the standard future value of annuity formula.

What is the minimum SIP amount in India?

Most mutual funds accept SIPs starting at ₹100–₹500 per month. Many popular funds like SBI Bluechip, Mirae Asset, and Axis Bluechip allow SIPs from ₹500/month.

How to calculate inflation-adjusted SIP returns?

Real return = [(1 + nominal return) ÷ (1 + inflation rate)] − 1. For example, 12% return with 6% inflation gives a real return of ~5.66%. The calculator above shows both nominal and inflation-adjusted (real) wealth values.

What is goal-based SIP and how to calculate it?

Goal-based SIP calculates the monthly SIP needed to reach a target amount. Formula: P = FV × r / [(1+r)ⁿ − 1] / (1+r). Enter your target corpus, years, and expected return — the calculator tells you exactly how much to invest monthly.

SIP Calculator India 2025 | Mutual Fund Returns | Free Online Tool | Arthzo

arthzo

SIP Calculator India
Mutual Fund Returns

Calculate future value, inflation-adjusted wealth & plan your financial goals with our accurate SIP return calculator.

📊 Compound Formula 📈 Chart & Year Table 🎯 Goal-based SIP 💹 SIP vs FD

₹11.6L

₹5K/month × 10 years

at 12% annual return

SIP Details

Monthly Investment ₹5,000

₹500₹2L

Expected Return (% p.a.) 12%

1%30%

Time Period 10 Yrs

1 Yr40 Yrs

Inflation Rate (% p.a.) 6%

0%15%

🏦 EMI Calculator → 👧 Sukanya Samriddhi Calculator → 🧾 Income Tax Calculator →

Popular Calculators

🏦

EMI Calculator

Home, Car & Personal Loan EMI

→ 👧

Sukanya Samriddhi

SSY Returns & Maturity Calculator

→ 🧾

Income Tax Calculator

Old vs New Regime FY 2026-27

→

SIP Result Summary

📊 Investment vs Returns Growth

Amount Invested

Total Returns

Inflation-adjusted

📅 Year-by-Year Breakdown ▼

📈

Your SIP Results Will Appear Here

Adjust the sliders and click Calculate to see future value, chart & year-wise breakdown.

⚖️ SIP vs FD — Which is Better?

Parameter	SIP (Mutual Fund)	Fixed Deposit (FD)
Average Returns	10–15% CAGR (equity)	6.5–7.5% p.a.
Risk Level	Medium–High (market-linked)	Very Low (guaranteed)
Inflation Beating	✅ Yes (typically)	❌ Barely (real return ~1%)
Tax on Returns	LTCG 12.5% (>₹1.25L gains)	As per income slab
Flexibility	Start/stop/modify anytime	Fixed lock-in, penalty on exit
Min Investment	₹100–₹500/month	₹1,000 typically
Liquidity	High (T+3 redemption)	Low (lock-in period)
Ideal For	Long-term wealth (5+ years)	Short-term safety (1–3 years)

What is SIP? How Does a SIP Calculator Work?

A Systematic Investment Plan (SIP) is a disciplined method of investing a fixed amount in a mutual fund scheme at regular intervals — typically monthly. Unlike a lumpsum investment, SIP allows you to invest as little as ₹500 per month and benefit from rupee-cost averaging and the powerful effect of compounding.

Our SIP calculator uses the standard future value of annuity formula to calculate how much your monthly investments will grow over time at a given expected rate of return. It also shows you the inflation-adjusted real value of your corpus — so you know the true purchasing power of your wealth.

🧮 SIP Formula Explained

The formula for SIP future value is: FV = P × [(1+r)ⁿ − 1] / r × (1+r)

P = Monthly investment amount (e.g. ₹5,000)
r = Monthly interest rate = Annual rate ÷ 12 ÷ 100
n = Total months = Years × 12

📌 Example: ₹5,000 SIP for 10 Years @ 12%

Monthly SIP

₹5,000

Duration

10 Years

Expected Return

12% p.a.

Amount Invested

₹6 Lakh

Gains (Est.)

₹5.61 Lakh

Future Value

₹11.61 Lakh

💡 Power of Compounding in SIP

The longer you stay invested, the more dramatic the compounding effect. A ₹10,000/month SIP at 12% grows from ₹24L invested to ₹99.9L over 20 years — a 4x multiplication. Extend it to 30 years, and your ₹36L investment becomes over ₹3.5 crore. This is why starting early is the single most important factor in wealth creation.

🎯 What is Goal-Based SIP?

Goal-based SIP helps you reverse-calculate: instead of asking "how much will I have?", you ask "how much do I need to invest to reach ₹1 crore?" Enter your target corpus, time horizon, and expected return — the calculator tells you the exact monthly SIP amount needed. Use this for goals like retirement, child's education, house down payment, or foreign vacation.

🔢 More Financial Calculators — Arthzo

🏦

EMI Calculator

Home, car & personal loan

🧾

Tax Calculator

Old vs New Regime FY 2026

👧

Sukanya Samriddhi

SSY maturity & returns

🏛

FD Calculator

Fixed deposit maturity

🏦

PPF Calculator

Public provident fund

❓ Frequently Asked Questions about SIP

What is SIP and how does it work?+

SIP (Systematic Investment Plan) lets you invest a fixed amount in a mutual fund every month. Each instalment buys units at that day's NAV. Over time, you benefit from rupee-cost averaging (buying more units when markets dip) and compounding (returns earning returns). Even ₹500/month invested consistently for 20 years can grow significantly due to these twin forces.

How much will ₹5,000 SIP return in 10 years?+

At 12% annual return: Total invested = ₹6 lakh, Future Value ≈ ₹11.61 lakh, Estimated gain = ₹5.61 lakh. At 15% return: FV ≈ ₹13.93 lakh. Returns vary based on mutual fund performance — past returns don't guarantee future results.

Is SIP better than FD in India?+

For long-term goals (5+ years), equity SIPs have historically delivered 10–15% CAGR vs FD's 6.5–7.5%. SIP returns beat inflation; FD barely does. However, SIP is market-linked (higher risk), while FD offers guaranteed returns. For short-term needs or capital preservation, FD is better. For wealth creation over 7+ years, SIP is generally superior.

What is the formula used to calculate SIP returns?+

The standard formula is: FV = P × [(1+r)ⁿ − 1] / r × (1+r) where P = monthly investment, r = monthly rate (annual ÷ 1200), n = months. This is the future value of annuity-due formula — the same used by AMFI, Groww, Zerodha, and all major platforms. Inflation-adjusted real return = [(1+nominal) ÷ (1+inflation)] − 1.

How much SIP is needed to become a crorepati?+

At 12% annual return:
• ₹5,000/month × 25 years = ~₹94.8 lakh
• ₹7,000/month × 22 years = ~₹1.02 crore
• ₹10,000/month × 20 years = ~₹99.9 lakh
• ₹20,000/month × 15 years = ~₹1.01 crore
Use our Goal-based SIP tab above to calculate your exact number.

What is inflation-adjusted SIP return?+

Your SIP corpus may show ₹50 lakh on paper, but if inflation is 6% p.a., that ₹50 lakh will have the purchasing power of roughly ₹31 lakh in today's terms (over 10 years). Real return = [(1+nominal rate) ÷ (1+inflation rate)] − 1. At 12% nominal and 6% inflation, real return ≈ 5.66%. The calculator shows both values so you can plan realistically.

Can I stop or pause my SIP anytime?+

Yes. Most mutual funds allow you to pause SIP for 1–3 months or cancel it entirely without any penalty. Your invested corpus continues to stay in the fund and generate returns. Some AMCs offer SIP pause features via their app — useful during temporary cash crunches without breaking your long-term plan.

⚠️ Disclaimer: SIP returns shown are based on assumed constant annual returns and are estimates only. Mutual fund investments are subject to market risks. Past performance is not indicative of future returns. This calculator is for educational purposes only and does not constitute investment advice. Please consult a SEBI-registered investment advisor before making investment decisions.

Powered by Arthzo.com — India's trusted financial calculator platform.

SIP Calculator IndiaMutual Fund Returns