Monthly SIP Calculator 2026: Plan Your Investments
Calculate your potential returns on mutual fund investments through a Systematic Investment Plan (SIP). Estimate your future wealth gain using the power of compounding.
SIP Returns Calculator
Adjust the sliders below to see how your monthly investments can grow over time. The calculator uses the standard compound interest formula for SIPs.
Systematic Investment Plan (SIP)
Wealth Creation Estimator
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds to investors, allowing them to invest small amounts periodically (weekly, monthly, quarterly) instead of making one lump-sum investment. It is similar to a recurring deposit but usually offers higher returns through equity or debt market exposure.
SIPs enforce financial discipline and help investors navigate market volatility by utilizing the concept of Rupee Cost Averaging. Over long periods, SIPs leverage the incredible power of compounding to build significant wealth.
How Does the SIP Calculator Work?
Our Monthly SIP Calculator 2026 uses the mathematical formula for the future value of an annuity. The formula used for calculating SIP returns is:
FV = P × [ (1 + i)^n - 1 ] / i × (1 + i)
FV = Future Value (Expected Amount)
P = Monthly Investment Amount (SIP)
i = Monthly return rate (Annual Rate / 12 / 100)
n = Total number of months (Years × 12)
Benefits of Investing via SIP
- Rupee Cost Averaging: When the market is high, you buy fewer units, and when the market is low, you buy more units. This averages out the cost per unit over time, protecting you from market crashes.
- Power of Compounding: The earlier you start, the more your money grows. Returns generated on your investments also earn returns in the subsequent years.
- Financial Discipline: An auto-debit from your bank account every month ensures you save and invest before you spend, cultivating a disciplined saving habit.
- Convenience: You can start a SIP with an amount as low as ₹500 per month. You can also stop, pause, or increase (Step-up SIP) the amount at your convenience.
Lumpsum vs SIP: Which is Better?
If you have a large amount of idle cash and the market is significantly down, a Lumpsum investment might yield better returns. However, timing the market perfectly is nearly impossible even for experts.
SIP, on the other hand, is ideal for salaried individuals who have a regular monthly income. It completely removes the emotional stress of timing the market and automates wealth creation over the long term.
Important Note on Mutual Fund Returns
The expected rate of return used in this calculator is an assumption based on historical performance. Mutual fund investments are subject to market risks. Past performance is not an indicator of future returns. Please read all scheme-related documents carefully before investing.
Frequently Asked Questions (FAQs)
What is the best monthly SIP amount to start with?
The "best" amount depends entirely on your financial goals, income, and expenses. However, most financial advisors recommend investing at least 20% of your monthly in-hand salary. You can start a SIP with as little as ₹500 per month in many mutual funds.
Are SIP returns guaranteed?
No, SIP returns are not guaranteed. Since mutual funds invest in market-linked instruments (like equity and debt), the returns fluctuate based on market performance. However, historically, equity mutual funds have delivered inflation-beating returns over long periods (10+ years).
How is SIP taxed in India (2026)?
Taxation depends on the type of mutual fund. For Equity funds, Short-Term Capital Gains (held < 1 year) are taxed at 20%, and Long-Term Capital Gains (held > 1 year) are taxed at 12.5% on gains exceeding ₹1.25 lakh per financial year. Debt funds are taxed as per your income tax slab regardless of the holding period.
Can I increase my SIP amount later?
Yes! This is known as a Step-Up SIP or Top-Up SIP. You can instruct your AMC to automatically increase your SIP amount by a fixed percentage (e.g., 10%) or a fixed amount (e.g., ₹1000) every year in line with your annual salary increments.
What happens if I miss a SIP payment?
If you miss a SIP payment due to insufficient funds in your bank account, the mutual fund company does not penalize you or deactivate your SIP. However, your bank might charge an ECS/NACH bounce fee (typically ₹250-₹500). If you miss 3 consecutive SIPs, the AMC will automatically cancel your SIP mandate.
Which is better: SIP or RD (Recurring Deposit)?
RDs offer fixed, guaranteed returns (usually 6-7%) and are entirely risk-free, making them suitable for short-term goals. SIPs in equity mutual funds carry market risk but have the potential to deliver much higher returns (10-15%), making them vastly superior for long-term wealth creation and beating inflation.
Can I withdraw my money from SIP at any time?
Yes, in most open-ended mutual funds, you can withdraw (redeem) your money at any time. However, if you invest in an ELSS (Equity Linked Savings Scheme) for tax-saving purposes under Section 80C, your investment is locked in for a period of 3 years from the date of each SIP installment.
Rohit Kushwaha
Software Engineer & Creator of mysalarycalculator.in
I'm Rohit Kushwaha, a Software Engineer with 3+ years of experience in developing web applications and digital solutions. By combining technology with practical financial tools, I built mysalarycalculator.in to help Indian professionals easily understand their salary, taxes, EPF, gratuity, and take-home income.
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