SIP Calculator 2026-27 with Tax + Retirement Preview

For equity mutual funds (≥65% equity), post-Budget 2024 rates continue in FY 2026-27:
• LTCG (held 12+ months): 12.5% on gains above ₹1.25L per year, under Section 112A
• STCG (held <12 months): 20% flat, under Section 111A

For debt mutual funds (units post 1 April 2023): all gains taxed at your slab rate, no indexation, under Section 50AA.

Each SIP installment has its own holding period, calculated on a FIFO basis when you redeem.

Step-up SIP increases your monthly investment by a fixed % every year (usually 10%, matching salary hike).

Real math: ₹10,000/month SIP at 12% for 25 years = ₹1.89 Cr. With 10% annual step-up = ₹4.95 Cr. That's 2.6× larger corpus with same starting amount.

Most apps offer auto step-up. Strongly recommended if you're under 40 — your investment power should grow with your salary.

Yes — among mutual funds, only ELSS (Equity Linked Savings Scheme) qualifies for Section 80C deduction (up to ₹1.5L per year):
• 3-year lock-in (shortest 80C option — vs PPF 15yr, NSC 5yr)
• Equity taxation on exit (12.5% LTCG above ₹1.25L)
• Potential for higher long-term returns (11-13% historical)

Critical: Section 80C deduction available ONLY in Old Tax Regime, not New Regime (default from FY 2024-25). New Regime users get no ELSS tax benefit beyond standard equity treatment.

Math: In a steadily rising market, lumpsum slightly outperforms (money working longer). In volatile/sideways markets, SIP wins via rupee-cost averaging.

Practical: SIP is better for 95% of investors because:
• Most don't have ₹10L+ idle for lumpsum
• Removes emotional market timing
• Builds discipline + habit
• Indian market had 8+ corrections of 15%+ in last 20 years — averaging matters

Use lumpsum only when you have a windfall AND markets are in clear 15%+ correction.

Long-term historical averages (15-20 year basis):
• Nifty 50 / Large-cap: 11-12%
• Multi-cap / Flexi-cap: 12-13%
• Mid-cap: 13-15%
• Small-cap: 14-16% (high volatility)
• Hybrid (Aggressive): 10-11%
• Debt: 6-7%
• ELSS: 11-13%

Default 12% for long-term equity planning. Avoid 18-20% — that's last year's hype, not sustainable. Use the "Worst case" scenario above (2% lower) as your floor for goal planning.

Yes — SIPs are completely flexible:
• Pause: Most apps allow 1-6 month pause
• Modify: Increase/decrease amount, change date — anytime
• Stop: Cancel SIP with one click. No penalty.
• Redeem units: Anytime (subject to fund exit load, usually 1% if <12 months)

Exception: ELSS units have 3-year lock-in from each SIP date. Can stop the SIP itself, but already-invested units must wait 3 years.

Only when you redeem (sell) the units. Running SIP doesn't trigger tax. Once you redeem:
• Gain ≤ ₹1.25L (equity LTCG): No tax, still report in ITR-2/ITR-3 Schedule CG
• Gain > ₹1.25L: 12.5% tax, report in ITR-2/ITR-3
• STCG (<12 months): 20% tax, Schedule CG
• Debt MF: Slab rate, Schedule OS/CG based on holding

Most brokers (Zerodha, Upstox, Groww) provide Tax P&L statement. VittSphere ONE auto-imports and generates ITR-ready computation — saves 3-4 hours.

SWP (Systematic Withdrawal Plan) is the reverse of SIP. After building corpus (at retirement), you withdraw fixed amount monthly while remaining corpus continues earning returns.

Famous "4% Rule": withdraw 4% of corpus annually, money never runs out (assuming 8% portfolio return).

SWP Tax Advantage: Each withdrawal = redemption. For equity funds held 12+ months, gains qualify for 12.5% LTCG above ₹1.25L per year — far cheaper than FD interest at slab rate (could be 30%).

Example: ₹2 Cr corpus at 4% SWP = ₹66,667/month tax-efficient income, with corpus potentially lasting forever in moderate-return scenario.

Yes — this is one of our key differentiators vs other SIP calculators. We show:
• Nominal corpus: Actual ₹ amount you'll get
• Real value: Inflation-adjusted purchasing power

India's long-term inflation: ~6.5%. ₹1 Cr nominal in 20 years = ₹28L in today's purchasing power. Most calculators only show nominal — dangerously misleading for goal planning. Always plan retirement, kids' education, home goals in inflation-adjusted terms.