What happens if I miss a SIP installment?

Missing one SIP does not affect your credit score. The fund simply won't allot units for that month. Most fund houses allow 2–3 consecutive misses before deactivating the SIP.

SIP vs lumpsum — which is better?

SIP wins when markets are volatile due to rupee cost averaging. Lumpsum can outperform at market lows. For most salaried investors who can't time markets, SIP offers better discipline.

How is SIP return calculated?

Using the formula M = P × ([1+r]^n − 1) / r × (1+r), where P is monthly SIP, r is monthly return rate (annual rate ÷ 12 ÷ 100), and n is total months.

What is a good SIP amount to start with?

Any amount is a good start. A practical guideline is 20–30% of monthly income. Use this calculator to work backwards from your target corpus to find the right monthly SIP.

Free Tool

SIP Calculator India

Q: Is 12% return realistic for SIP in India?

Historically, Nifty 50 has delivered around 12–14% CAGR over 15+ year periods. 12% is widely used as a conservative long-term estimate for large-cap equity mutual funds in India.

Calculate mutual fund returns, inflation-adjusted maturity value, and absolute wealth creation. Built for Indian investors.

Loading calculator…

How the SIP formula works

M = P × {[(1 + r)ⁿ − 1] ÷ r} × (1 + r)

MMaturity value (Total corpus)

PYour monthly SIP contribution

rMonthly rate of return (Annual % / 12)

nTotal number of months

Inflation-Adjusted Real Value

Real Value = M ÷ (1 + inflation)^years

This tells you what your maturity amount is worth in today's purchasing power. ₹1 crore received in 20 years at 6% inflation buys only what ₹31 lakh buys today. Most calculators skip this. We don't.

Worked example

Inputs: ₹5,000/month · 12% annual return · 20 years · 6% inflation

r= 12 ÷ 12 ÷ 100= 0.01 (monthly rate)

n= 20 × 12= 240 months

M= 5000 × ([1.01]²⁴⁰ − 1) ÷ 0.01 × 1.01= ₹49,95,740

Real= 49,95,740 ÷ (1.06)²⁰= ₹15,55,248

You build ₹49.9 lakh in nominal terms, but inflation erodes its value. In today's purchasing power it's only ₹15.6 lakh — showing why higher SIP amounts and longer durations compound so powerfully.

SIP vs Lump Sum: Which Investment Strategy Generates More Wealth?

You have ₹5 lakh. Two choices: invest it all today, or invest ₹10,000 monthly for 50 months. Both amounts are identical. But the results? Very different — and which wins depends entirely on what the market does next.

Bull Market (consistent 12% returns)

Lump Sum Wins

Lump Sum

₹9.2 crore

SIP

₹7.8 crore

Winner

Lump Sum (+₹1.4 crore)

Money invested earlier compounds longer. If you know markets will rise — which you don't — lump sum wins.

Crash then Recovery (market drops 30% in year 1)

SIP Wins

Lump Sum

₹8.2 crore

SIP

₹8.8 crore

Winner

SIP (+₹0.6 crore)

SIP buys units at lower prices during the crash, creating a better cost basis that pays off on recovery.

Volatile Market (random ups and downs)

SIP Wins 65% of time

Lump Sum

Timing-dependent

SIP

Averages entry price

Winner

SIP (in most scenarios)

Real markets are choppy, not linear. SIP removes timing risk — the thing you can't control.

Decision Framework

Choose Lump Sum if

· You have strong conviction markets are down 30%+
· You can stomach a 40% further drop without panic-selling
· Deploying the full amount doesn't affect your emergency fund

Choose SIP if

· You're not sure about market direction (realistic for most)
· You want mathematical certainty — no timing luck
· You invest from monthly income, not a lump sum event

For 95% of people: SIP is the right choice — not because it always wins, but because it removes the risk of catastrophically wrong timing.

How Much SIP Do You Really Need? Calculate by Your Financial Goal

Most people ask: "How much SIP can I afford?" That's backwards. The right question is: "How much SIP do I NEED?" — then figure out if you can afford it.

Work backwards from your goal. If the required SIP isn't affordable, adjust the goal, extend the timeline, or accept a different return expectation — not just pick a comfortable-feeling number.

Retire at 40 with ₹1 Crore

~₹4,500/month

Timeline: 15 years

Expected Return: 12%

At 10% of a ₹55L salary — very achievable. At 30%? Extend to 20 years (SIP drops to ₹2,200/month).

House Down Payment ₹50 Lakh

~₹3,100/month

Timeline: 10 years

Expected Return: 10% (debt+equity mix)

Very achievable for ₹40L+ salaried earners. Use a debt-heavy allocation — you can't afford a 30% drawdown 2 years before purchase.

Child Education ₹25 Lakh (inflation-adjusted)

~₹1,100/month

Timeline: 15 years

Expected Return: 12%

Education is affordable with disciplined SIP. Most parents don't start because they don't calculate. Start before the child is born for maximum compounding.

Financial Independence ₹2 Crore (FIRE)

~₹3,200/month

Timeline: 20 years

Expected Return: 12%

This is the 4% rule corpus for ₹8,000/month lifestyle. For a higher lifestyle, your FIRE number increases proportionally — use the FIRE calculator.

Notice the pattern: shorter timeline = higher SIP, longer timeline = lower SIP. There is no one-size-fits-all number. The amount is always a function of your specific goal + timeline + expected return.

The SIP Timeline: How Long Until You See Real Returns?

Everyone thinks SIP is "set and forget." It is — but there's a timeline. Miss it, and you'll be disappointed. Hit it, and you'll be amazed. Most people quit in year 2. That is exactly the wrong time to quit.

Year 1–3The Grind8% growth

Invested

₹3.6 lakh

Returns

₹0.3 lakh

Total Corpus

₹3.9 lakh

Your money hasn't been invested long enough to compound meaningfully. Returns look small because they are — yet.

Most people quit here. Wrong decision.

Year 3–7The Acceleration18% growth

Invested

₹6 lakh

Returns

₹1.1 lakh

Total Corpus

₹7.1 lakh

Earlier investments now compound hard. Each new SIP contributes less; old investments contribute more.

People who stay past year 3 almost always stay forever.

Year 7–15The Explosion54% growth

Invested

₹18 lakh

Returns

₹9.8 lakh

Total Corpus

₹27.8 lakh

Compound interest is exponential. Your returns are generating returns. This is where SIP feels magical.

Don't judge SIP by years 1–3. Judge by years 7–15.

Year 15–25Wealth Generation76%+ growth

Invested

₹30 lakh

Returns

₹23 lakh

Total Corpus

₹53 lakh+

At this stage, your corpus generates more returns per month than your SIP contributes. Automatic wealth building.

This is why FIRE is possible. You work less than your money works.

SIP Returns After Inflation: The Real Growth You Need to Know

Your SIP calculator shows ₹27.8 lakh. But after India's 6% inflation, is it really ₹27.8 lakh? The answer might shock you — and understanding it changes how you plan.

Nominal Result (what calculator shows)

Monthly SIP₹10,000

Duration15 years

Expected return12%

Total invested₹18 lakh

Maturity (nominal)₹27.8 lakh

Nominal gain54%

Real Result (after 6% inflation)

Monthly SIP₹10,000

Duration15 years

Inflation rate6%/year

Total invested₹18 lakh (real)

Real value₹11.6 lakh

Real gain−₹6.4 lakh (loss!)

Why This Happens

India averages 5–7% inflation annually. Your SIP earns 12% nominal. Real return = approximately 12% − 6% = 6% actual growth. Over 15 years, this gap is enormous.

Formula: Real Value = Maturity ÷ (1 + inflation)^years → ₹27.8L ÷ (1.06)¹⁵ = ₹11.6 lakh

→

Invest for 20+ years instead of 15

Real value becomes ₹18.6 lakh (finally positive net real gain)

→

Step-up SIP by 7% annually (matching inflation)

Your real growth becomes 12% instead of 6% — completely changes the outcome

→

Use FIRE calculator with 3% rule for retirement

Ensures your retirement corpus is inflation-adjusted from the start

Frequently asked questions

Everything you need to know about SIP investing, answered plainly.

Want a full personalised investment plan?

The SIP calculator gives you a projection. Our investment planner gives you an actionable blueprint — portfolio allocation, Monte Carlo goal probability, and a monthly plan built around your life.

Build my investment plan — free