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AI-Powered12.5% LTCGUpdated for Latest Income Tax (Budget 2024 / Sec 115BAC) & GST Rules · 100% Free

SIP Calculator

Calculate systematic investment plan growth with monthly compounding, annual step-up %, and Budget 2024 LTCG tax.

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SIP Return & Wealth Calculator

With Annual Step-Up, Inflation Purchasing Power, and Budget 2024 LTCG Tax (12.5%)

₹500₹50,000₹1,00,000₹2,00,000
%
8% (Debt / Balanced)12% (Nifty Index)15% (Mid/Small Cap)
Yrs
1 Yr10 Yrs20 Yrs35 Yrs
Projected Corpus After 10 Years

23,23,391

Estimated Total Wealth Multiplier: 1.94x

Total Invested Amount

12,00,000

52% of final corpus

Estimated Wealth Gain

11,23,391

48% from pure compounding

Post-Tax In-Hand (Budget 2024)

21,93,600

After ₹1,29,791 LTCG Tax (12.5%)

Investment (52%)Capital Gain (48%)

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Equity SIP & Step-Up Compounding Strategist

Mutual Fund Compounding & Wealth Acceleration Advisor · Digital Bharat Law

Suggested Questions for this Tool:

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Statutory Guide & Methodology

Understanding SIP Calculator

A Systematic Investment Plan (SIP) allows you to invest a fixed sum of money at regular monthly intervals into mutual fund schemes. It instills financial discipline and leverages Rupee Cost Averaging—purchasing more mutual fund units when markets dip and fewer units when markets rise.

The compounding effect transforms small monthly investments into substantial wealth over 10, 15, or 20-year horizons. Adding an annual step-up (increasing your SIP by 10% each year as your income grows) can more than double your final maturity corpus.

Core Calculation FormulaOfficial Rule
Maturity = P × [((1 + i)^n - 1) / i] × (1 + i)
P (Monthly Investment): Fixed amount invested each month (e.g. ₹5,000, ₹10,000, ₹25,000)
i (Monthly Interest Rate): Annual expected return divided by 12 (e.g. 12% p.a. = 1% or 0.01 per month)
n (Total Months): Investment tenure in years multiplied by 12 months
Step-Up Rate (%): Annual percentage increase in monthly investment amount

* Budget 2024 increased LTCG tax on equity mutual funds to 12.5% on gains exceeding ₹1.25 Lakhs/year.

Key Regulatory Rules & Thresholds (FY 2025–27)

Essential departmental provisions, tax brackets, and statutory compliance mandates.

Rupee Cost Averaging

RCA Principle

Eliminates the risk of bad market timing by spreading unit purchases across market highs and market lows.

Power of Step-Up Compounding

10% Step-Up

A ₹10,000 monthly SIP for 15 years at 12% yields ~₹50.4 Lakhs. Adding a 10% annual step-up increases the corpus to ~₹87.5 Lakhs!

Budget 2024 LTCG Tax on Equity

12.5% LTCG

Units held > 12 months attract 12.5% Long-Term Capital Gains tax on net profits exceeding ₹1,25,000 per financial year.

Direct vs Regular Plans

Direct Mutual Fund

Direct plans have zero distributor commissions and lower expense ratios (0.5%–1.0% lower), compounding to 15% higher returns over 20 years.

Frequently Asked Questions

Authoritative answers to common questions and search queries verified by Chartered Accountants.

Chartered Accountant Advisory

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