SIP Calculator: How to Calculate SIP Returns & How Much SIP for ₹1 Crore
Learn how to use the SIP calculator to plan your monthly investments, calculate future corpus, and find out how much SIP you need to reach ₹1 crore — with real numbers.
A SIP (Systematic Investment Plan) calculator answers the two most important questions in investing: "What will my money grow to?" and "How much do I need to invest to reach my goal?". This guide explains how to use Moneykar's SIP calculator, understand the numbers, and make smarter decisions about your monthly investments.
What does a SIP calculator do?
A SIP calculator takes three inputs — your monthly investment amount, expected annual return, and investment duration — and tells you the estimated future corpus your investments could grow into. It works backwards too: enter your target amount and duration to find the monthly SIP required.
The calculation uses the compound interest formula for regular payments, accounting for the fact that each SIP instalment is invested for a different period. Early instalments compound for longer; later ones for shorter. This is why starting early has such a dramatic effect on your final corpus.
How to use Moneykar's SIP Calculator
- Enter monthly SIP amount — the fixed amount you plan to invest each month (e.g., ₹5,000).
- Set expected annual return — use 10–12% for diversified equity funds, 6–7% for debt funds, 8% for balanced funds. These are illustrative, not guaranteed.
- Choose investment duration — the number of years you plan to stay invested.
- Read the output — total amount invested vs. estimated corpus. The difference is your estimated wealth gain from compounding.
The compounding math — why years matter more than amount
Here's a comparison that surprises most people:
| Scenario | Monthly SIP | Duration | Total Invested | Estimated Corpus (12%) |
|---|---|---|---|---|
| Early starter | ₹5,000 | 30 years | ₹18 lakh | ~₹1.76 crore |
| Late starter | ₹10,000 | 15 years | ₹18 lakh | ~₹50 lakh |
Both invested the same total amount. The early starter ends up with 3.5× more wealth simply by starting 15 years earlier. Time in the market beats timing the market — and beats larger amounts started later.
How much SIP for common goals
- ₹25 lakh in 10 years at 12% → ~₹10,900/month SIP
- ₹50 lakh in 15 years at 12% → ~₹10,000/month SIP
- ₹1 crore in 20 years at 12% → ~₹10,000/month SIP
- ₹1 crore in 10 years at 12% → ~₹43,500/month SIP
This shows why a 20-year horizon is so powerful — the same ₹10,000/month that takes 10 years to reach ₹23 lakh reaches ₹1 crore over 20 years. The calculator lets you explore all these combinations instantly.
Rupee Cost Averaging: why market dips are not a reason to stop
When markets fall, your SIP buys more mutual fund units for the same rupee amount. When markets rise, you buy fewer units. Over time, this Rupee Cost Averaging effect means your average cost per unit is lower than if you had invested a lump sum. This is a structural advantage of SIP — it removes the pressure to time the market.
SIP vs Lump Sum: which is better?
For salaried investors who receive income monthly, SIP is the natural choice — you invest as you earn. Lump sum investing makes sense when you have a large amount (bonus, inheritance, maturity proceeds) and markets are reasonably valued. A SIP calculator shows estimated returns for SIP; a lump sum calculator shows returns for one-time investment.
Frequently Asked Questions
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