SIP Calculator
Calculate your Systematic Investment Plan returns and plan your investments. Estimate maturity amount, total investment, and potential gains with accurate projections.
About SIP Calculator
The SIP Calculator helps you estimate returns on your Systematic Investment Plan. It considers factors like monthly investment, investment period, and expected returns to provide accurate projections. Use it to plan your investments and achieve your financial goals.
Step 1: Enter Monthly Investment
Input your planned monthly SIP amount
Step 2: Set Investment Period
Choose your investment duration in years
Step 3: Enter Expected Returns
Specify your expected annual rate of return
Step 4: View Results
Get detailed projections of maturity amount and wealth gained
How to Use the Calculator
Step 1: Enter Investment Details
Input your monthly SIP amount and investment period
Step 2: Set Return Expectations
Specify your expected rate of return and inflation rate
Step 3: Analyze Results
Review the projected maturity amount and wealth gained
Step 4: Plan Your Investment
Use the insights to make informed investment decisions
SIP Guide for India — Formula & Worked Example
A Systematic Investment Plan (SIP) invests a fixed rupee amount in a mutual fund at regular intervals (usually monthly). Returns are not guaranteed — they depend on the fund’s NAV performance. This calculator projects corpus using an assumed annualised return (CAGR), which is useful for goal planning, not a promise of future returns.
The standard future-value formula for a monthly SIP is:
FV = P × [((1 + r)^n − 1) / r] × (1 + r)
where P is the monthly investment, r is the monthly rate (annual rate ÷ 12), and n is the number of months.
Worked example: ₹10,000/month for 15 years at an assumed 12% p.a. → monthly rate ≈ 1%. Total invested = ₹18 lakh. Projected corpus ≈ ₹50.5 lakh (wealth gain ≈ ₹32.5 lakh). Change the rate to 10% or 14% in the calculator to see how sensitive long SIPs are to return assumptions.
When to use this tool: retirement corpus estimates, child education goals, comparing “how much SIP do I need?” scenarios. When not to: treating the output as a guaranteed maturity like an FD, or picking funds solely on a back-tested CAGR.
Published by HappyMynds / IFSCNOW Editorial. Also read PPF vs ELSS and try the PPF Calculator.
Benefits
Rupee Cost Averaging
Buy more units when prices are low and fewer when prices are high
Power of Compounding
Earn returns on your returns, leading to exponential growth
Disciplined Investing
Regular investments help build wealth systematically
Flexible Investment
Start with small amounts and increase as your income grows
Risk Management
Spread your investment across different market conditions
Goal Planning
Plan and achieve your financial goals with systematic investing
Key Features
Frequently Asked Questions
What is SIP?
Systematic Investment Plan (SIP) is an investment method where you invest a fixed amount regularly in mutual funds. It helps in rupee cost averaging and building wealth over time.
How is SIP return calculated?
SIP returns are calculated using the compound interest formula, considering monthly investments and the power of compounding over the investment period.
What are the benefits of SIP?
Benefits include rupee cost averaging, power of compounding, disciplined investing, flexibility in investment amount, and potential for long-term wealth creation.
How does rupee cost averaging work in SIP?
Rupee cost averaging means you buy more units when prices are low and fewer when prices are high, averaging out your purchase cost over time.
Can I change my SIP amount?
Yes, most mutual funds allow you to increase or decrease your SIP amount. You can also pause or stop your SIP at any time.