Updated for 2026 · Equity LTCG 12.5% · India
SIP Calculator: Your Real Returns After Tax & Inflation
The honest SIP calculator — see your corpus the way it actually lands: after inflation, after LTCG tax, with step-up and goal planning built in.
Your SIP could grow to
₹58.08 L
You invest ₹30 L · gains ₹28.08 L
In today's money
₹32.43 L
after 6% inflation over 10 yrs
After LTCG tax
₹54.73 L
−₹3,35,435 equity LTCG @ 12.5%
The cost of waiting
Start this same SIP 2 years later and you'd end with about ₹17.7 L less — the price of two years of lost compounding. Time in the market beats timing it.
How it grows — invested vs returns
Estimates only. Corpus uses the standard SIP formula (monthly rate = annual ÷ 12), so it matches the figure on Groww, AMFI and broker calculators. Real return assumes a steady rate — actual market returns vary year to year and are not guaranteed. The after-tax line applies equity LTCG (12.5% above ₹1.25 lakh of gains, holding over 12 months) as a one-off on redemption — your real tax depends on units, holding period and exemptions used. Mutual funds are subject to market risk; verify with a SEBI-registered adviser before investing.
What a SIP calculator really tells you — and what most leave out
A Systematic Investment Plan is just a fixed amount invested every month into a mutual fund. Its power is compounding: each instalment earns returns, and those returns earn returns, so the gap between what you put in and what you take out widens dramatically over time. Invest ₹25,000 a month for 10 years at 12% and you contribute ₹30 lakh — but you end with about ₹58 lakh. The other ₹28 lakh is compounding doing the heavy lifting.
That ₹58 lakh figure is where almost every SIP calculator stops. The problem: it is a pre-tax, pre-inflation fantasy number. Two forces quietly shrink it, and a tool that hides them sets you up to under-save.
The two numbers other calculators hide
Inflation. ₹58 lakh in 2036 will not buy what ₹58 lakh buys today. At 6% inflation, its real purchasing power is about ₹32 lakh in today's money. If you are investing for a goal a decade away — retirement, a home, a child's education — the inflation-adjusted figure is the one that matters, and this calculator puts it right next to the headline.
Tax.When you redeem an equity fund held over a year, long-term capital gains above ₹1.25 lakh are taxed at 12.5%. On a large corpus that is a real bite most tools pretend doesn't exist. We subtract it so you see the money that actually reaches your bank, not the gross.
Step-up SIP: the realistic way to invest
A flat SIP assumes you invest the same ₹25,000 in year one and year twenty — but your salary won't stay flat, so why should your SIP? A step-up SIP raises your contribution a set percentage each year, in step with your income. The effect is enormous: stepping up 10% a year can nearly double a 20-year corpus versus a flat SIP, because your biggest contributions compound for the longest. Toggle it on above and watch the corpus jump.
Work backwards from your goal
Sometimes you don't have a monthly amount in mind — you have a target: ₹1 crore by 45, ₹50 lakh for a house. Switch to "Reach a goal"mode, enter the corpus and the years, and the calculator reverse-engineers the exact monthly SIP you need. It also reveals the single most important lesson in investing: the cost of waiting. Starting two years later can cost you lakhs, because the compounding you skip at the start is the compounding that would have grown the longest.
Worked example: ₹25,000/month for 10 years at 12%
The headline: investing ₹25,000 a month for 120 months at 12% (monthly rate 1%) compounds to a corpus of ₹58,08,477 on ₹30,00,000 invested — a gain of ₹28,08,477. That matches what Groww and SBI Securities show for the same inputs, because the formula is the industry standard.
The honest version: apply 6% inflation and that ₹58 lakh is worth about ₹32.4 lakh in today's money. Apply equity LTCG — 12.5% on the ₹28.08 lakh gain above the ₹1.25 lakh exemption — and roughly ₹3.35 lakh goes to tax, leaving about ₹54.7 lakh in hand. The real takeaway sits between these numbers: your plan is strong, but size it against the after-tax, after-inflation figure, not the headline.
Now step it up: keep everything the same but raise the SIP 10% a year, and the corpus climbs to about ₹84 lakh — for contributions that grow gently with your salary instead of all at once. That is the difference between a calculator that shows you a number and one that shows you a plan. Run yours above, then check how much of your salary is free to invest with the CTC to in-hand calculator.
Frequently asked questions
How is SIP maturity amount calculated?
A SIP grows by compounding each monthly instalment for the months it stays invested. The standard formula is M = P × ({[1 + i]^n − 1} ÷ i} × (1 + i), where P is the monthly amount, n is the number of months, and i is the monthly rate (annual return ÷ 12). For ₹25,000 a month for 10 years at 12%, that gives a corpus of ₹58,08,477 on ₹30,00,000 invested — the same figure broker calculators show. This tool uses the identical formula, then additionally shows the value after inflation and after tax, which most calculators hide.
How much SIP do I need to reach ₹1 crore?
It depends on your time and return. At 12% annual return, reaching ₹1 crore needs about ₹43,000 a month over 10 years, ₹20,000 a month over 15 years, or just ₹10,000 a month over 20 years. The earlier you start, the dramatically smaller the monthly amount — because compounding does more of the work. Switch this calculator to 'Reach a goal' mode, enter ₹1 crore and your time frame, and it shows the exact monthly SIP required.
What is a step-up SIP and is it worth it?
A step-up (or top-up) SIP raises your monthly investment by a set percentage every year — say 10% — to match your rising salary. It is very worth it: a ₹10,000 SIP stepped up 10% a year for 20 years at 12% builds about ₹2 crore, versus roughly ₹1 crore for a flat ₹10,000 SIP — nearly double, for contributions that rise gently with your income. Toggle 'Step-up SIP' above to see the difference on your own numbers.
Are SIP returns taxed in India?
Yes. Gains on equity mutual funds held over 12 months are long-term capital gains, taxed at 12.5% on the portion above ₹1.25 lakh of gains in a financial year (post-July 2024 rules). Held under 12 months, gains are short-term and taxed at 20%. ELSS funds also give an 80C deduction up to ₹1.5 lakh. Most SIP calculators ignore tax and show an inflated pre-tax corpus — this one shows the after-tax figure so you plan with the real number. Always confirm current rates at incometax.gov.in.
Why does my SIP corpus look smaller after inflation?
Because ₹58 lakh in 10 years will not buy what ₹58 lakh buys today. At 6% inflation, that future ₹58 lakh has the purchasing power of roughly ₹32 lakh in today's money. This 'real value' is what actually matters for a goal like retirement or a child's education. A calculator that only shows the headline number flatters your plan; this one shows both the nominal corpus and its inflation-adjusted worth, so you size your SIP for the real target.
Is 12% a realistic return to assume for a SIP?
For diversified Indian equity mutual funds, 12% is a reasonable long-term assumption — the Nifty has delivered roughly 11–13% annualised over multi-decade periods, though with big swings year to year. Assuming 15%+ is optimistic and can badly oversell your plan; debt funds return far less (6–8%). It is safer to plan with 12% and treat anything more as a bonus. This calculator warns you when you set a return above 15% for exactly this reason.
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