Calculate the maturity value of your Systematic Investment Plan (SIP). Enter your monthly investment, expected annual return rate, and investment duration to see total investment, estimated returns, and maturity amount.
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SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly — typically monthly — into a mutual fund scheme. It is the most popular investment approach in India for building long-term wealth, with over 7 crore active SIP accounts as of 2024. The monthly SIP amount is automatically deducted from your bank account and invested in your chosen fund at the prevailing Net Asset Value (NAV) on the specified date.
The core principle of SIP is rupee cost averaging — by investing the same amount every month regardless of market conditions, you automatically buy more units when prices are low and fewer units when prices are high. Over a long period, this averaging effect reduces the impact of market volatility and produces better returns than trying to time the market. SIP also enforces financial discipline by automating the savings process.
The most powerful aspect of long-term SIP investing is the compounding effect. Compounding means earning returns not just on your invested capital but also on the returns generated previously. The longer you stay invested, the more dramatically compounding works in your favour. A ₹10,000 monthly SIP at 12% annual returns for 10 years produces a maturity value of approximately ₹23 lakhs on a total investment of ₹12 lakhs — nearly double your investment. The same SIP continued for 20 years produces approximately ₹99 lakhs on a total investment of ₹24 lakhs — more than four times the investment. This exponential growth is entirely due to compounding working over time.
SIP returns are typically expressed as CAGR (Compound Annual Growth Rate) or XIRR (Extended Internal Rate of Return). XIRR is the more accurate metric for SIPs because it accounts for the timing of each cash flow — each monthly instalment is invested at a different time. Historically, diversified equity mutual funds in India have delivered 12–15% CAGR over long periods (10+ years), though past performance is not a guarantee of future returns. This calculator uses a constant annual return rate for simplicity; actual returns will vary based on market performance.
A lump sum investment puts all your capital to work immediately, which is advantageous in rising markets. SIP spreads your investment over time, which reduces risk in volatile or declining markets. For most individual investors, SIP is preferable because it removes the need to time the market, is compatible with regular income, and benefits from rupee cost averaging. For investors with a large corpus available (such as after a bonus or inheritance), a combination of both — a lump sum plus a monthly SIP — is often recommended by financial advisors.
A Step-up SIP (also called a Top-up SIP) allows you to increase your monthly SIP amount annually — typically by 10–15% per year, aligned with salary increments. Step-up SIPs significantly outperform flat SIPs because the increasing investment amount amplifies the compounding effect over time. This calculator assumes a constant monthly investment; for step-up SIP calculations, increase the monthly amount by your expected annual increment and recalculate.