SIP Calculator

It compounds each instalment separately for the time it stays invested, then adds them up. An instalment paid in year one compounds for the full tenure, while the final instalment compounds for a month. That is why maturity value grows far faster than total contributions.

Match the rate to the fund category, not to one fund's best run. Equity funds have historically delivered roughly 10-12% a year over long periods, hybrid funds 8-10% and debt funds 6-8%. Lower assumptions produce plans that survive bad years.

No. SIPs invest in market-linked mutual funds, so returns vary and capital can fall in value. The calculator projects one constant rate for clarity, but real returns arrive unevenly - some years strongly positive, some negative.

Substantially. Compounding is exponential, so the last few years contribute the largest absolute gains. Extending a 10-year SIP to 15 years typically more than doubles the maturity value, even though contributions rise by only half.

Each instalment is treated as a separate purchase for holding-period purposes. For equity funds, units held over 12 months qualify as long-term capital gains; shorter holdings are short-term. Debt fund taxation differs. Confirm current rates with a qualified tax adviser.

Falling markets are when a SIP buys the most units for the same amount, which is the mechanism that drives rupee-cost averaging. Stopping during a decline locks in the downside and removes the recovery. This is general information, not personal advice.