NRI SIP Calculator: Calculate Your Investment Returns in USD/INR

Hi,

Here's something I find genuinely fascinating about being an NRI investor — you're essentially playing two games at once.

Game one: your mutual fund returns in India. Game two: the USD-INR exchange rate doing its own little dance in the background. You might be earning 12% CAGR on your SIP, but if the rupee weakens 3-4% against the dollar in the same period, your real returns in USD look quite different.

I got a message last month from a friend in Houston. He'd been running a SIP of ₹25,000/month for three years. His portfolio was up ~34% in INR terms. Solid. But when he converted it back to dollars to check his "actual" returns? Closer to ~22%. That gap between perceived returns and real returns (in your spending currency) is exactly why you need an NRI SIP calculator that factors in currency conversion.

So let's dig into how these calculators actually work, why they matter if you're investing from abroad, and how to use one properly.

Let's begin.

What is SIP and Why NRIs Should Use It

For the uninitiated — SIP stands for Systematic Investment Plan. It's a method of investing a fixed amount at regular intervals (usually monthly) into a mutual fund scheme. Think of it as an EMI, except instead of paying off debt, you're building wealth. Pretty neat, right?

Now, why does SIP make particular sense for NRIs?

Three reasons stand out:

1. You can't time the Indian market sitting in New York or Dubai. SIPs remove the timing problem entirely through rupee cost averaging — you buy more units when markets are low, fewer when they're high, and it averages out over time.
2. Automation is your friend. Link your NRE or NRO account, set the auto-debit, and your SIP runs on autopilot. No need to wake up at odd hours to track the Sensex.
3. The compounding runway is long. Most NRIs invest with 10-20 year horizons (retirement, kids' education, eventual return to India). SIPs and long horizons are a match made in compounding heaven.

India's GDP growth continues to hover around 6-7% annually, and NRI remittances hit a record ~$135 billion in FY 2024-25. The confidence in India's financial ecosystem is clearly growing, and SIPs remain one of the most accessible ways to participate in that story from overseas.

(Read: Mutual Funds Services)

How the NRI SIP Calculator Works

An NRI SIP calculator is, at its core, a compound interest calculator with a few extra features bolted on. Here's the basic formula running under the hood:

Where:

• M = maturity amount (future value)
• P = monthly SIP amount
• r = monthly rate of return (annual rate ÷ 12)
• n = total number of SIP installments

So if you're investing ₹10,000/month at an expected 12% annual return for 15 years:

• P = ₹10,000
• r = 12% / 12 = 1% = 0.01
• n = 15 × 12 = 180

Plug those in, and you get a maturity value of ~₹50.5L.

Fair enough. But here's where an NRI SIP calculator goes a step further.

The Currency Conversion Layer

A standard SIP calculator stops at INR returns. An NRI-specific calculator adds:

• Input currency selection: Enter your SIP amount in USD, AED, GBP, SGD, or CAD — and it converts to INR at current rates for the calculation
• Output currency toggle: View your projected corpus in both INR and your home currency
• Rupee depreciation assumption: Factor in an annual depreciation rate (historically ~3-4% per year against USD) to see realistic dollar-denominated returns

This third point is crucial. The rupee has historically depreciated against the dollar at roughly 3-4% annually over long periods. Ignoring this means you're overestimating your returns in dollar terms.

(Try our SIP Calculator)

Understanding Currency Conversion in Returns

Let's get into the numbers here, because this is where it gets interesting (and a tad bit sobering for some).

As of mid-February 2026, the USD-INR rate is hovering around ~₹90.6 per dollar. Various forecasts for the rest of 2026 show a range of ₹86 to ₹93, depending on who you ask. That's quite the spread, which tells you something about how uncertain currency movements can be.

Now here's a worked example:

Scenario: ₹10,000/month SIP for 10 years at 12% CAGR

But wait — that USD column assumes the exchange rate stays flat at ₹90 for 10 years. Not realistic.

Now let's factor in ~3% annual rupee depreciation:

After 10 years, if the rupee depreciates to ~₹121 per dollar (compounding at 3%/year from ₹90), your ₹23.2L corpus in USD would be closer to ~$19,200. That's a difference of ~$6,600 compared to the flat-rate assumption.

The gap between your INR returns and USD returns isn't a bug — it's a feature of investing cross-border. Understanding it is half the battle.

The flip side? If you're investing dollars into India and the rupee strengthens (which does happen in shorter windows), you actually get a currency bonus on top of your fund returns. This worked beautifully for NRIs who invested during 2020-21 when the dollar was strong, and saw the rupee recover partially.

Step-by-Step: Using the NRI SIP Calculator

Here's a practical walkthrough. Doesn't matter which calculator you use — the inputs are broadly the same.

Step 1: Enter Your Monthly SIP Amount

Choose your currency first. If you're in the US, enter in USD. The calculator converts to INR using the current exchange rate. Say you want to invest $200/month — that's roughly ₹18,000 at today's rate of ₹90.

Step 2: Select Expected Rate of Return

This is where you need to be honest with yourself.

• Conservative (debt/hybrid funds): 7-9%
• Moderate (large-cap equity): 10-12%
• Aggressive (mid/small-cap equity): 13-16%

Don't plug in 15% and call it a day unless you're genuinely comfortable with mid/small-cap volatility. I'd recommend using 10-12% for most equity SIP projections — it's realistic based on long-term Nifty performance.

Step 3: Set Your Investment Duration

The magic of SIP really kicks in after 7-10 years. Here's a quick exhibit to show why:

₹10,000/month SIP at 12% CAGR:

Observations:

• At 5 years, your gains are ~37% of the invested amount
• At 15 years, gains are ~180% of invested amount
• At 20 years, gains are ~316% — compounding goes absolutely ballistic in the later years

Step 4: Add Currency Depreciation Assumption

This is the NRI-specific step. Input an annual depreciation rate for INR vs. your home currency:

• USD: Use 3-4% (historical average)
• AED/SGD: Use 2-3% (pegged or semi-pegged currencies)
• GBP/EUR: Use 1-2% (varies more)

Step 5: Review the Dual-Currency Output

Your calculator should now show two numbers:

• INR corpus: What your SIP will be worth in Indian rupees
• Home currency corpus: What it translates to after accounting for projected currency movement

The delta between these two numbers is your currency risk. Or if you prefer — your reality check.

Benefits of SIP for NRIs

I could list the textbook benefits, but honestly, most of them boil down to three core advantages that matter specifically for NRIs:

Rupee Cost Averaging (Your Best Friend Abroad)

When you can't monitor Indian markets daily (and you shouldn't — you've got a life to live), rupee cost averaging does the heavy lifting. Your ₹10,000 buys more units during a crash and fewer during a rally. Over 10-15 years, this averaging effect can meaningfully reduce your effective cost per unit.

The Compounding + Depreciation Combo

Here's the thing most people miss. If the rupee depreciates 3% annually while your SIP earns 12%, you're still getting ~8-9% real returns in USD terms. That's quite competitive with US equity returns (S&P 500 averages ~10% nominal, but inflation takes a bigger bite there).

So you're not just "losing" to depreciation — you're playing a different game with potentially similar net outcomes, while also staying invested in one of the world's fastest-growing major economies.

Tax Efficiency (With Some Caveats)

NRIs investing via SIP enjoy certain tax benefits in India. Equity mutual fund gains up to ₹1.25L annually are exempt from LTCG tax. Beyond that, it's 12.5% (post Union Budget 2025 changes). Short-term gains (under 1 year for equity) are taxed at 20%.

But — and this is important — you'll also need to check your country of residence's tax treatment. The US, for instance, treats Indian mutual funds as PFICs (Passive Foreign Investment Companies), which have notoriously unfavourable tax treatment. NRIs in the US and Canada face additional FATCA compliance requirements too.

(Read: Tax Planning Services)

Top SIP Funds for NRI Investors

Now, I'm not going to give specific "buy this fund" recommendations (that's what a financial advisor is for). But I can share the categories and some consistently well-performing names that NRIs tend to gravitate towards.

Large-Cap Funds (Stability First)

For NRIs who want India exposure without losing sleep, large-cap funds invest in the top 100 companies by market cap. Lower volatility, steady growth.

Worth looking at: Funds from houses like ICICI Prudential, SBI, and Nippon India have shown consistent 5-year annualised returns in the 15-21% range (as of late 2025 data). Expense ratios for direct plans typically run 0.5-1%.

Flexi-Cap / Multi-Cap Funds (Best of All Worlds)

These give the fund manager freedom to move between large, mid, and small caps based on market conditions. Good for NRIs who want diversification without managing multiple SIPs.

Mid-Cap Funds (Growth Seekers)

Higher risk, but historically higher returns. Some mid-cap funds have delivered 25-30% annualised returns over 5 years. That said, allocate 20-30% max to this category, not your entire SIP.

Index Funds (The Passive Route)

If you want simplicity and low costs, Nifty 50 or Nifty Next 50 index funds are excellent choices. Expense ratios as low as 0.1-0.2%, no fund manager risk, and you ride the broad market.

ELSS Funds (Tax Saving + Growth)

If you have taxable income in India, ELSS funds offer Section 80C benefits with a 3-year lock-in. Shortest lock-in among 80C options, with equity-linked returns.

A sensible NRI SIP portfolio might look like:

One important note for US/Canada NRIs: Not all Indian AMCs accept investments from US or Canadian residents due to FATCA compliance requirements. Always verify with the fund house before starting a SIP.

FAQs About NRI SIP Investments

Can NRIs invest in mutual fund SIPs in India?

Yes, absolutely. NRIs, PIOs, and OCIs can all invest in Indian mutual fund SIPs. You'll need an NRE or NRO bank account linked to your mutual fund folio, and KYC compliance is mandatory. The entire process can be done online these days.

Which account should I use — NRE or NRO?

NRE if you want full repatriability (sending money back abroad). NRO if you're investing Indian-sourced income (like rental income). For SIPs funded from your overseas salary, NRE is almost always the better choice.

How does currency fluctuation affect my SIP returns?

The rupee has historically depreciated ~3-4% annually against the USD. So your effective returns in dollar terms will typically be 3-4% lower than your INR returns. An NRI SIP calculator with currency conversion lets you project this gap accurately.

Is there a minimum amount to start SIP as an NRI?

Most mutual fund houses allow SIPs starting from ₹500 or ₹1,000 per month. Some even allow ₹100. The minimum is the same for NRIs as it is for resident Indians.

Can I pause or stop my SIP?

Yes. You can pause, modify, or cancel your SIP at any time by submitting a request to your mutual fund house or through your investment platform. No penalties.

What about taxes on SIP returns for NRIs?

For equity mutual funds held over 1 year, LTCG above ₹1.25L is taxed at 12.5%. Below 1 year, STCG is taxed at 20%. TDS is deducted at source for NRIs. Remember to factor in your country of residence's tax obligations as well — DTAA benefits may be available.

Are SIP returns guaranteed?

No. SIP returns are market-linked and depend on the performance of the underlying mutual fund. There are no guaranteed returns. That said, historically, equity SIPs over 10+ years have rarely delivered negative returns in India.

Putting It All Together

Here's the thing about using an NRI SIP calculator — it's not about getting a precise number (markets don't follow calculators, after all). It's about building the right mental model.

You need to understand three things:

• What your SIP can potentially grow to in INR
• What that translates to in your actual spending currency
• What the gap between those two numbers tells you about your currency exposure

If you get those three right, you're already ahead of most NRI investors who just look at their fund statement in rupees and call it a day.

Start with a modest SIP — even ₹5,000-₹10,000/month. Set up the auto-debit. Use a calculator to set realistic expectations. And then? Just let time and compounding do their thing.

See you around, becoming an Intelligent Investor!

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i2Finserv specializes in mutual funds, insurance, and AIFs for NRIs and foreign nationals. Based in Faridabad, Delhi NCR, serving global clients. Whether you need help setting up your first SIP or want a comprehensive NRI financial plan with currency considerations, we've got you covered.

Disclaimer 1: All above views are purely for educational purposes and are not to be taken as investment advice. Investment or trades taken of any kind based on this are solely the person's risk and I bear no liability. Please consult a financial advisor before making any investments. All investments are subject to market risks.

Disclaimer 2: The views presented above are mine and not of any organization(s) I work with / studying at / am employed at.