⚡ Quick Answer
A ₹5,000 monthly SIP for 10 years at 12% expected return grows to approximately ₹11,61,695. You invest ₹6,00,000 and gain about ₹5,61,695. With a 10% annual step-up, the same SIP grows to roughly ₹15,60,000 — about 34% more wealth.
Calculate SIP maturity value, wealth gained and returns from mutual fund investments — with optional annual step-up.
A ₹5,000 monthly SIP for 10 years at 12% expected return grows to approximately ₹11,61,695. You invest ₹6,00,000 and gain about ₹5,61,695. With a 10% annual step-up, the same SIP grows to roughly ₹15,60,000 — about 34% more wealth.
| Monthly SIP | 5 Years | 10 Years | 15 Years | 20 Years |
|---|---|---|---|---|
| ₹2,000 | ₹1,64,000 | ₹4,65,000 | ₹10,09,000 | ₹19,98,000 |
| ₹5,000 | ₹4,11,000 | ₹11,62,000 | ₹25,23,000 | ₹49,96,000 |
| ₹10,000 | ₹8,22,000 | ₹23,23,000 | ₹50,46,000 | ₹99,91,000 |
| ₹15,000 | ₹12,33,000 | ₹34,85,000 | ₹75,69,000 | ₹1,49,87,000 |
| ₹25,000 | ₹20,55,000 | ₹58,08,000 | ₹1,26,16,000 | ₹2,49,79,000 |
The longer you stay invested, the more dramatic the compounding. 20 years produces far more than 4x the 5-year value.
| Annual Step-Up | Maturity Value | Total Invested | Extra vs Flat SIP |
|---|---|---|---|
| 0% (flat) | ₹25,23,000 | ₹9,00,000 | — |
| 5%/year | ₹32,60,000 | ₹12,95,000 | +₹7,37,000 |
| 10%/year | ₹42,80,000 | ₹19,05,000 | +₹17,57,000 |
| 15%/year | ₹57,20,000 | ₹28,60,000 | +₹31,97,000 |
Stepping up your SIP as your salary grows dramatically increases your final corpus. Set the step-up field above to model this.
A Systematic Investment Plan (SIP) is a method of investing a fixed amount in mutual funds at regular intervals — usually monthly. Instead of investing a lump sum, you invest small amounts consistently, which brings two big advantages: rupee cost averaging (you buy more units when prices are low and fewer when high) and the power of compounding over time. SIPs are the most popular way for Indian retail investors to build long-term wealth.
The SIP maturity is calculated using the future value of an annuity formula: FV = P × [((1+i)ⁿ − 1) / i] × (1+i), where P is the monthly investment, i is the monthly return rate, and n is the number of months. A step-up SIP increases P by a set percentage each year. Use our compound interest calculator to understand the underlying growth.
Investing ₹5,000/month for 10 years at 12% return grows to approximately ₹11,61,695. Your total investment is ₹6,00,000, meaning you gained ₹5,61,695 — nearly doubling your money. Extending to 15 years more than doubles the corpus to ₹25,23,000, showing why time in the market matters more than timing the market.
A ₹5,000 monthly SIP for 10 years at 12% return grows to approximately ₹11,61,695. You invest ₹6,00,000 and gain about ₹5,61,695 through compounding.
You can start a SIP with as little as ₹500/month. A good target is 10-15% of your monthly income. Consistency and starting early matter most — even a small SIP in your 20s grows into a large corpus by retirement.
Equity mutual fund SIPs have historically delivered 10-14% annualised over the long term (10+ years). Debt funds return 6-8%. Use 12% as a realistic equity estimate, but returns are not guaranteed and markets are volatile short-term.
A step-up SIP increases your monthly investment by a fixed percentage each year (usually 10%), in line with salary growth. A ₹5,000 SIP stepped up 10% yearly for 10 years at 12% grows to about ₹15,60,000 vs ₹11,61,695 flat — roughly 34% more.
For long-term goals (5+ years), equity SIPs typically outperform FDs (10-14% vs 6-7%), though with higher risk. FDs offer guaranteed returns and suit short-term goals or emergency funds. SIPs win for long-term wealth creation.
Yes. For equity funds, gains above ₹1,25,000/year are taxed at 12.5% (long-term, over 1 year) or 20% (short-term). Debt fund gains are taxed at your slab rate. Each SIP instalment has its own holding period.
Yes. SIPs are flexible — pause, stop, increase or decrease anytime with no penalty. But stopping during downturns defeats rupee cost averaging. Staying invested through volatility is key to SIP success.
Time in the market beats timing the market. A ₹5,000 SIP started at 25 grows far larger by 60 than one started at 35 — compounding rewards the early years most.
Increase your SIP 10% each year as your salary grows. A stepped-up SIP can produce 30-40% more corpus than a flat SIP over 15 years — set the step-up field above to see.
Market dips are when SIP rupee cost averaging works best — you buy more units cheap. Stopping during a downturn locks in losses and defeats the whole strategy.
Use equity funds for long-term goals (5+ years) and debt/hybrid funds for shorter goals. Align each SIP to a specific goal — retirement, home, child's education.
Review your funds annually, but avoid switching frequently chasing past returns. Consistent, low-cost index or well-rated funds usually beat active churning.
A 12% return with 6% inflation is a 6% real return. Also plan for 12.5% LTCG tax on equity gains above ₹1.25L/year when calculating your true take-home corpus.