Skip to tool content
Toolioz logoToolioz

SIP Return Calculator 2026

A systematic investment plan adds a fixed amount on a schedule and compounds each contribution. This calculator projects future value, amount invested, and estimated gain, including an optional annual step-up.

⚠️ Disclaimer: Returns shown are hypothetical projections based on assumed rates of return. Mutual fund investments are subject to market risks. Past performance does not guarantee future results. This tool is for assumption & planning purposes only.
₹
%
years
%

Step-up raises the monthly amount by this percent each year. Zero keeps a regular SIP.

Estimated Maturity Value

₹0.00
Total Invested₹6,00,000.00
Est. Returns-₹6,00,000.00

A Systematic Investment Plan (SIP) is a disciplined way to invest in mutual funds. Equity SIPs have historically delivered 12–15% CAGR over 10+ years, while debt fund SIPs average 7–8%. Past performance is not indicative of future results.

Year-by-Year Growth

YearTotal InvestedEst. ValueGains
1₹60,000.00₹64,046.64₹4,046.64
2₹1,20,000.00₹1,36,216.00₹16,216.00
3₹1,80,000.00₹2,17,538.24₹37,538.24
4₹2,40,000.00₹3,09,174.17₹69,174.17
5₹3,00,000.00₹4,12,431.83₹1,12,431.83
6₹3,60,000.00₹5,28,785.15₹1,68,785.15
7₹4,20,000.00₹6,59,894.99₹2,39,894.99
8₹4,80,000.00₹8,07,632.83₹3,27,632.83
9₹5,40,000.00₹9,74,107.53₹4,34,107.53
10₹6,00,000.00₹11,61,695.38₹5,61,695.38

💸 Tax Implications on SIP Returns (2026-27)

Equity Mutual Funds

  • LTCG (Long Term): If held for >1 year, gains above ₹1.25 Lakh are taxed at 12.5%.
  • STCG (Short Term): If sold within 1 year, gains are taxed at a flat 20%.
  • Strategy: Plan your redemptions to stay under the ₹1.25L annual limit to pay zero tax.

Debt Mutual Funds

  • Taxation: All gains from debt funds (SIP or Lumpsum) are added to your income and taxed as per your Income Tax Slab.
  • No LTCG benefit: Since April 2023, debt funds no longer enjoy indexation or 20% flat tax benefits.
  • Indexation: Only applicable to non-equity oriented funds bought before April 1, 2023.

Financial & Tax Advice Disclaimer

This tool is provided strictly for educational, planning, and illustrative purposes. All figures, estimates, compounding formulas, and tax calculations are based on user input parameters and current mathematical models.

No Performance Guarantee & Liability: Output calculations do not guarantee future returns, exact bank interest payouts, market gains, or legal tax liability. Toolioz and its maintainers accept no legal or financial liability for investment losses, loan commitments, or tax penalties resulting from the use of this calculator.

Always consult a certified financial planner, registered investment advisor, or Chartered Accountant (CA) before taking financial action.

How this SIP projection is built

The figures below use the same monthly compounding formula as the calculator.

Key SIP Terms

  • •Monthly rate: The annual percent is divided by 12. A 12% input is 1% per month.
  • •Payment timing: The extra (1 + i) treats each installment as paid at the start of the month.
  • •Step-up: Each year's 12 installments are compounded, then grown for the months that remain.
  • •Not a fund return: NAV, expense ratio, exit load, and XIRR are not inputs.

What this projection leaves out

  • •One rate: The projection uses a single annual return. It does not model a market drop or a fund's past return.
  • •No unit prices: Rupee-cost averaging is not simulated. Every installment compounds at the same monthly rate.
  • •Table limit: The year-by-year table stops at 30 years even when the term is longer.
  • •Step-up: A value above zero raises the monthly amount once a year. Zero keeps it flat.

Worked examples at 12%

  • ✅Timing: Each installment is treated as paid at the start of the month. A calendar date is not an input.
  • ✅12% comparison: ₹500 a month for 30 years finishes near ₹17.6 lakh. ₹5,000 a month for 10 years finishes near ₹11.6 lakh.
  • ✅Not included: Expense ratio, tax, and a switch from equity to debt are not subtracted or modeled.
  • ✅₹1 crore at 12%: About ₹43,040 a month for 10 years. With a 10% yearly step-up, about ₹29,640 a month.
  • ✅Default example: ₹5,000 a month for 10 years at 12% invests ₹6,00,000 and finishes near ₹11.6 lakh.

Explore Related Tools

Car Loan EMI

Reducing-balance car-loan EMI, total interest, and total amount payable.

Try tool

Compound Interest

Future value with daily, monthly, quarterly, or annual compounding.

Try tool

Discount After Tax

Break down sale savings, tax on the reduced price, and the final amount.

Try tool
Quick Summary & Direct Answer
Personal Finance

How much monthly SIP reaches ₹1 crore in 10 years?

At a constant 12% annual return, compounded monthly with each installment at the start of the month, about ₹43,040 a month for 10 years reaches ₹1 crore. A 10% yearly step-up reaches the same total from about ₹29,640 a month.

Key Takeaways

  • SIP formula — M = P × [((1 + i)^n − 1) / i] × (1 + i), with i = annual rate / 12 and n = months.
  • 10% step-up at 12% for 10 years lowers the starting monthly amount from about ₹43,040 to about ₹29,640, roughly 31%.
  • The calculator does not subtract an expense ratio or tax.
  • The year-by-year table stops at 30 years.

Frequently Asked Questions

A systematic investment plan invests a fixed sum on a schedule, usually monthly. Each installment is compounded for the time it remains invested.

At a constant 12% annual return, compounded monthly with each installment at the start of the month, about ₹43,040 a month for 10 years reaches ₹1 crore. A 10% yearly step-up reaches the same total from about ₹29,640 a month. A different return changes both amounts.

A step-up SIP increases the monthly amount by a fixed percentage each year. A 10% annual increase is a common illustration.

Direct plans omit distributor commissions, so the expense ratio is lower. Over long periods that difference compounds into a larger corpus than a regular plan with the same fund.

This calculator does not subtract tax or an expense ratio. Equity long-term capital gains rules should be checked against current Income Tax Department guidance before a filing decision.

Publisher notes · reviewed 10 September 2026

How this SIP calculator actually works

The Toolioz SIP calculator projects the future value of equal monthly contributions using a monthly compound annuity, not a promised mutual-fund return. Changing the rate by two percentage points moves a ten-year plan by lakhs of rupees, which is why every figure on the page is tied to the inputs above.

What the number on screen is

A systematic investment plan (SIP) is a series of cash flows, usually monthly, into a mutual fund folio. The calculator does not look up live NAVs. It treats the expected annual rate as a constant and compounds it monthly. That is the same family of formula used in textbook future-value-of-an-annuity problems, with one extra (1 + i) factor so that each contribution is treated as being invested at the start of the month (annuity-due).

If the monthly rate i is zero, the tool simply multiplies the monthly amount by the number of months. Otherwise it uses M = P × [((1 + i)^n − 1) / i] × (1 + i), where P is the monthly contribution, i is the annual rate divided by 12, and n is years × 12. Step-up mode rebuilds the same annuity year by year, increasing P after each 12 months.

A worked check you can repeat by hand

Take ₹5,000 a month for 10 years at 12% a year. Then i = 0.01 and n = 120. Total invested is ₹6,00,000. The formula gives a projected value of about ₹11.62 lakh before tax, expense ratio, and exit load. Drop the rate to 10% and the same cash invested finishes near ₹10.33 lakh. The gap is not a rounding bug; it is compounding on a different i.

XIRR on a real folio will differ because NAVs jump, SIPs skip months, and dividends or STP switches change cash-flow dates. Use this page to size a contribution. Use the fund house statement and an XIRR function when you need a historical rate of return.

Tax and cost that the projection omits

Equity mutual fund units sold in India are currently taxed as short-term or long-term capital gains depending on holding period, with a stated annual LTCG exemption threshold that must be read from the Income Tax Department, not from this page. The calculator shows pre-tax corpus. Expense ratios also reduce the rate you actually earn: a 1% extra annual cost is closer to using 11% than 12% in the box above.

Direct plans omit distributor commission that regular plans embed in the expense ratio. Over 15 to 20 years that gap is visible in the same formula. None of this is personalised tax advice.

Worked examples

  • ₹10,000 a month for 15 years at 12%

    Invested capital is ₹18 lakh. The same annuity-due formula with n = 180 and i = 0.01 projects a little over ₹50 lakh before tax. A 10% annual step-up on the same starting P raises both invested capital and the ending value; the extra cash is new contributions, not free return.

Limits of this page

  • The rate is an assumption, not a fund trailing return or a guaranteed yield.
  • Cash flows are assumed on a fixed monthly grid with no missed SIPs.
  • Inflation, tax, load, and expense ratio are not subtracted unless you lower the rate yourself.

Sources