How SIP returns are estimated
Each monthly instalment grows at the expected return, compounded monthly, from the month it is invested. The calculator adds up the value of every instalment at the end of the period. A step-up raises your SIP amount by a fixed percentage once a year, as many salaried investors do after an increment.
Example
₹10,000 a month for 15 years at 12% a year grows to roughly ₹50 lakh, on ₹18 lakh invested. Adding a 10% yearly step-up raises the result sharply.
Frequently asked questions
Is a 12% return guaranteed?
No. Equity funds have delivered around that over long periods, but returns vary year to year and can be negative. Use a lower rate, like 8–10%, for a conservative estimate.
Is tax included?
No. Long-term capital gains on equity funds above the yearly exemption are taxed when you redeem. The figure shown is before tax.
What is a step-up SIP?
A SIP whose monthly amount increases by a set percentage every year. Most fund houses let you set this when you start the SIP.
Sources
- AMFI ↗ – mutual fund data
- SEBI investor website ↗ – how SIPs and market risk work