SIP Calculator India 2026

SIP (Systematic Investment Plan) is a method to invest a fixed amount regularly in mutual funds. It uses rupee cost averaging to reduce market timing risk and benefits from compounding over time.

SIP return uses the compound interest formula: FV = P × [(1 + r)^n – 1] / r × (1 + r), where P = monthly investment, r = monthly rate, n = months. E.g., ₹5,000/mo at 12% for 10 years = ₹11.6 lakhs invested grows to ~₹23.2 lakhs.

Equity mutual funds historically return 12–15% p.a. over long term in India. Debt funds return 6–8%. ELSS funds: 12–14%. Use 12% for large-cap equity, 14–15% for mid/small-cap, and 7% for debt funds as conservative estimates.

XIRR (Extended Internal Rate of Return) measures the actual annualized return on your SIP investment considering the timing and amount of each installment. It is more accurate than simple CAGR for SIP performance evaluation.

SIP is better for salaried individuals as it spreads investment over time (rupee cost averaging). Lump sum is better when markets are at a low. For most investors without market timing skills, SIP is the preferred approach.

Most mutual funds allow SIP starting at ₹100–500 per month. Some funds allow ₹100/day SIPs. ELSS tax-saving SIPs start at ₹500/month. There is no maximum limit for SIP investments.