SIP Calculator that plans, not just calculates

To accumulate ₹1 crore at 12% expected annual return: ₹58,000/month for 10 years, ₹22,000/month for 15 years, ₹10,600/month for 20 years, or ₹6,000/month for 25 years. The longer the duration, the lower the required monthly amount — this is the power of compounding. Use the Goal mode in the calculator above to get a personalised SIP amount for any target.

For long-term wealth creation (10+ years), equity mutual fund SIPs have historically outperformed FDs. Bank FD rates in India are 6–7.5% p.a. (fully taxable at your income slab), while Nifty 50 SIPs have delivered 12–14% CAGR over rolling 10-year periods historically. However, SIP returns are market-linked and not guaranteed, unlike FD. For short-term goals (<3 years), FD is safer.

As per Union Budget 2024 (effective 23 July 2024), Long-Term Capital Gains (LTCG) on equity mutual funds held for more than 12 months are taxed at 12.5% on gains exceeding ₹1.25 lakh per financial year (up from 10% on ₹1 lakh previously). Debt mutual funds held for any period are now taxed at your income slab rate. This calculator shows a simplified LTCG estimate — consult a CA for exact tax liability.

PPF offers guaranteed, tax-free returns (~7.1% p.a., subject to quarterly government revision) with a 15-year lock-in and Section 80C deduction up to ₹1.5 lakh. Equity SIP has historically delivered 12–14% p.a. but returns are market-linked and not guaranteed. PPF suits risk-averse investors needing tax savings and guaranteed returns. Equity SIP suits long-term wealth creation with higher risk tolerance. Both can be used together in a diversified plan.

Only ELSS (Equity Linked Savings Scheme) mutual fund SIPs qualify for Section 80C deduction — up to ₹1.5 lakh per financial year, saving up to ₹46,800 in tax for those in the 30% slab. Regular equity, debt, hybrid, or index fund SIPs do not qualify for 80C. ELSS comes with a mandatory 3-year lock-in per SIP instalment (each instalment locks for 3 years from its investment date).

Start with what you can invest consistently — even ₹500–₹2,000/month. Consistency matters more than the amount. As your income grows, increase SIP by 10–15% annually using Step-Up SIP. A ₹1,000/month SIP for 30 years at 12% p.a. can grow to over ₹35 lakhs from ₹3.6 lakhs invested. The best time to start is today, even with a small amount.

Longer duration = exponential compounding. A Nifty 50 SIP over any 15-year period in history has delivered positive returns (per AMFI/WhiteOak data). The ideal duration is 10 years minimum for equity SIP. For 5 years, returns can be volatile. Key: any 10-year rolling period in Nifty 50 history gave 10–16% CAGR. Start early, stay long.

Yes. You can pause, reduce, increase, or stop a SIP at any time without penalty for open-ended mutual funds. Stopping a SIP does NOT redeem your units — your invested money stays in the fund and continues to earn returns. Only ELSS SIPs have a 3-year lock-in per instalment. You can redeem your units separately whenever you want (subject to exit load for first 1 year on most equity funds).

Step-Up SIP (also called SIP Top-Up) means automatically increasing your SIP by a fixed percentage every year. Example: ₹10,000/month with 10% annual step-up → ₹11,000 in Year 2, ₹12,100 in Year 3, and so on. Over 20 years at 12% expected return, a 10% annual step-up on ₹10,000 SIP can generate a corpus nearly 2x higher than a flat SIP. Use Step-Up mode above to calculate.

Rupee cost averaging means your fixed monthly SIP buys more mutual fund units when NAV is low and fewer when NAV is high. Over time, this averages out your cost per unit, reducing the risk of investing at market peaks. This is why SIPs don't require market timing — you benefit automatically when markets fall. It is one of the key advantages of SIP over lumpsum investing.

A common starting rule: multiply your expected annual expense at retirement by 25–30 (the "25x rule"). Example: needing ₹60,000/month at retirement (₹7.2L/year) requires a ₹1.8–2.2Cr corpus. But this must be adjusted for 6% Indian inflation from now to your retirement date. Use the Retirement Planner section above — it accounts for inflation and post-retirement expense growth automatically.

Missing a SIP payment does NOT close your SIP or impose a penalty from the fund house. However, your bank may charge a dishonour fee (typically ₹150–₹500) if there are insufficient funds. After 2–3 consecutive failures, some AMCs may automatically cancel the SIP mandate. Missing occasional payments reduces your final corpus but does not affect your existing investments in the fund.

Most financial planners recommend 3–5 SIPs maximum for a well-diversified portfolio. A simple allocation: 1 large-cap or Nifty 50 index fund, 1 mid-cap fund, 1 flexi-cap or multi-asset fund. Too many SIPs lead to over-diversification (owning the same stocks across multiple funds), making tracking difficult. Quality over quantity. Review and rebalance annually.

It depends on market timing and duration. If you invest a lumpsum at a market low, lumpsum beats SIP. If you invest at a market high, SIP wins due to rupee cost averaging. For most retail investors who cannot time markets, SIP is safer and more consistent for long-term wealth. For goal-based planning, SIP is recommended. Use the Smart Insights panel above to compare the two with your exact numbers.