# Advanced SIP Calculator

## SIP XIRR Calculator

Enter your ongoing SIP details and current portfolio value to find out your true XIRR (annualized returns).

- **Monthly SIP (₹)**
- **Initial Lump Sum (₹)**
- **Duration (Years)**
- **Current Value (₹)**
- **Enable Annual Step-up**  
  I increase my SIP amount every year  
  **Step-up Percentage** 10%

Calculate Returns →

- **Total Invested**
- **Absolute Profit**
- **Annualized Return (XIRR)**

**Benchmark:** If you invested the exact same amounts via FD @ 7%, you'd have today.

## What is SIP XIRR?

**XIRR (Extended Internal Rate of Return)** is the most accurate way to measure your SIP returns. Unlike CAGR or absolute returns, XIRR accounts for:

- The **exact date** of each SIP installment
- The **amount** of each investment
- Step-up SIPs where you increase the amount annually
- Any additional lump sum investments

### 💡 Simple Explanation

XIRR tells you: "If I had invested all this money at once and earned a fixed annual return, what rate would give me the same final value?" It's like converting your messy SIP history into one clean annual percentage.

## Why Your AMC App Shows Different Returns

Mutual fund apps often show **absolute returns** or **CAGR**, but neither accounts for when you invested. Here's the difference:

### Absolute Return

Total profit as % of invested — ignores time completely

### CAGR

Assumes lump sum at start — wrong for SIP

### XIRR ✓

Accounts for each SIP date — the true answer

## How to Use Our SIP XIRR Calculator

1. Go to [TrueXIRR.com](/content/site-root.html)
2. Sign in with Google (free, just for saving preferences)
3. Click **"SIP / Mutual Fund"** card
4. Enter your monthly SIP amount, start date, and current portfolio value
5. Optionally enable **step-up SIP** if you increase SIP annually
6. See your instant XIRR with FD comparison!

## What is Step-Up SIP?

A **step-up SIP** (or top-up SIP) means you increase your SIP amount every year — typically by 10-15% to match salary increments. Our calculator handles this automatically.

### Example: Step-Up SIP

| Year | Monthly SIP |
| --- | --- |
| 2023 | ₹5,000 |
| 2024 | ₹5,500 (+10%) |
| 2025 | ₹6,050 (+10%) |

## Compare Your SIP Returns with FD

Our calculator shows you what your money would have grown to if you'd invested in a Fixed Deposit at 7% p.a. instead. This helps you understand if your mutual fund is actually beating inflation and safe alternatives.

### ✅ Good Benchmark

If your SIP XIRR is above 12%, you're likely beating most FDs and inflation-adjusted returns. Below 7%? Consider reviewing your fund selection.

## Frequently Asked Questions

### Is this calculator accurate?

Yes! We use the industry-standard XIRR formula (Newton-Raphson method) with 200 iterations and leap-year accuracy. Use our "Verify in Excel" feature to see the exact cashflows and cross-check with Excel's =XIRR() function.

### Does it work for lump sum investments?

Yes! Use the optional "Initial Lump Sum" field to add a one-time investment at the start. The calculator handles both lump sum and regular SIP contributions together.

### Why do I need to sign in?

Sign-in helps us manage your session and offer Pro features. Your SIP data is calculated entirely in your browser — we never store your financial information.

### Know Your True SIP Returns

Stop guessing. Calculate your XIRR in under a minute.

[Calculate SIP XIRR →](/content/site-root.html)