SIP & lumpsum — value, gain, tax

Assumed returns are just that. What is certain is the tax on the way out — so both are shown.

Mode Amount (₹) — monthly SIP, or one-time Expected annual return (%) Years Yearly step-up (%, SIP only)

The rules this tool applies

SIP maths: each instalment at the start of the month, compounded monthly at return ÷ 12; step-up raises the instalment once a year. Lumpsum compounds annually.
Equity funds (65%+ equity): units held over 12 months → LTCG at 12.5% under s.112A after a ₹1.25 lakh annual exemption; 12 months or less → STCG 20% (s.111A). Each SIP instalment has its own holding period (FIFO).
Debt funds bought after 1 April 2023: gains taxed at slab whatever the holding period. Hybrid/gold/international funds follow the "other assets" 24-month rule at 12.5%.
ELSS: the only fund that qualifies for 80C (s.123), 3-year lock-in per instalment — old regime only.
No TDS on redemption for residents; the AMC reports it in AIS. Dividends (IDCW) are taxable at slab with 10% TDS above ₹10,000 a year.

Worked example

₹10,000 a month for 10 years at 12%: invested ₹12,00,000 → ₹23,23,391, gain ₹11,23,391. With a 10% yearly step-up: invested ₹19,12,491 → ₹33,74,326. Lumpsum ₹5,00,000 for 10 years at 12% → ₹15,52,924. Redeeming the first SIP in one go: gain ₹11,23,391 − ₹1,25,000 exempt = ₹9,98,391 × 12.5% ≈ ₹1,24,799 tax (+ cess).

Edge cases to know

Return is an assumption — Nifty 50 has delivered roughly 11–13% a year over long periods with deep drawdowns in between; nothing here is guaranteed.
Exit loads (typically 1% within a year) and expense ratios are not modelled.
Harvesting: redeeming up to ₹1.25 lakh of LTCG each year and reinvesting resets cost — legal, commonly used.
ITR-4 filers: capital gains beyond small 112A LTCG push you to ITR-3 — see the decider.

Related tools

Capital gains calculator — the exact exit tax.
PPF calculator — the tax-free fixed alternative.
NPS calculator.

Last verified: 18 September 2026 — LTCG/STCG rates per Finance (No.2) Act 2024 carried into the Income-tax Act 2025 (s.111A/112A equivalents); ELSS 80C → s.123. Rates: Ministry of Finance notification of 30 June 2026 for July–September 2026 (ninth unchanged quarter); re-checked quarterly. · Not tax advice.