SIP Calculator with Inflation, Step-Up & Tax Exemption

This SIP calculator helps you estimate returns with inflation adjustment, step-up SIP increases, and tax exemption impact. Calculate nominal SIP returns, inflation-adjusted SIP returns (real value), and post-tax corpus after LTCG tax using one tool.

Model annual SIP increases to reflect salary growth and see how step-up contributions change your long-term corpus.

Review LTCG tax impact alongside the annual exemption to estimate your post-tax SIP corpus.

Inflation reduces purchasing power, so real returns help you plan goals in today's money.

A Systematic Investment Plan (SIP) is a disciplined investment approach where you invest a fixed amount regularly in mutual funds. Instead of timing the market with lump sum investments, SIP enables rupee cost averaging by automatically buying more units when prices are low and fewer units when prices are high.

Why Use a SIP Calculator?

Our advanced SIP calculator helps you make informed investment decisions by showing you realistic projections. Unlike basic calculators that only show nominal returns, we provide:

How to Use This SIP Calculator

1. Enter Monthly Investment: Start with ₹500-₹1,000 per month. Aim to invest 20-30% of your monthly income.
2. Set Assumed Returns: Choose an annual return rate for projection (for example, 8–12% for long-term planning). Actual returns are not guaranteed.
3. Choose Investment Tenure: Minimum 5 years for equity, ideally 10+ years to ride out market volatility.
4. Enable Step-Up Mode: Increase SIP by 5-10% annually or link it to your salary growth for realistic projections.
5. Review Today's Money: Compare nominal value with value in today's money (inflation-adjusted) to understand purchasing power.
6. Review Tax Impact: See LTCG tax deduction and your actual post-tax corpus after accounting for ₹1.25L exemption.
7. Plan Withdrawals (Optional): Enable SWP to model retirement income and see how long your corpus will last.

Key Benefits of SIP Investing

Rupee Cost Averaging: By investing regularly, you buy more units when markets are down and fewer when they're up, averaging out your purchase cost over time.

Disciplined Investing: Automate your wealth creation journey. SIPs remove the need to time the market and ensure consistent investing regardless of market conditions.

Power of Compounding: Start early to benefit from exponential growth. A ₹10,000 monthly SIP at 12% returns grows to ₹37.4 lakhs in 15 years, with ₹19.4 lakhs coming from compounded returns alone.

Flexibility: Start small with as little as ₹500/month. Increase, pause, or stop your SIP anytime based on your financial situation.

Choosing an Assumed Return Rate

Equity-heavy portfolios: Many investors use 8–12% as a planning assumption for long-term projections. Actual returns can be higher or lower and may vary significantly year to year.

Debt-focused portfolios: Often modeled around 5–8% for planning. Outcomes depend on interest rates, credit risk, and fund strategy.

Hybrid portfolios: Frequently modeled in the middle (e.g., 6–10%) depending on the equity/debt mix and your risk profile.

Can I stop or pause my SIP anytime?

Yes, SIPs are flexible. You can pause, stop, or modify your SIP amount anytime without penalty. However, stopping during market downturns means missing out on rupee cost averaging benefits. Consider pausing only during financial emergencies.

What happens if I miss a SIP installment?

Missing 1-2 installments due to insufficient bank balance won't cancel your SIP. However, consecutive missed installments (typically 3) may lead to automatic SIP cancellation. You'll need to restart the SIP manually. To avoid this, maintain sufficient balance or set up account alerts.

Is SIP better than lump sum investment?

SIP is better for most investors as it eliminates market timing risk and provides disciplined investing. Lump sum works when markets are at historical lows (hard to predict). For regular income earners, SIP is the practical choice. Our calculator helps compare both scenarios.

Which mutual fund type should I choose for SIP?

For 10+ year goals, choose equity funds (12-15% expected returns). For 3-5 years, balanced/hybrid funds (9-11% returns). For less than 3 years, debt funds (6-8% returns). Diversify across large-cap, mid-cap, and flexi-cap funds to balance risk and returns.

When is the best time to start a SIP?

Today. The best time to start a SIP was 10 years ago; the second best time is now. SIP works through market cycles—starting during market highs or lows doesn't matter much over 10+ years. Focus on staying invested rather than timing the market.

How do I withdraw money from my SIP?

SIP is for accumulation; use SWP (Systematic Withdrawal Plan) for regular withdrawals. You can redeem mutual fund units anytime—equity units held over 1 year qualify for LTCG tax at 12.5%. Our calculator includes SWP planning to model sustainable retirement withdrawals.