Calculators & Finance

SIP Calculator

Systematic investment plan returns, with step-up.

What it does. A SIP invests a fixed amount at a fixed interval regardless of price. Because the same amount buys more units when prices are low and fewer when high, the average cost per unit ends up below the average price over the period — the effect usually called rupee-cost or dollar-cost averaging.

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How to use SIP Calculator

Enter the monthly amount, expected return and duration.
Add an annual step-up if you plan to increase contributions.
Compare invested against projected value.

What cost averaging does and does not do

It genuinely lowers your average cost per unit relative to the average price, because more units are bought at low prices. That is arithmetic, not opinion.

What it does not do is beat investing a lump sum when you have one. Research consistently finds that investing a lump sum immediately outperforms spreading it, roughly two thirds of the time, simply because markets rise more often than they fall.

The honest case for a SIP is different and stronger: it matches how income arrives, it removes the timing decision, and it is a habit rather than a decision repeated monthly. Those are behavioural advantages and they are worth more than the arithmetic one.

Step-up is the underused lever

A SIP that rises 10% a year alongside your income ends up dramatically larger than a flat one, and the increase is barely noticeable because it tracks pay rises.

₹10,000 a month for 20 years at 12% reaches roughly ₹1 crore. The same SIP stepped up 10% annually reaches closer to ₹1.9 crore.

Nearly double, from an increase you never feel. If there is one thing to take from this tool, it is the step-up field rather than the return field.

The return figure is an assumption

SIP calculators conventionally default to 12%, which reflects long-run Indian equity averages. It is a historical average, not a promise, and no individual period is average.

Run it at 8%, 10% and 12% before making a plan around it.

Also note what the calculation ignores: expense ratios, exit loads and capital gains tax all reduce the real outcome, and none of them appear in a standard SIP projection.

Frequently asked questions

Is a SIP better than a lump sum?

Not on the arithmetic. Investing a lump sum immediately beats spreading it roughly two thirds of the time, because markets rise more often than they fall. A SIP wins on behaviour: it matches how income arrives and removes the timing decision.

What is a step-up SIP?

One where the contribution rises by a set percentage each year, usually alongside your income. ₹10,000 a month for 20 years at 12% reaches about ₹1 crore; stepped up 10% a year it reaches nearer ₹1.9 crore.

What return should I assume?

The conventional 12% default reflects long-run Indian equity averages, not a promise. Run the projection at 8%, 10% and 12% — the range is the honest answer.

Does this include fees and tax?

No. Expense ratios, exit loads and capital gains tax all reduce the real outcome and none appear in a standard SIP projection. Treat the figure as a ceiling.

What is rupee-cost averaging?

Buying a fixed amount regularly means more units when prices are low and fewer when high, so your average cost per unit falls below the average price over the period.