What return rate should I assume for my SIP in India?

The Nifty 50 has delivered approximately 12% CAGR over long periods. For a diversified equity mutual fund portfolio, 10–12% is a reasonable assumption for 10+ year horizons. For a mixed portfolio, use 8–10%. Avoid assuming more than 12% for long-term planning.

Does this SIP calculator account for inflation?

This calculator shows nominal (pre-inflation) returns. The corpus shown is in future rupees. To get an inflation-adjusted estimate, use a return rate that is 5–6% lower than your expected nominal return. For example, if you expect 12% returns and 6% inflation, use 6% to see the corpus in today's money.

What is the Wealth Multiplier shown in the results?

Wealth Multiplier = Final Corpus divided by Total Amount Invested. It shows how many times your money has grown. A Wealth Multiplier of 3x means for every ₹1 invested, you now have ₹3. Higher duration and higher return rates produce dramatically higher multipliers due to compounding.

Can I increase my SIP amount over time?

This calculator assumes a fixed monthly SIP. If you plan to increase your SIP each year (Step-Up SIP), the actual corpus will be significantly higher. A common strategy is to increase SIP by 10% each year in line with salary growth. As a rough estimate, a 10% annual step-up can nearly double the final corpus compared to a flat SIP over 20 years.

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SIP & Investment Growth Calculator

Q: What is the difference between SIP and lump sum investing?

A SIP involves investing a fixed amount every month, averaging out your purchase cost over time. A lump sum is a one-time investment. SIPs are better for salaried investors who invest from monthly income, while lump sums work well when you have a large amount available at once. This calculator supports both.

This free SIP calculator India edition shows exactly how your monthly investments compound over time — and how much of your final corpus is pure gains vs. money you put in.

SIP calculator India — see how your monthly SIP grows into a retirement corpus

Your Investment Plan

Monthly SIP Amount

₹

How much you invest every month (mutual funds, stocks, index funds)

One-time Lump Sum (optional)

₹

Any existing savings you are investing today. Enter 0 to skip.

Expected Annual Return: 12%

12%

Nifty 50 avg: ~12% · Large-cap funds: 11–13% · FD/debt: 6–8%

Investment Duration: 20 years

20 yrs

How many years you plan to keep investing

Final Corpus

₹1.99 Cr

Total value of your investments after 20 years

Total Invested

₹48L

your contributions

Total Gains

₹1.51 Cr

returns earned

Invested vs. Gains — where your wealth comes from

Invested 24% Gains 76%

How your corpus grows year by year

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Total Invested

₹48L

Your contributions

Wealth Multiplier

4.1x

Final ÷ invested

Gains Share

76%

Of final corpus

Annual Gain (last yr)

₹22L

Returns in final year

The Basics

How does SIP compounding work? (Behind this SIP calculator India)

A SIP (Systematic Investment Plan) is simply the practice of investing a fixed amount every month, regardless of market conditions. The real power isn’t the monthly amount — it’s what happens to that money over time through compounding: your returns earn their own returns, month after month, year after year.

The longer you stay invested, the more dramatic the effect. In the first decade, your contributions dominate. In the second and third decades, returns dwarf what you put in — often by 3–5× or more. This SIP calculator India shows that split — your contributions vs. your returns — year by year.

FV = P × [((1 + r)^n − 1) / r] × (1 + r)

Where P = monthly SIP, r = monthly return rate (annual ÷ 12), n = total months

₹20K/mo

at 12% for 10 years
= ₹46.5L
(invested ₹24L)

₹20K/mo

at 12% for 20 years
= ₹1.99 Cr
(invested ₹48L)

₹20K/mo

at 12% for 30 years
= ₹7.06 Cr
(invested ₹72L)

FIRE Connection

Using SIP to reach your FIRE Number

Your FIRE Number is a target. Your SIP is the engine that gets you there. If you know your FIRE Number (use the FIRE Number Calculator), you can work backwards — how much do you need to invest each month at your expected return to hit that target in your desired timeframe?

As a rule of thumb: the higher your savings rate, the faster you reach FIRE — not just because you are investing more, but because you are also spending less, which means a smaller FIRE Number. Increasing your SIP by ₹5,000/month can shave years off your FIRE timeline.

Frequently Asked Questions

Is 12% annual return realistic for a SIP in India?

The Nifty 50 has delivered approximately 12% CAGR over the last 20+ years. However, past returns don’t guarantee future performance. A diversified portfolio (index funds + mid/small cap + some debt) might deliver 10–13% over a long horizon. We recommend running the calculator at 10%, 12%, and 14% to see the range of outcomes rather than assuming a single number.

Should I increase my SIP every year?

Yes — this is called a step-up SIP or top-up SIP. Most mutual funds allow you to increase your SIP automatically by a fixed % each year. Even a 10% annual step-up dramatically increases your final corpus. For example, ₹20,000/month stepped up 10% yearly for 20 years gives roughly ₹3.9 Cr at 12% — vs. ₹1.99 Cr with no step-up.

Does this calculator include tax?

No. Long-term capital gains (LTCG) on equity mutual funds above ₹1.25 lakh/year is taxed at 12.5%. For long holding periods, this has a relatively small impact on total wealth since you only pay tax when you redeem units — and tax-loss harvesting can reduce the effective burden. Use this calculator for directional planning; consult a tax advisor for exact post-tax returns.

What is the difference between SIP and lump sum investing?

A lump sum invested today benefits from compounding on the full amount immediately — so it outperforms SIP if markets go up consistently. A SIP averages your purchase price (rupee-cost averaging) — so it performs better in volatile or falling markets. For most people, a combination works best: invest windfalls (bonus, gifts) as lump sums, and maintain a regular monthly SIP for discipline.

Should I pause my SIP during a market crash?

No — continuing your SIP during a crash is actually the best time to invest. When markets are down, your monthly SIP buys more units at a lower price. Many investors who paused their SIPs during 2020 missed the recovery rally. Staying invested consistently through all market cycles is one of the most powerful wealth-building behaviours.

Make your SIP work harder

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SIP & Investment Growth Calculator

How does SIP compounding work? (Behind this SIP calculator India)

Using SIP to reach your FIRE Number

Frequently Asked Questions

More Free FIRE Tools

Make your SIP work harder