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Mutual Fund/SIP Calculator with Inflation Adjustment

SIP (Systematic Investment Plan) Calculator with Tax and Inflation Adjustment

Understanding SIP Investment Returns

Systematic Investment Plans (SIPs) are a disciplined approach to investing in mutual funds, allowing you to invest fixed amounts regularly. This calculator helps you understand the true potential of your SIP investments by considering both tax implications and inflation impact.

Power of Rupee Cost Averaging in SIP

SIPs utilize the principle of rupee cost averaging, where you buy more units when prices are low and fewer when prices are high. This strategy helps reduce the average cost of your investment over time and minimizes the impact of market volatility.

Impact of Regular Investment

Unlike lump sum investments, SIPs harness the power of regular, disciplined investing. For example, a monthly SIP of ₹10,000 at 12% annual returns can grow to significantly more than a one-time investment of the same amount, thanks to the power of compounding and regular contributions.

Key Features of SIP Calculator

  • Monthly Investment: Your regular monthly contribution amount
  • Expected Return Rate: Anticipated annual returns from your mutual fund investment
  • Investment Duration: Total period of investment in years
  • Tax Rate: Applicable tax rate on your gains
  • Inflation Rate: Expected inflation rate to calculate real returns

Understanding Your Results

The calculator provides comprehensive insights:

  1. Total Investment: Sum of all your monthly contributions
  2. Maturity Value: Total corpus accumulated before tax
  3. Total Gain: Additional wealth created through investment
  4. Post-Tax Value: Final amount after tax deductions
  5. Inflation-Adjusted Value: Real worth of your investment

Tax Implications on SIP Returns

Mutual fund returns are subject to capital gains tax. For equity funds, gains held over 12 months are subject to 10% LTCG tax (above ₹1 lakh), while debt fund gains over 36 months are taxed at 20% with indexation benefits.

Benefits of SIP Investment

  • Disciplined investing habit
  • Benefit from market volatility through rupee cost averaging
  • Start with small amounts
  • Flexibility to modify investment amount
  • Long-term wealth creation potential

Note: This calculator assumes a constant return rate and inflation rate. Actual market returns may vary. For personalized investment advice, please consult a financial advisor.