PocketSIP Calculator
Estimate how much your monthly SIP or one-time lump sum investment could grow into over the years. Enter your monthly investment, expected annual return and time horizon; the calculator instantly shows the total invested amount, estimated returns and future value. Optional toggles let you model a yearly step-up and see the inflation-adjusted real value of your corpus.
Visual breakdown
Growth over time
Year-by-year invested amount vs future value
How SIP returns are calculated
SIP returns are computed using the future-value-of-an-annuity formula, assuming each instalment is invested at the beginning of the month (which is how Indian mutual funds treat SIPs). The monthly rate is the annual return divided by 12, and the number of periods is years × 12. Lump sum returns use the standard compound interest formula.
Formulas
Monthly SIP (annuity due, beginning of month):
Lump sum (compound interest):
where:
- P = monthly investment (SIP) or principal (lump sum)
- i = monthly interest rate = annual rate ÷ 12 ÷ 100
- n = total number of months = years × 12
- r = annual rate ÷ 100 (for lump sum)
- t = tenure in years (for lump sum)
Invested amount = P × n (SIP) or P (lump sum).
Estimated returns = Future Value − Invested Amount.
Inflation-adjusted real value = FV ÷ (1 + inflation)t.
For example, ₹10,000/month for 15 years at 12% p.a. (i = 0.01, n = 180) gives FV = 10,000 × [((1.01)180 − 1) / 0.01] × 1.01 ≈ ₹50.46 lakh. Invested = ₹18 lakh, returns = ₹32.46 lakh.
Worked example
₹10,000/month SIP at 12% for 15 years
- Monthly investment
- ₹10,000
- Annual return
- 12% p.a.
- Tenure
- 15 years (180 months)
- Total invested
- ₹18,00,000
- Estimated returns
- ₹32,45,760
- Future value
- ₹50,45,760
Same SIP with 10% annual step-up
- Monthly SIP year 1
- ₹10,000
- Step-up
- +10% each year
- Total invested (15 yrs)
- ~₹38,12,698
- Estimated returns
- ~₹48,71,151
- Future value
- ~₹86,83,849
Frequently Asked Questions
What is SIP and how does it work?
SIP (Systematic Investment Plan) is a method of investing a fixed amount in a mutual fund at regular intervals — usually monthly, on a pre-decided date. When you start a SIP, your bank auto-debits the amount and the mutual fund house allots units at that day's NAV (Net Asset Value). Over time, you build up a corpus that grows through compounding.
The big advantage of SIPs is rupee-cost averaging. When the market is high, your ₹10,000 buys fewer units; when the market is low, it buys more. You don't have to time the market — the average purchase cost smooths out over time. SIPs also instil investment discipline, because the money leaves your account before you can spend it.
What return rate should I use in the SIP calculator?
Use conservative, realistic expectations based on the asset class you're investing in. For Indian equity mutual funds (large-cap, flexi-cap, index funds), historical Nifty 50 returns suggest 11-13% p.a. as a reasonable long-term assumption. For mid- and small-cap funds, you can use 12-15% but with the understanding that volatility is higher. For balanced or hybrid funds, 9-11% is realistic, and for debt funds, 6-8%.
Avoid planning around 18-20%+ returns — those are possible in specific years but not sustainable over 10-15 year horizons. It's better to underestimate returns and be pleasantly surprised than to overestimate and miss your financial goals. The calculator above defaults to 12% which is a balanced assumption for a predominantly equity SIP.
What is a step-up SIP and why should I use one?
A step-up SIP (also called top-up SIP) automatically increases your monthly contribution by a fixed percentage each year — usually 5-10%, matched to your annual salary hike. So a ₹10,000/month SIP with a 10% step-up becomes ₹11,000/month in year 2, ₹12,100/month in year 3, and so on.
The compounding impact is significant. On a 15-year horizon at 12% returns, a ₹10,000 flat SIP builds a corpus of around ₹50 lakh. The same SIP with a 10% annual step-up builds roughly ₹1 crore — nearly double — because more money is invested earlier and compounds for longer. Most Indian fund houses and apps (Groww, Zerodha Coin, Kuvera, Paytm Money) support step-up SIPs natively, and many let you change the step-up percentage or pause it any time.
How does inflation affect my SIP returns?
Inflation quietly erodes the purchasing power of money over time. At 5% annual inflation, ₹1 crore today will buy only about ₹37 lakh worth of goods and services after 20 years. So a ₹1 crore retirement corpus in 2045 is not the same as ₹1 crore today.
The inflation toggle in the calculator above divides your nominal future value by (1 + inflation rate)years to show the real value in today's money. Always use this when planning long-term goals like retirement, a child's education or a home down payment — otherwise you'll under-save and discover the gap too late to fix it.
SIP vs lump sum — which is better?
For most retail investors, SIP is the better default. It spreads your investment over time, reducing timing risk through rupee-cost averaging, and it instils discipline. You don't need to predict where the market is heading — you just keep investing month after month.
Lump sum investing can outperform SIP in prolonged bull markets, because more money is exposed to the market from day one. But it requires either a windfall (bonus, inheritance, property sale) or accumulated savings, and it concentrates timing risk on a single entry point. If you do have a lump sum, consider a Systematic Transfer Plan (STP) — park the money in a liquid fund and transfer to equity in 6-12 equal monthly instalments. This gives you most of the lump sum benefit while smoothing entry risk.