Brokerji — Your Finance & Stock Market Guide

SIP Calculator

Calculate returns on your Systematic Investment Plan — instantly and accurately

Monthly SIP Amount
₹500₹2L/mo
Expected Return (p.a.)
%
1%30%
Time Period
Yr
1 Yr40 Yrs
Total Maturity Value
₹11,61,695
Invested 52%
Est. Returns 48%
Total Invested
₹6,00,000
Est. Returns
₹5,61,695

SIP Growth Over Time

Year-wise SIP Growth Summary

YearAmount InvestedTotal ValueGain

What is a SIP Calculator?

A SIP calculator is a free online tool that helps you estimate the future value of your Systematic Investment Plan (SIP) in mutual funds. By entering your monthly investment amount, expected annual return, and investment duration, the SIP calculator instantly shows you how much your money can grow over time.

The BrokerJi SIP calculator is designed for Indian investors and displays results in the Indian number format (lakhs and crores), making it easy to understand your wealth creation potential at a glance.

How to Use the BrokerJi SIP Calculator

Using this online SIP calculator is simple — just adjust three inputs:

  • Monthly SIP Amount: The fixed amount you plan to invest every month (e.g. ₹500, ₹5,000, ₹50,000)
  • Expected Return Rate: The annual return you expect from your mutual fund (historically 10–15% for equity funds)
  • Time Period: How many years you plan to stay invested (longer = more compounding power)

The SIP return calculator updates in real time as you move the sliders, so you can instantly compare different investment scenarios without clicking any button.

SIP Calculator Formula

The SIP calculator uses the standard future value of annuity formula:

M = P × [ (1 + r)ⁿ − 1 ] ÷ r × (1 + r)

M = Maturity Amount
P = Monthly SIP amount
r = Monthly rate of return (annual rate ÷ 12)
n = Total number of months (years × 12)

Example: A monthly SIP of ₹5,000 at 12% p.a. for 10 years gives a maturity value of approximately ₹11.6 lakhs on a total investment of ₹6 lakhs — meaning your money nearly doubles through the power of compounding.

What is SIP (Systematic Investment Plan)?

A Systematic Investment Plan or SIP is a disciplined method of investing a fixed amount in a mutual fund scheme at regular intervals — typically monthly. SIP investing became popular in India because it suits salaried investors who want to build wealth gradually without needing a large lump sum.

SIPs work on the principle of rupee cost averaging — when markets fall, your fixed SIP amount buys more units; when markets rise, you buy fewer units. Over time, this averages out your purchase cost and reduces timing risk significantly.

Benefits of SIP Investment

  • Start small: SIPs can be started with as little as ₹100–₹500 per month in many mutual funds
  • Rupee cost averaging: Automatically buys more units when markets are low, reducing overall average cost
  • Power of compounding: Returns get reinvested, generating returns on returns over long periods
  • Flexible: You can pause, increase, decrease, or stop your SIP anytime in most open-ended funds
  • Tax efficient: ELSS SIPs qualify for ₹1.5L tax deduction under Section 80C
  • Automated: Monthly SIP amount is auto-debited from your bank account — no manual action needed

SIP vs Lumpsum — Which is Better?

SIP Investment

Best for salaried investors. Averages out market volatility. Starts with small amounts. Builds discipline over time. Ideal for goals 5+ years away.

Lumpsum Investment

Best when markets have corrected. Entire capital compounds from day one. Requires a large idle surplus. Sensitive to market timing.

Many experienced investors use both strategies: a monthly SIP for regular income and a lumpsum investment during significant market corrections. Use our Lumpsum Calculator to compare the two approaches side by side.

SIP Returns by Investment Duration

Here's what a monthly SIP of ₹5,000 at 12% p.a. can grow to over different time horizons — calculated using this SIP calculator:

  • 5 years: ₹60,000 invested → ₹4.08 lakhs
  • 10 years: ₹6 lakhs invested → ₹11.6 lakhs
  • 15 years: ₹9 lakhs invested → ₹25 lakhs
  • 20 years: ₹12 lakhs invested → ₹49.9 lakhs
  • 30 years: ₹18 lakhs invested → ₹1.76 crores

This table illustrates why financial advisors consistently stress starting your SIP early — the last 10 years of a 30-year SIP generate more wealth than the first 20 years combined.

Which Mutual Funds are Good for SIP?

The right fund depends on your risk appetite and investment horizon. Here are general categories suitable for SIP investing:

  • Large Cap Funds — Lower risk, stable 10–12% returns, best for 5+ year SIPs
  • Flexi Cap / Multi Cap Funds — Balanced exposure, suitable for most investors
  • Mid Cap Funds — Higher growth potential, higher volatility, ideal for 7+ year SIPs
  • Index Funds (Nifty 50 / Sensex) — Low cost, market-matching returns, great for beginners
  • ELSS Funds — Tax saving under 80C with only 3-year lock-in; best tax-saving SIP option

Note: This SIP calculator provides estimates based on a fixed assumed rate. Actual mutual fund returns vary based on market conditions and fund performance. Past returns are not guaranteed.

Frequently Asked Questions about SIP

What is the minimum SIP amount I can start with?
Most mutual funds allow SIP investments starting from ₹100 to ₹500 per month. Some funds have a minimum of ₹1,000. There is no upper limit on SIP amounts.
Can I stop my SIP anytime?
Yes. For open-ended mutual funds, you can pause or stop your SIP at any time without penalty. ELSS funds are an exception — each SIP instalment has a 3-year lock-in from the date of investment.
Is SIP safe? Can I lose money?
SIP in equity mutual funds carries market risk. In the short term (1–3 years), your returns can be negative. However, historically, equity SIPs held for 7+ years in diversified funds have rarely generated negative returns in India. Debt fund SIPs carry lower risk but also lower returns.
Is SIP return tax free?
Not entirely. For equity mutual funds, gains above ₹1 lakh per year held for more than 12 months are taxed at 10% (LTCG). Short-term gains (within 12 months) are taxed at 15% (STCG). ELSS SIPs qualify for ₹1.5L deduction under Section 80C but maturity gains are taxable above ₹1L.
How is SIP different from RD (Recurring Deposit)?
An RD offers guaranteed returns (typically 6–7% p.a.) with no market risk. A SIP in equity mutual funds offers no guaranteed return but has historically delivered 10–15% p.a. over long periods. RD is suitable for short-term goals; SIP is better for long-term wealth creation.
What is a Step-Up SIP?
A Step-Up SIP (also called Top-Up SIP) lets you increase your SIP amount by a fixed percentage every year — typically 10–15% annually. This is powerful because your SIP grows with your income, and even a 10% annual step-up can significantly boost your final corpus compared to a flat SIP.
How does this SIP calculator work?
This SIP calculator uses the future value of annuity formula: M = P × [(1+r)ⁿ - 1] / r × (1+r), where P is monthly investment, r is monthly rate (annual ÷ 12), and n is total months. Results update in real time as you adjust the sliders.
Join Us on Our YouTube Channel

error: