SIP Calculator

The calculator uses the standard SIP future-value formula: M = P × [((1 + i)^n − 1) / i] × (1 + i). Each monthly contribution earns the expected return compounded for the remaining number of months until maturity. Earlier contributions compound for longer, which is why the chart curves upward over time. With a step-up SIP, each year's contribution amount grows by the step-up percentage and is added to the running balance.

Diversified equity mutual funds have historically averaged around 12% annually over long horizons. Balanced (hybrid) funds tend to average 9-10%, while debt funds typically deliver around 7%. For conservative planning, use 10-12% for equity SIPs and 7-8% for debt SIPs. Remember: past performance is not indicative of future returns, and short-period returns can be much higher or much lower than these long-term averages.

A step-up SIP (also called top-up SIP) is one where you increase your monthly contribution by a fixed percentage every year — typically 5%, 10%, or 15%. As your income grows, your investment grows alongside it. Over 20 years, even a 10% annual step-up can grow your final corpus by 40-60% compared to a flat SIP of the same starting amount.

It depends on market conditions. A SIP averages out your purchase price and protects you from investing everything at a market peak — useful when markets are volatile or you don't have a lumpsum ready. A lumpsum invested at the start of a long bull market can outperform a SIP, because all of it compounds from day one. For most investors who are receiving income monthly, a SIP is simpler and emotionally easier to stick with for 10-20 years.

Yes. Most fund houses let you pause a SIP for 1-6 months without cancelling it, or stop it entirely at any time without a penalty. If you stop, your existing units remain invested and continue to earn returns; you just don't make new contributions. You can also redeem your existing units (subject to exit load and tax rules) whenever you need the money.