Sip Calculator
"12% returns" — this number is everywhere in personal finance. But what does it actually mean for your SIP? How much will ₹5,000/month grow at 10% vs 12% vs 15%? This guide explains CAGR in plain language and shows you the real numbers.
What is CAGR? (Explained Simply)
CAGR (Compound Annual Growth Rate) is the annual rate at which your investment grows, assuming profits are reinvested. It's not the same as "the market went up 12% last year." It's the smoothed, annualized return that accounts for compounding over multiple years.
Think of it this way: If you invest ₹1 lakh and it becomes ₹3.1 lakhs in 10 years, the CAGR is 12% — even though the actual annual returns varied from -15% to +45% during that period.
What Returns Can You Realistically Expect from SIP?
| Fund Category | Historical CAGR (15 yrs) | Risk Level | Best For |
|---|---|---|---|
| Large Cap Funds | 10–12% | Low-Medium | Conservative investors |
| Flexi/Multi-Cap | 11–13% | Medium | Balanced growth |
| Mid Cap Funds | 13–16% | Medium-High | Aggressive SIP investors |
| Small Cap Funds | 15–20% | High | Long-term (15+ yr) only |
| Index Funds (Nifty) | 10–12% | Low | Passive investors |
₹5,000/Month SIP: Returns at 10%, 12%, 15%
| Duration | @ 10% CAGR | @ 12% CAGR | @ 15% CAGR |
|---|---|---|---|
| 5 Years | ₹3.87 L | ₹4.12 L | ₹4.48 L |
| 10 Years | ₹10.33 L | ₹11.58 L | ₹13.93 L |
| 15 Years | ₹20.89 L | ₹25.22 L | ₹33.88 L |
| 20 Years | ₹38.28 L | ₹49.93 L | ₹75.79 L |
| 25 Years | ₹66.46 L | ₹94.88 L | ₹1.65 Cr |
Notice how 3% more CAGR (12% vs 15%) nearly doubles your corpus at 25 years. This is why fund selection and staying invested in equity matters so much.
SIP Returns Calculator by CAGR ↓
📈 Multi-CAGR SIP Returns Comparison
10% CAGR
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12% CAGR
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15% CAGR
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Why 12% is the Standard Planning Figure
Most financial planners use 12% CAGR for long-term equity SIP projections because:
- Nifty 50 has historically delivered ~12% CAGR over 20-year rolling periods
- It's conservative enough to account for bad years and market corrections
- It's higher than inflation (6-7%), ensuring real wealth creation
- Most diversified equity funds have met or exceeded this benchmark
⚠️ Important Disclaimer
SIP returns are market-linked and NOT guaranteed. Always plan with conservative estimates (10-12%) and treat higher returns as a bonus, not a baseline.
Calculate Your SIP at Any Return Rate ↓
Our calculator lets you set any expected return rate from 1% to 30%. Try different scenarios to plan confidently.
Open SIP Calculator →Frequently Asked Questions
What is CAGR in SIP?
CAGR stands for Compound Annual Growth Rate. It represents the annualized rate at which your investment grows. For equity mutual funds in India, 10-15% CAGR is commonly used for long-term projections.
What is a realistic SIP return expectation?
Large-cap equity funds: 10-12% CAGR. Mid-cap funds: 12-15% CAGR. Small-cap funds: 15-18% CAGR (higher risk). A conservative estimate of 12% is typically used for planning.
Does SIP guarantee returns?
No. SIP returns are market-linked and not guaranteed. Historical data shows Indian equity mutual funds have delivered 10-15% CAGR over 15+ year periods, but past performance does not guarantee future results.
Which SIP gives 15% returns?
Mid-cap and small-cap equity mutual funds have historically delivered 13-18% CAGR over long periods (15+ years). However, they also carry higher short-term volatility.