SIP of ₹5,000 a Month

Five thousand rupees a month is a SIP many salaried people actually start. This page opens with that amount, 15 years, and a flat 12% a year so the arithmetic is visible. Twelve percent is a round number used in examples. It is not a forecast for a fund, and a bad decade will not look like the smooth table.

Read the invested amount first. That is money you part with. The gain beside it exists only if the return you typed is what happens. Expense ratios, exit loads, and tax are not removed.

A step-up box is on the form if you expect to raise the SIP as your salary rises. Leaving it at zero keeps this illustration honest about a flat ₹5,000.

If you want a government small-savings comparison with a declared rate, use the PPF calculator and remember the 15-year lock-in and the ₹1.5 lakh yearly cap.

About this calculator

A systematic investment plan is a habit of investing a fixed amount every month, usually in a mutual fund. This calculator turns that habit into a future-value illustration. It compounds monthly and assumes the instalment goes in at the start of the month.

The useful split is the amount you put in versus the illustrated gain. The gain is not interest from a bank. It is the result of the return you typed, repeated without a bad year.

A step-up SIP raises the monthly amount once a year. That increases both the money you contribute and the illustrated value. It is only realistic if your income can support the higher SIP later.

Use the PPF calculator for a government small-savings comparison, and the FD calculator for a bank deposit. Neither of those is a substitute for reading a scheme document.

SIP formula

Future value = P × (((1 + r)^n − 1) / r) × (1 + r)

P is the monthly investment.
r is the monthly rate (yearly rate ÷ 12 ÷ 100).
n is the number of months.

The extra × (1 + r) treats each instalment as invested at the start of the month. A step-up raises P once a year and is worked month by month.

Example: ₹5,000 a month for 15 years

₹5,000 invested at the start of every month for 15 years, with a flat 12% yearly illustration and no step-up.

Amount invested is ₹9,00,000.00. Illustrated value is ₹25,22,880.00. Illustrated gain is ₹16,22,880.00.

The gain exists only if that return actually happens. A lower return, a missed year, or an exit during a fall will not match this table.

₹5,000 SIP, 12% illustration, 15 years

Flat return, no step-up.

₹25,22,880.00

How to use

1. Enter the amount you can invest every month.
2. Enter an expected yearly return you are willing to treat as an illustration.
3. Enter the number of years.
4. Leave step-up at 0 for a flat SIP, or enter a yearly increase.
5. Press Calculate and read the invested amount separately from the illustrated gain.

Important notes

• Mutual fund returns move. A flat 12% is a common classroom figure, not a forecast.
• This tool ignores exit load, expense ratio, and tax.
• Equity SIPs can fall in a bad year even if the long-run illustration looks smooth.
• Step-up assumes you increase the SIP on each anniversary and stay invested.

FAQ