SIP Calculator
Project the value of a monthly SIP over your chosen investment horizon.
SIP investments
Systematic Investment Plans
A way of investing a fixed amount at regular intervals. Understanding precisely what that does — and what it does not do — is the whole point of this page.
Definition
What is an SIP?
A Systematic Investment Plan is a method of investing a fixed amount in a mutual fund scheme at regular intervals, usually monthly. It is worth being precise: an SIP is a method, not a product, and not a scheme in its own right.
You authorise a fixed amount to be debited on a chosen date each month. That amount buys units at whatever the net asset value happens to be on that day. Over time you accumulate units bought at many different prices.
Because the rupee amount is fixed rather than the number of units, a fall in price means the same money buys more units, and a rise means it buys fewer.
Rupee cost averaging, in one line
Investing a fixed rupee amount regularly means your average purchase price is lower than the average of the prices you bought at — because more units were bought when prices were low.
It is a consequence of the arithmetic. It works in both directions, and it does not prevent a loss.
What an SIP does not do
SIP does not guarantee profits or protect against losses. If the scheme falls in value, an SIP will keep buying — that is the point — but your portfolio value will still fall.
Nor does an SIP make an unsuitable scheme suitable. What you invest in, and for how long, still matter.
Mechanics
How an SIP Actually Works
- 01
Choose an amount and a date
Pick an instalment your cash flow can sustain in a difficult month, not just a comfortable one.
- 02
Set up the mandate
A standing instruction authorises the debit. Your bank and the scheme handle the rest each month.
- 03
Units are allotted
The amount buys units at that day's net asset value. Your unit balance grows every month.
- 04
Review, do not react
Assess the plan against the goal periodically. Not against last quarter's market movement.
Why people use it
The Benefits of Disciplined Investing
These are behavioural and structural advantages. None of them is a return advantage, and none of them is a guarantee.
It removes the timing decision
A fixed date each month means you never have to judge whether this is a good moment to invest — a judgement most people get wrong more often than they expect.
It makes investing a routine
A standing instruction converts investing from an occasional act of willpower into something that happens whether or not you think about it.
It spreads your entry price
Units are bought at many different levels rather than at one. This is rupee cost averaging, and it is arithmetic rather than strategy.
It can start small and grow
Many schemes accept SIPs from modest amounts, and the instalment can be increased later as income rises.
Step-Up SIP
Increasing your instalment each year
A Step-Up SIP, sometimes called a Top-Up SIP, increases the instalment by a chosen percentage once a year. Someone investing ₹10,000 a month with a 10% annual step-up would invest ₹11,000 a month in the second year and ₹12,100 in the third.
The idea is to let contributions rise roughly in line with income, so that the share of earnings being invested does not quietly shrink over a career.
It only works if your cash flow can genuinely absorb the increase. A step-up that has to be cancelled after two years achieves nothing.
Illustration
With a 10% annual step-up on a ₹10,000 starting instalment:
- Year 1₹10,000 / month
- Year 2₹11,000 / month
- Year 3₹12,100 / month
- Year 4₹13,310 / month
- Year 5₹14,641 / month
Instalment amounts only. This illustrates how the contribution changes, and says nothing about the value the investment may reach.
Try the numbers
SIP Calculators
Free, no login, and every assumption is yours to change.
Step-Up SIP Calculator
See how increasing your SIP each year changes the outcome of the same plan.
SIP Delay Calculator
An illustration of what postponing the start of an investment can mean.
Investment Growth Calculator
Combine a lump sum and a monthly investment in a single projection.
Questions
SIP Questions We Are Asked Most
A Systematic Investment Plan is a way of investing a fixed amount in a mutual fund scheme at regular intervals, usually monthly. Because the amount is fixed, you buy more units when prices are lower and fewer when they are higher — an effect known as rupee cost averaging. An SIP is a method of investing, not a product in itself, and not a return assurance.
A Step-Up SIP, sometimes called a Top-Up SIP, increases your instalment by a chosen percentage once a year. Someone investing ₹10,000 a month with a 10% annual step-up would invest ₹11,000 a month in the second year and ₹12,100 in the third. The idea is to let contributions rise roughly in line with income. It only works if your cash flow can genuinely absorb the increase.
SIPs are generally not locked in, and can usually be paused or stopped, subject to the scheme's terms and any applicable exit load. ELSS schemes are an exception: each instalment carries its own statutory lock-in. Check the scheme documents for the specific terms that apply.
संपत्तीची उभारणी. भविष्याची सुरक्षा.
Start your investment journey
A conversation about what the money is for, when you need it, and what you can sustain each month — before any product is discussed.
गुंतवणूक बाजारातील जोखमींच्या अधीन आहे. परताव्याची हमी नाही. कोणतीही चर्चा शैक्षणिक स्वरूपाची असते आणि ती कोणतेही आर्थिक उत्पादन खरेदी किंवा विक्री करण्याची शिफारस नाही.