SIP Calculator India 2026

How SIP grows over time: compounding and accurate SIP growth projection

A Systematic Investment Plan (SIP) grows because of compounding. You invest a fixed amount every month; each installment is deployed in the market and earns returns. Earlier installments stay invested longer, so they compound more. Over time, the future value is much higher than the simple sum of what you put in — that difference is your wealth gain. This calculator uses the standard future-value-of-annuity formula with a compound monthly rate — giving you an accurate, inflation-adjusted projection for long-term planning. The year-wise chart helps you see exactly how wealth builds over time.

Why inflation adjustment matters for long-term SIP planning

Inflation reduces the purchasing power of money. A large corpus in 20 years will buy less than the same amount today. This calculator shows both the nominal future value and the inflation-adjusted value — that is, what your corpus would be worth in today’s rupees. For long-term planning, the inflation-adjusted number is what you should use to judge whether you are on track. We use the formula: inflation-adjusted value = Future Value ÷ (1 + inflation)^years, so you can plug in your expected inflation (e.g. 6%) and see the real value of your wealth.

Use cases: beginners and salaried professionals

For beginners: Start with ₹2,000–₹5,000/month, choose 10–15 years and 10–12% expected return. The chart shows how regular investing compounds into a meaningful corpus. Increase your SIP amount as your income grows — even small annual step-ups significantly impact the final corpus.

For salaried professionals: Use ₹25,000–₹50,000+/month with a 15–20 year horizon at 12% CAGR to project retirement wealth. Align your SIP with ELSS (for 80C tax saving under Old Regime) or index funds, and use the inflation-adjusted value to judge if your corpus will sustain your lifestyle post-retirement.

Frequently asked questions

How does SIP grow over time?

SIP grows through compound returns. Each monthly installment is invested and compounds over time. The formula is FV = P × [((1 + r_m)^n - 1) / r_m] × (1 + r_m), where r_m = (1 + annual_rate)^(1/12) − 1.

How much should I invest monthly in SIP?

Invest at least 10–20% of your monthly in-hand salary. At ₹50,000 in-hand, that is ₹5,000–₹10,000/month. At 12% CAGR over 20 years, ₹10,000/month grows to approximately ₹92 lakh.

What is the formula for SIP future value?

FV = P × [((1 + r_m)^n - 1) / r_m] × (1 + r_m), where r_m = (1 + r)^(1/12) − 1, r is annual return as decimal, n is total months. Using r/12 overstates corpus by ~8% over 20 years.

Why is inflation adjustment important in SIP planning?

Inflation erodes purchasing power. Inflation-adjusted value = Future Value ÷ (1 + inflation)^years. At 6% inflation over 20 years, ₹92L nominal becomes approximately ₹28.7L in today's rupees.