SIP return formula
FV = SIP × ((1 + i)ⁿ − 1) ÷ i × (1 + i)where i is the monthly rate (annual ÷ 12 ÷ 100) and n the number of months, assuming each SIP is invested at the start of the month.
Example
₹5,000 a month for 10 years at 12%: invested ₹6,00,000, value ≈ ₹11,61,695. Keep going for 20 years and the value becomes ≈ ₹49.9 lakh on ₹12 lakh invested — compounding does most of the work in the later years.
What is a step-up SIP?
A step-up (top-up) SIP increases your monthly amount by a fixed percentage every year, usually in line with salary hikes. A ₹5,000 SIP stepped up 10% a year for 20 years at 12% grows to about ₹1.0 crore versus ₹49.9 lakh without step-up — enter a step-up % above to see your own numbers.
Returns are not guaranteed. 12% is a common long-term assumption for equity funds; debt funds are closer to 6–8%. Use a conservative rate for goals you cannot postpone.
Have a lump sum instead? Try the lumpsum calculator. Planning withdrawals later? See the SWP calculator.