SIP Calculator
Plan your systematic investment and estimate returns
Increase your SIP amount annually by this percentage
What is a Systematic Investment Plan (SIP) & How Does It Work?
A Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds allowing investors to contribute a fixed sum regularly (monthly, quarterly, or weekly) into a chosen mutual fund scheme.
SIP eliminates the need to time the stock market through Rupee Cost Averaging — purchasing more fund units when market prices are low and fewer units when prices are high. Over long market cycles (7 to 15+ years), regular disciplined contributions combined with compound interest create exponential wealth growth.
Our SIP Calculator features advanced Step-Up SIP modeling (increasing your investment annually in line with salary increments) and XIRR computations to give you realistic, actionable projections for your financial goals.
Mutual Fund SIP Key Guidelines & Parameters
| Parameter | Details & Guidelines |
|---|---|
| Minimum Investment | ₹500 per month (some micro-SIPs start at ₹100/month). |
| Deposit Frequencies | Monthly (most popular), Weekly, or Quarterly installments. |
| Step-Up / Top-Up Option | Annual increment (e.g., +10% each year) to match career salary hikes. |
| Holding Tenures | Flexible — can be continued indefinitely or stopped anytime without penalty. |
| Equity Taxation (FY 2024-25+) | Long-Term Capital Gains (LTCG > 1 year) taxed at 12.5% on gains exceeding ₹1.25 Lakh/year. Short-Term Capital Gains (STCG) taxed at 20%. |
| Lock-in Period | Zero lock-in for open-ended equity/debt funds. 3-year mandatory lock-in for ELSS tax-saving funds. |
SIP vs Lumpsum vs Recurring Deposit (RD)
SIP (Systematic Investment Plan)
Ideal for salaried earners investing from monthly income. Averages out market volatility and builds long-term wealth at 12%–14% historical CAGR.
Lumpsum Mutual Fund
Best when you receive bonus, gratuity, or asset sale proceeds. Maximizes time in the market when deployed during market corrections.
Try Lumpsum Calculator →Recurring Deposit (RD)
Guaranteed fixed return (6.5%–7.2%) with zero equity risk. However, returns are fully taxable at your income tax slab, offering lower post-tax real returns.
Compare RD vs SIP →