AeroniqxSIP & Investment Calculator
Calculate returns on your monthly SIP or lump sum mutual fund investment. See year-by-year growth with the power of compounding.
Equity funds avg 12–15% · Debt funds 6–9% · FD/RD 6–7.5%
| Year | Amount Invested (₹) | Total Value (₹) | Gain (₹) | Return % |
|---|---|---|---|---|
| Year 1 | 1,20,000 | 1,28,093 | 8,093 | 6.7% |
| Year 2 | 2,40,000 | 2,72,432 | 32,432 | 13.5% |
| Year 3 | 3,60,000 | 4,35,076 | 75,076 | 20.9% |
| Year 4 | 4,80,000 | 6,18,348 | 1,38,348 | 28.8% |
| Year 5 | 6,00,000 | 8,24,864 | 2,24,864 | 37.5% |
| Year 6 | 7,20,000 | 10,57,570 | 3,37,570 | 46.9% |
| Year 7 | 8,40,000 | 13,19,790 | 4,79,790 | 57.1% |
| Year 8 | 9,60,000 | 16,15,266 | 6,55,266 | 68.3% |
| Year 9 | 10,80,000 | 19,48,215 | 8,68,215 | 80.4% |
| Year 10 | 12,00,000 | 23,23,391 | 11,23,391 | 93.6% |
How it works & FAQs
What the SIP formula actually calculates
SIP returns use the future value of an annuity formula: FV = P × [(1 + r)ⁿ − 1] / r × (1 + r), where P is the monthly investment, r is the monthly return rate (annual rate ÷ 12 ÷ 100), and n is the number of months. The final ×(1+r) accounts for the fact that SIP investments are made at the start of each period (annuity due), not the end.
This calculator assumes a constant annual return rate, which is a simplification — mutual fund returns are not constant year to year. Real returns fluctuate significantly. The year-by-year table above assumes smooth compounding, but actual fund NAVs will have ups and downs. The long-term CAGR is what the calculator approximates, and that's what matters for planning purposes.
Realistic return expectations by fund category
Large-cap equity funds: 10–13% CAGR over 10+ years. These invest in the top 100 companies by market cap — relatively stable, well-researched businesses. Nifty 50 has delivered ~12% CAGR over the last 20 years. Use 11–12% as a realistic planning rate for large-cap SIPs.
Mid-cap funds: 13–16% CAGR over long periods, but with significantly higher volatility. In a bad year, mid-cap funds can fall 30–40% from peak. In a recovery, they can rise 50–70%. The 5-year rolling returns are much more variable than large-cap. Use 12–13% for planning — and be prepared to stay invested through downturns without redeeming.
Small-cap funds: 15–20% CAGR potential over 10+ years, but extreme volatility. Not suitable for money you might need in under 7 years. Many small-cap funds fell 50–60% in 2020 and recovered 100%+ by 2021–22. The returns are real but require strong conviction and a long horizon.
Debt mutual funds: 6–8% post-tax returns. Less than an FD in nominal terms but more flexible — no penalty for withdrawal before maturity. Suitable for 1–3 year goals. Post the 2023 tax change, debt fund gains are taxed as per your income slab (no more indexation benefit), making them less attractive for higher-bracket taxpayers compared to before.
Index funds (Nifty 50/Sensex): Mirror the index — expect 11–12% long-term. Expense ratios are 0.1–0.2%, far lower than actively managed funds (0.5–1.5%). SEBI data consistently shows that over 10 years, most active large-cap funds underperform their benchmark index. For this reason, many financial planners now recommend index funds as the core of a SIP portfolio.
SIP vs lump sum — when each makes sense
SIP wins when markets are volatile or at peak valuations — you buy more units when prices fall (rupee cost averaging) and fewer when prices are high. If you invest ₹1 lakh as a lump sum at a market peak and the market falls 30%, you're sitting on a ₹70,000 portfolio and may panic-sell. The same ₹1 lakh spread over 12 months would have bought more units during the dip, lowering your average cost.
Lump sum wins when you have a large amount ready to invest and markets are clearly undervalued — during sharp corrections or bear markets. Historically, lump sum investments made during market crashes (March 2020 for example) outperform equivalent SIP amounts because you bought everything at low prices. If you receive a bonus, inheritance, or sale proceeds, investing lump sum in a diversified fund during or after a market correction tends to work well.
The honest answer for most people: SIP by default, lump sum opportunistically during corrections. Don't try to perfectly time a lump sum — if you're not sure, split into 3–4 monthly lump sums over a quarter instead of one big bet.
Why starting early matters more than investing more
The year-by-year table above makes this visible. Compare: ₹5,000/month for 30 years at 12% = ₹1.76 crore. ₹10,000/month for 20 years at 12% = ₹99 lakh. You invested double the monthly amount but got 44% less — because you gave up 10 years of compounding. The first 10 years of a 30-year SIP generate a foundation that the remaining 20 years compound on top of. Starting at 25 vs 35 makes a 2–3× difference in final corpus even with identical monthly amounts.
Frequently asked questions
Can I rely on 12% returns for planning?
12% is reasonable for a diversified equity mutual fund (large-cap or index fund) over a 10–15 year horizon, based on historical Nifty 50 returns. But past returns don't guarantee future performance. For conservative planning — especially if your goal is critical (retirement, child's education) — use 10% as your base assumption and treat anything above that as a bonus. Using 15–18% for long-term planning leads to underfunding your goals.
What is the minimum SIP amount?
Most mutual funds allow SIPs starting at ₹500/month. Some funds (especially direct plans on AMC websites or platforms like Groww, Zerodha Coin, or Kuvera) allow ₹100/month. There's no upper limit. The ₹500 minimum makes SIP accessible even for early-career professionals — the habit of investing matters more than the amount in the early years.
Is SIP return the same as CAGR?
Not exactly. CAGR (Compound Annual Growth Rate) is typically used to describe the growth of a lump sum investment. For SIPs with multiple investment dates, the correct measure is XIRR (Extended Internal Rate of Return), which accounts for the timing of each cash flow. When mutual fund platforms show your "SIP returns," they're usually showing XIRR. The calculator here uses the standard SIP formula which approximates this well for regular monthly investments at a constant return rate.
Should I pause SIP during a market crash?
No — this is the worst thing you can do. A market crash means fund NAVs are low, so your fixed monthly SIP amount buys more units than usual. Pausing SIP during a crash means you miss buying at the lowest prices, which are exactly the units that generate the most returns when the market recovers. If anything, investors with spare cash should increase their SIP amount during sharp market corrections, not reduce it.