SIP Calculator
Calculate SIP returns with step-up, CAGR, charts, and year-wise breakdown.
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Year-wise Breakdown
SIP Calculator – Systematic Investment Plan Returns
A SIP (Systematic Investment Plan) allows you to invest a fixed amount at regular intervals, typically every month, to build long-term wealth through compounding. This SIP Calculator helps you estimate the final corpus, total invested amount, returns, and CAGR based on your monthly investment, expected return, and investment duration.
You can also model annual SIP step-up, continue staying invested after SIP stops, and optionally view inflation-adjusted (real) returns.
How does the SIP Calculator work?
The calculator assumes you invest a fixed amount periodically (monthly by default). Each contribution compounds for a different duration depending on when it is invested. Earlier investments grow for longer, while later ones grow for shorter periods.
The calculator:
- Simulates investments period-by-period
- Applies compounding at the expected annual return
- Increases SIP amount annually if step-up is enabled
- Continues compounding during the “stay invested” phase
- Optionally adjusts results for inflation
What is SIP Step-Up?
SIP Step-Up allows you to increase your monthly investment every year, usually in line with salary growth.
- Monthly SIP: ₹10,000
- Step-Up: 10% annually
Your SIP increases to ₹11,000 in year 2, ₹12,100 in year 3, and so on. This can boost long-term wealth without increasing the early burden.
Nominal vs Inflation-Adjusted Returns
Nominal returns show how much money you accumulate in the future.
Inflation-adjusted (real) returns show the purchasing power of that money in today’s terms.
When inflation adjustment is enabled, the calculator reduces the displayed values using the selected inflation rate to reflect real value.
SIP vs Lump Sum Investment
| SIP | Lump Sum |
|---|---|
| Invests gradually | Invests all at once |
| Reduces timing risk | Sensitive to market timing |
| Encourages discipline | Requires capital upfront |
| Suitable for salaried investors | Suitable for surplus funds |
SIP is commonly used for long-term goals such as retirement, education, or wealth creation.
Frequently Asked Questions (FAQs)
How does a SIP calculator work for monthly investment?▼
A SIP calculator estimates returns by simulating monthly investments that compound over time. Each monthly contribution grows for a different duration, and the final corpus depends on the investment amount, expected return, and investment period.
What is a SIP calculator with step-up?▼
A SIP calculator with step-up allows you to increase your monthly SIP amount every year. This helps investors align investments with income growth and can significantly increase long-term wealth creation.
Can a SIP calculator show inflation-adjusted returns?▼
Yes. A SIP calculator with inflation adjustment shows real returns by reducing nominal returns using an assumed inflation rate. This reflects the future purchasing power of your investments.
Is SIP better than lump sum investment?▼
SIP reduces market timing risk by spreading investments over time, while lump sum investments depend heavily on entry timing. SIP is generally preferred for long-term, disciplined investing.
How accurate is a SIP returns calculator?▼
A SIP returns calculator provides estimates based on assumed rates of return. Actual returns may vary depending on market performance and fund selection.
Disclaimer
This SIP calculator provides estimates only. Actual returns may vary based on market conditions. This tool does not constitute financial advice.