Gorantla & Associates
Investment

SIP Calculator

Systematic Investment Plan returns — see how monthly contributions grow over time.

10k
0.5k100k
12% p.a.
6% p.a.25% p.a.
15 years
1 years40 years

SIP Results

Total Invested₹18,00,000
Estimated Returns₹32,45,760
Total Corpus₹50,45,760
Wealth GainCorpus / Amount Invested2.8×

Invested vs Returns

SIP Investing — A Practical Guide for Indian Investors

A Systematic Investment Plan (SIP) lets you invest a fixed amount in mutual funds at regular intervals — typically monthly. It is the most popular form of mutual fund investing in India, with over ₹25,000 crore of SIP flows per month as of 2025.

Why SIP Works — Rupee Cost Averaging

When markets fall, your fixed SIP amount buys more units. When they rise, you buy fewer. Over time, this lowers your average cost per unit compared to investing a lump sum at a market peak. This automatic discipline removes the dangerous temptation to time the market.

Power of Compounding — Real Numbers

  • ₹5,000/month for 20 years at 12% = ₹49.9 lakh (invested: ₹12L)
  • ₹10,000/month for 20 years at 12% = ₹99.9 lakh (near ₹1 crore)
  • ₹10,000/month for 30 years at 12% = ₹3.5 crore (invested: ₹36L)

Tax on SIP Returns

SIP redemptions are taxed as capital gains. For equity mutual funds: gains on units held >12 months are Long-Term Capital Gains (LTCG) taxed at 12.5% (above ₹1.25L per year, post-Budget 2024). Gains on units held <12 months are Short-Term Capital Gains (STCG) taxed at 20% flat. Each SIP instalment has its own holding period clock.

How to Choose a SIP Amount

Financial planners use the 50-30-20 rule: 50% of take-home on needs, 30% on wants, 20% on savings. Of that 20%, allocate at least half to equity SIPs for long-term wealth. Use the calculator above to reverse-engineer: enter your target corpus and years to find your required monthly SIP.

Want a personalised investment plan?

Our CA can structure your SIPs optimally across ELSS (tax-saving), flexi-cap, and debt funds based on your risk profile and tax bracket. Talk to us →

Disclaimer: Results are for estimation purposes only and do not constitute professional financial, tax, or legal advice. Consult a qualified CA or financial advisor before making decisions. Talk to the firm's office