SIP Calculator

It uses the future value of a monthly annuity: M = P × [((1+i)^n − 1) / i] × (1+i), where P is the monthly amount, i is the monthly return (annual ÷ 12) and n is the number of months.

Equity mutual funds have historically returned ~10–13% annually over long periods, though returns are not guaranteed. Debt funds are lower. Use a conservative figure and remember past performance does not predict the future.

No. The estimate is a gross figure. Actual returns are reduced by the fund’s expense ratio and by capital gains tax on redemption.

SIP spreads your investment into fixed periodic (usually monthly) instalments, which averages your purchase price over market ups and downs (rupee-cost averaging). Lump-sum invests the full amount at once — potentially higher return if markets rise steadily, but more exposed to bad timing.

Yes — many investors use a "step-up SIP," increasing the monthly amount periodically (e.g. annually with a salary hike) rather than a flat amount throughout. This calculator models a flat monthly amount; a step-up would compound to a higher maturity value than shown here.

You keep whatever units/value has already accumulated — there's typically no penalty for stopping (unlike closing some fixed deposits early), though you'll obviously get less than the full-duration maturity value shown by running the calculator for a shorter period.

It depends on your risk tolerance and horizon. FDs offer a guaranteed, lower return; equity SIPs have historically outperformed FDs over long (7+ year) horizons but carry market risk and can underperform FDs over shorter or badly-timed periods.

Equity SIPs are generally recommended for goals 5+ years away, since that horizon gives rupee-cost averaging and compounding more room to smooth out short-term market volatility — using one for a near-term goal carries more risk of redeeming during a downturn.