Work out what a monthly SIP in mutual funds grows to over time, including an optional annual step-up if you plan to increase your contribution each year, and an inflation adjustment to see the result in today's money.
A SIP's maturity value is calculated as M = P × [((1 + r)^n − 1) / r] × (1 + r), where P is the monthly instalment, r is the monthly rate (annual return ÷ 12 ÷ 100) and n is the number of instalments. When a step-up percentage is applied there is no closed form, so this calculator accumulates the corpus month by month and raises the instalment on each anniversary.
For diversified equity mutual funds in India, 10–15% per annum is a common long-term planning assumption. Returns are not guaranteed and vary with market conditions, so it is worth running the calculation at a lower rate as well to see how sensitive your plan is.
A step-up (or top-up) SIP increases your monthly instalment by a fixed percentage every year, usually to track salary growth. Because the later, larger instalments still compound, a modest 10% annual step-up can raise the final corpus substantially compared with a flat SIP.
The inflation-adjusted value divides the maturity amount by (1 + inflation rate)^years to express the corpus in today's purchasing power. It answers what the money would actually buy at maturity rather than what the nominal number looks like.
No. The projection is on gross returns. Fund expense ratios reduce the effective return — you can approximate this by entering a slightly lower rate — and capital gains tax applies on redemption, which the separate capital gains calculator on this site covers.
This calculator is for information only and is not investment, tax, or financial advice. Figures are estimates based on the assumptions you enter and are not a guarantee of future returns. Consult a SEBI-registered adviser or a qualified tax professional before acting.