Skip to content

AMFI-registered MFD · ARN-286779

Free SIP calculator

SIP calculator: what will your savings grow to?

Enter what you can put away each month. See what it could grow to on real past returns, next to a recurring deposit.

Your numbers

₹ 10,000

Worked out at our model portfolio’s actual average return over the past 10 years, about 13% a year: four equity and two debt funds held 50:50. Not an assumed rate. Past performance may or may not be sustained in future.

Your result

Your ₹ 10,000 a month for 15 years grows to ₹ 52.6 lakh.

In a recurring deposit at 7%, taxed at 30%, the same savings grow to ₹ 26.6 lakh.

You put in
₹ 18 lakh
It grows to
₹ 52.6 lakh
After tax, if sold
₹ 47 lakh
Each yearYour SIPA recurring depositWhat you put in
0₹ 27.6 lakh₹ 55.2 lakhYear 5Year 10Year 15
How this is worked outShow

Month by month, with each fund in the model portfolio growing at its own average monthly return over the past 10 years. Each instalment is split across the funds by their share. Real returns go up and down, and the next 10 years could be quite different.

“After tax” is what you would keep if you sold everything at the end. Each instalment is taxed on its own gain: 20% for equity held 12 months or less, 12.5% after, and 30% for debt funds. The deposit earns 7%, with interest taxed at 30% every year. The yearly equity-gains exemption, cess and surcharge are not included. An illustration, not a forecast or a promise of returns.

Want us to check these numbers?

Leave your details and we will get in touch to set up a 20-minute review call. No product is named, and there is nothing to sign.

Or pick a time yourself

Used only to reply to you. Never sold or shared.

The basics

What is a SIP? Saving, on autopilot.

A systematic investment plan puts a fixed amount into mutual funds every month, straight from your bank account. You don’t have to remember, and you don’t have to time the market.

A SIP compared with a recurring deposit
CompareSIPRecurring deposit
How it growsWith markets, up and downFixed interest
TaxOnly when you sellInterest taxed every year
You canRaise, pause or stop it any timeUsually a fixed amount for a fixed term
Best forGoals five or more years awayMoney you need within a few years

A worked example

₹10,000 a month, year by year.

Say you put ₹10,000 a month into a SIP for 15 years: ₹ 18 lakh in all. On our model portfolio’s average past returns it grows to ₹ 52.6 lakh, or ₹ 47 lakh after tax if you sold it all at the end. The same amount in a recurring deposit grows to ₹ 26.6 lakh.

You put in
₹ 18 lakh
It grows to
₹ 52.6 lakh
After tax, if sold
₹ 47 lakh
A recurring deposit
₹ 26.6 lakh
A ₹10,000 monthly SIP over 15 years, year by year, next to a recurring deposit
YearYou’ve put inYour SIP is worthA recurring deposit
Year 1₹ 1.2 lakh₹ 1.28 lakh₹ 1.23 lakh
Year 2₹ 2.4 lakh₹ 2.71 lakh₹ 2.53 lakh
Year 3₹ 3.6 lakh₹ 4.32 lakh₹ 3.89 lakh
Year 4₹ 4.8 lakh₹ 6.14 lakh₹ 5.31 lakh
Year 5₹ 6 lakh₹ 8.19 lakh₹ 6.81 lakh
Year 6₹ 7.2 lakh₹ 10.5 lakh₹ 8.38 lakh
Year 7₹ 8.4 lakh₹ 13.1 lakh₹ 10 lakh
Year 8₹ 9.6 lakh₹ 16.1 lakh₹ 11.8 lakh
Year 9₹ 10.8 lakh₹ 19.5 lakh₹ 13.6 lakh
Year 10₹ 12 lakh₹ 23.3 lakh₹ 15.5 lakh
Year 11₹ 13.2 lakh₹ 27.7 lakh₹ 17.5 lakh
Year 12₹ 14.4 lakh₹ 32.7 lakh₹ 19.6 lakh
Year 13₹ 15.6 lakh₹ 38.5 lakh₹ 21.8 lakh
Year 14₹ 16.8 lakh₹ 45 lakh₹ 24.2 lakh
Year 15₹ 18 lakh₹ 52.6 lakh₹ 26.6 lakh

Values at the end of each year, before tax, on the model portfolio’s average past returns; the recurring deposit after tax on its interest. Past performance may or may not be sustained in future.

How to use it

The SIP calculator, in 4 steps.

  1. 1Enter what you can put away each month.
  2. 2Add a yearly increase if your income grows: a step-up SIP raises the amount once a year.
  3. 3Choose for how many years you’ll keep it going.
  4. 4Read the result: what it grows to, what you’d keep after tax if you sold, and a recurring deposit beside it. The chart shows every year.

How it’s worked out

The method, in plain English.

  • Each month’s amount buys units in each of the six funds in our model portfolio, split by its share, at that month’s price.
  • Each fund grows at its own average monthly return over the past 10 years: about 13% a year for the portfolio. Not a rate we assumed; real returns go up and down.
  • What your SIP is worth at any point is the units you hold times their price.
  • “After tax, if sold” taxes each instalment’s own gain: 20% on equity held 12 months or less, 12.5% after, 30% on debt funds. The yearly exemption, cess and surcharge are left out.
  • The recurring deposit earns 7% a year, with its interest taxed at 30% every year.

The textbook SIP formula

P × [((1 + i)ⁿ − 1) ÷ i] × (1 + i)

  • P: the monthly amount
  • i: the monthly return
  • n: the number of months

At 13% a year (1.03% a month), ₹10,000 for 180 months comes to ₹ 52 lakh, close to the month-by-month result of ₹ 52.6 lakh. The calculator works month by month because real returns aren’t steady.

Start sooner

Waiting five years costs more than you think.

On the same past returns, ₹10,000 a month:

Started now, for 15 years
₹ 52.6 lakh
Started five years later, for 10 years
₹ 23.3 lakh

Past performance may or may not be sustained in future.

Saving for something specific?

Find what your goal will really cost, and the monthly amount that gets you there.

Use the goal calculator

FAQs

Your questions about SIPs.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

What is a SIP?
A systematic investment plan puts a fixed amount into a mutual fund every month, automatically, from your bank account. Each instalment buys units at that day’s price: more units when prices are low, fewer when they are high.
Is a SIP better than a recurring deposit?
It depends on when you need the money. An RD’s value never falls, but its interest is taxed every year. A SIP into a mix of funds goes up and down with markets, has more room to grow over many years, and is taxed only when you sell. For goals five or more years away, many people choose a SIP; for money needed within a few years, an RD or FD is usually the better fit.
How much should I invest every month?
Start from the goal, not the amount. Our goal calculator works out what your goal will cost in the year you need it, and the monthly amount that gets you there.
What is a step-up SIP?
A SIP that increases every year, usually in line with your income. Over fifteen or twenty years, even a modest yearly increase makes a large difference. Try 10% in the calculator above.
Can I stop or pause a SIP?
Yes. You can stop a SIP at any time, and many fund houses let you pause one for a few months. The units you have already bought stay invested. Some funds charge an exit load if you sell within a set period after buying.
How is a SIP taxed?
Each instalment counts as a separate purchase, and tax is due only when you sell. Gains on equity funds are taxed at a lower rate once the units are held for more than a year; gains on debt funds at your slab rate. This calculator uses 20% and 12.5% for equity and 30% for debt. Tax rules change with budgets, so check the current rates with your CA.
What returns does this calculator use?
Each fund in our model portfolio, four equity funds and two debt funds held 50:50, grows at its own actual average return over the past 10 years: about 13% a year for the portfolio as a whole. Not a rate we assumed. Past performance may or may not be sustained in future, and the next 10 years could be quite different.
What is the SIP formula?
At a steady return, a SIP grows to P × [((1 + i)^n − 1) ÷ i] × (1 + i), where P is the monthly amount, i the monthly return and n the number of months. Real returns are not steady, so this calculator works month by month instead; at a constant rate the two give the same answer.
Does the result include tax?
Both ways. “It grows to” is the value before tax; “After tax, if sold” is what you would keep if you sold everything at the end, with each instalment taxed on its own gain. The recurring deposit beside it has its interest taxed every year, as a deposit’s is.
Why does a SIP grow faster in its later years?
Because returns are earned on returns. In the early years most of the value is what you put in; later, the growth on years of earlier instalments adds more each year than the instalments themselves. That is also why starting later costs so much.
How much SIP do I need for ₹1 crore?
On our model portfolio’s average past returns, about ₹ 46,700 a month for 10 years, ₹ 21,300 for 15 years, or ₹ 10,300 for 20 years, after tax if you sold at the end. Past performance may or may not be sustained in future; the goal calculator works it out for any amount and date.
Step-up SIP or a normal SIP?
A step-up SIP raises the amount once a year, usually with your income. It lets you start smaller and still reach the same goal, because later, larger instalments do more of the work. Set the yearly increase above to see the difference.

More calculators

Your next question, worked out the same way.

Readiness checkAm I ready to retire?Nine quick questions on the basics. Your score, and the three gaps to close first.Find out RetirementHow much do I need to retire?From your expenses today to the amount you need, and what to save each month.Find out GoalsWhat will my goal cost?A goal’s cost when you need it, and the monthly amount that gets you there.Find out SWPHow long will my withdrawal last?A monthly income from your funds: how long it lasts, the tax, what is left.Find out Retirement incomeHow much can I draw each month?The most your savings can pay you every month, rising every year.Find out Business cashWhat is my idle cash earning?Your company’s cash held as margin, and how much isn’t needed for 90 days.Find out

Your next step

Know your money will do what you need it to.

  • Twenty minutes, on your own numbers
  • Online or in person
  • Nothing sold
Book a review call