SIP Return Calculator

Formula Used

This calculator uses a month-by-month compounding model. The net annual return equals expected annual return minus expense ratio. Monthly rate = Net Annual Return / 12.

For end-of-month investing, each month first earns growth, then adds the SIP contribution. For beginning-of-month investing, each month first adds the SIP contribution, then compounds it.

Annual step-up increases the monthly SIP by the chosen percentage every 12 months. Final gain = Future Value − Total Invested.

Estimated tax = Gain × Tax Rate. Net maturity = Future Value − Estimated Tax. Inflation-adjusted value = Net Maturity ÷ (1 + Inflation Rate)^Years.

How to Use This Calculator

Enter your monthly SIP amount.
Add expected annual return and investment duration.
Include step-up percentage for annual contribution increases.
Enter lumpsum, inflation, expense ratio, and gain tax if needed.
Select whether the SIP is invested at the beginning or end of each month.
Add a target corpus to estimate how many months it may take.
Click the calculate button to view metrics, yearly growth, and chart.
Use CSV or PDF buttons to export your results.

Input	Example Value
Monthly SIP Amount	10,000
Expected Annual Return	12%
Investment Duration	15 years
Annual SIP Step-Up	10%
Initial Lumpsum	50,000
Inflation Rate	5%
Expense Ratio	1%
Tax on Gains	10%
Contribution Timing	End of Month

FAQs

1. What does this SIP return calculator estimate?

It estimates invested amount, projected corpus, gains, taxes, real value after inflation, and yearly growth. It also shows target timing and a visual chart.

2. Why is step-up SIP important?

Step-up SIP raises contributions every year. This often matches salary growth and can significantly increase long-term wealth without requiring a very high starting amount.

3. What is contribution timing in this calculator?

Contribution timing decides whether the SIP is invested at the beginning or end of each month. Beginning-of-month investing gets one extra month of compounding.

4. Why include expense ratio?

Expense ratio reduces the effective annual return. Including it gives a more realistic projection because fund costs lower actual investor returns over time.

5. Does the calculator guarantee future returns?

No. It provides an estimate using your assumptions. Actual market performance, taxes, costs, timing, and fund selection can produce very different outcomes.

6. What does inflation-adjusted value mean?

It shows the future corpus in today’s purchasing power. A large maturity amount may buy less later, so this figure helps compare real wealth.

7. Can I use this tool for retirement planning?

Yes. It is useful for retirement, education, house down payment, or wealth building goals. Try multiple return and inflation assumptions for better planning.

8. What tax rate should I enter?

Enter the rate you want to apply on estimated gains. Since taxation differs by country, holding period, and asset type, use your applicable rate.