SIP Calculator with Post-Tax Returns
See how much your monthly SIP can grow to, and what you keep after capital gains tax on redemption.
Rules applicable for FY 2026-27, last updated 28 Oct 2026
Your SIP value
Year-by-year values
| Year | Invested | Value |
|---|---|---|
| 1 | ₹1,20,000 | ₹1,28,093 |
| 2 | ₹2,40,000 | ₹2,72,432 |
| 3 | ₹3,60,000 | ₹4,35,076 |
| 4 | ₹4,80,000 | ₹6,18,348 |
| 5 | ₹6,00,000 | ₹8,24,864 |
| 6 | ₹7,20,000 | ₹10,57,570 |
| 7 | ₹8,40,000 | ₹13,19,790 |
| 8 | ₹9,60,000 | ₹16,15,266 |
| 9 | ₹10,80,000 | ₹19,48,215 |
| 10 | ₹12,00,000 | ₹23,23,391 |
Your result explained
"Value after tax" is what you would keep if you redeemed the whole amount at the end of the period, after capital gains tax. The post-tax return is the yearly return that would give that amount with the same instalments, so you can compare it with other investments.
Worked example
Investing ₹10,000 a month for 10 years at an expected 12% a year means you invest ₹12,00,000 and the SIP grows to ₹23,23,391.
- The last 12 instalments are held for 12 months or less, so their gain of ₹8,093 is short-term (20%).
- The earlier instalments give a long-term gain of ₹11,15,297; the first ₹1,25,000 is exempt and the rest is taxed at 12.5%.
- Total tax with 4% cess is ₹1,30,422, leaving ₹21,92,969, a post-tax return of about 11.02% a year.
How it is calculated
Maturity value = Σ instalment × (1 + r/12)months invested, where r is the expected annual return and each instalment is invested at the start of the month. With a step-up, the instalment rises by the step-up percentage every 12 months.
Tax on redemption uses the rules for equity mutual funds for FY 2026-27, applied to each instalment separately:
- Units held for more than 12 months are long-term: gains above ₹1,25,000 are taxed at 12.5% (section 198 of the Income-tax Act, 2025).
- Units held for 12 months or less are short-term: gains are taxed at 20% (section 196).
- Health and education cess of 4% is added.
We assume the whole corpus is redeemed in one financial year, your other income already uses the basic exemption, your total income stays under ₹50 lakh (no surcharge), and today's tax rates still apply when you redeem. Returns are not guaranteed. For gains on actual sales, use our capital gains calculator.
Frequently asked questions
How is SIP maturity value calculated?
Each monthly instalment grows for the months it stays invested. With an expected annual return r, the monthly rate is r ÷ 12, and an instalment invested at the start of a month grows by (1 + r/12) for every month until the end. The maturity value is the sum of all instalments with their growth. Actual mutual fund returns vary and are not guaranteed.
How are SIP returns taxed?
For equity mutual funds, each SIP instalment is treated as a separate purchase. Units held for more than 12 months give long-term gains, taxed at 12.5% above ₹1.25 lakh a year; units held for 12 months or less give short-term gains, taxed at 20%. Cess of 4% applies on top. Tax is due only when you redeem.
Why is the post-tax return lower than the expected return?
Because tax on the gains reduces what you take home. The post-tax return is the annual return that would give you the post-tax value with the same instalments. The longer you stay invested, the smaller the gap, because the ₹1.25 lakh exemption and lower long-term rate apply to most of your gains.
What is a step-up SIP?
A step-up (or top-up) SIP increases your monthly instalment by a fixed percentage every year, for example 10% as your salary grows. It can build a much larger corpus than a flat SIP over the same period.
Can I reduce tax by redeeming over several years?
Often, yes. The ₹1.25 lakh long-term gains exemption applies every financial year, so redeeming in parts across years can use it more than once. Redeeming only units held for more than 12 months also avoids the 20% short-term rate.
Is SIP in ELSS eligible for tax deduction?
ELSS instalments qualify for the ₹1.5 lakh investment deduction only under the old tax regime, and each instalment is locked in for three years. The new regime does not allow this deduction. Gains on ELSS are taxed like other equity funds.
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Disclaimer: This calculator gives an estimate for general information only. It is not professional tax, legal or financial advice, and your actual liability may differ. Please consult a qualified professional before acting on these figures.