How the SIP calculator works
A SIP, or systematic investment plan, invests a fixed amount in a mutual fund every month. The calculator invests each instalment at the start of the month and grows it at the monthly rate equivalent to the yearly return you assume:
FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i)
- P is the monthly SIP, n the number of monthly instalments.
- i is the monthly rate: (1 + yearly return)^(1/12) − 1, so 12% a year means 12% compounded over the year, not 1% simple interest each month.
Take the calculator's starting figures: ₹10,000 a month for 15 years at an assumed 12% a year. You invest ₹18 lakh, and the estimated value is ₹47.59 lakh, a gain of ₹29.59 lakh. At 6% inflation, that value is worth about ₹19.86 lakh in today's money.
Step-up SIP: raising the SIP every year
Most people's income rises over time, and a step-up SIP raises the instalment with it. In the same example, raising the ₹10,000 SIP by 10% every year means investing ₹38.13 lakh in all, with the instalment reaching ₹37,975 a month in the last year. The estimated value rises to ₹82.75 lakh, against ₹47.59 lakh with a flat SIP.
Planning a SIP for a goal
Switch the calculator to SIP I need for a goal and enter the amount you want and when. For ₹1 crore in 15 years at an assumed 12% a year, the SIP is about ₹21,100 a month, or about ₹12,100 a month to start if you step it up by 10% every year.
Two things change the answer more than people expect. Time: starting five years earlier cuts the SIP needed far more than a slightly higher return does. And inflation: at 6% a year, ₹1 crore in 15 years buys what about ₹41.73 lakh buys today, so set the goal in future rupees, not today's.
What return to assume
The return is the biggest assumption in the calculator, and no fund earns a steady rate every year. Equity funds can fall for long stretches; debt funds move less but earn less. A useful habit is to run the calculator at two or three rates rather than one.
For reference, over the three years to October 2026 the median aggressive hybrid fund returned 10.2% a year and the median balanced advantage fund 8.9%, from AMFI data. Past returns do not tell you future ones.
Costs come out of returns too. A regular plan's higher expense ratio lowers the return you actually get; the commission calculator shows by how much over the same period.
Plan and simulate your goals with Dhriti
A calculator works with one SIP and one assumed return. Your real plan has several goals and the funds you already hold. Dhriti, the AI in the Genvest app, works from your linked portfolio: ask it whether you are saving enough for a goal, what corpus a goal needs, and how much to add or step up if your current SIPs fall short, then try different amounts and dates. Personalised advice on eligible plans comes from Genvest, a SEBI-registered investment adviser.
After you start
Once a SIP has run for a while, check what it actually earned with the XIRR calculator, which allows for the date of every instalment. Compare that with the fund's benchmark and category over the same dates.
Frequently asked questions
What is a SIP calculator?
A SIP calculator estimates what a monthly investment could grow to, from the amount, the number of years and a yearly return you assume. It shows the total you invest, the estimated gain and the estimated value, so you can compare amounts and periods. The return is your assumption; the calculator does not predict it.
How is the SIP return calculated?
Each instalment is invested at the start of the month and grows at the monthly rate equivalent to the yearly return you enter, until the end of the period. The estimated value is the sum of all instalments with their growth. The formula is FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i), where P is the monthly SIP, i the monthly rate and n the number of months.
Why do SIP calculators show different values?
Mostly because of how they turn a yearly return into a monthly one. This calculator treats 12% a year as 12% compounded over the year, which is how fund returns are reported. Some calculators divide 12% by 12 and compound 1% a month, which works out to about 12.7% a year. For ₹10,000 a month over 15 years, that gives about ₹50.46 lakh instead of ₹47.59 lakh.
How much SIP do I need for ₹1 crore?
At an assumed 12% a year, about ₹21,100 a month for 15 years reaches ₹1 crore. Starting at about ₹12,100 and raising the SIP by 10% every year gets there in the same time. At 6% inflation, ₹1 crore in 15 years is worth about ₹41.73 lakh today. Actual returns vary, so these are illustrations, not promises.
What is a step-up SIP?
A step-up (or top-up) SIP raises the monthly instalment by a set percentage, or amount, once a year, usually in line with income. Because later instalments are larger, a step-up reaches a goal with a smaller starting SIP. Most fund houses offer it as an option when you register the SIP.
Is the SIP return guaranteed?
No. Mutual fund returns depend on the market and vary from year to year; equity funds can fall for months or years. A SIP calculator applies one steady return to every year, which no fund delivers. Use it to compare scenarios, not as a forecast.
SIP calculator or XIRR calculator: which do I need?
Use a SIP calculator to plan: it projects a future value from a return you assume. Use an XIRR calculator to review: it works out the return your SIP actually earned from its dates and current value.
Are the amounts I enter stored?
No. The calculation runs in your browser, and the amounts you enter are not saved or sent to Genvest.
Related guides
- XIRR calculator: the return your SIP actually earned
- Commission calculator: direct vs regular plan over time
- How to build a mutual fund portfolio in India
- Hybrid mutual funds: the seven types compared
- Asset allocation for Indian DIY investors
More Genvest calculators
This calculator is an educational illustration based on the figures you enter, including an assumed steady return. It is not a forecast, a promise of returns or personalised investment advice. Investments in securities market are subject to market risks. Read all related documents carefully before investing. Registration granted by SEBI, enlistment with IAASB and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.