SIP Calculator
Investment Details
Investment Summary
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Invested Amount
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Grow Your Wealth with the SIP Calculator
A Systematic Investment Plan (SIP) is one of the most effective ways to build wealth over time. By investing a fixed amount regularly in mutual funds, you benefit from Rupee Cost Averaging and the immense Power of Compounding. Our free SIP calculator helps you visualize how small monthly contributions can grow into a massive corpus over the years.
What is an SIP?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount of money at regular intervals (usually monthly) in a mutual fund scheme. It instills financial discipline and frees you from the stress of timing the market.
How are SIP Returns Calculated?
The formula used to calculate the maturity amount for an SIP is:
- M: Maturity amount or Total Value.
- P: Monthly investment amount.
- n: Number of payments (Months).
- i: Periodic interest rate (Annual Rate / 12 / 100).
Top Benefits of Investing via SIP
Power of Compounding
The earlier you start, the more time your money has to grow. Returns earned on your initial investment begin to generate their own returns.
Rupee Cost Averaging
You buy more units when the market is low and fewer when it is high, bringing down the average cost of your investment over time.
Easy on the Wallet
You don't need a large sum to start investing. You can begin a SIP with an amount as small as ₹500 per month.
Financial Discipline
By automating your investments, you ensure that a portion of your income is saved before it can be spent.
Frequently Asked Questions (FAQs)
Are the SIP returns guaranteed?
No, mutual fund returns are subject to market risks. The expected return rate you input is just an estimate based on historical performance. Actual returns may be higher or lower.
Can I stop or pause my SIP?
Yes, SIPs are highly flexible. You can pause, stop, or increase the amount of your SIP at any time without any penalties.
What is a good expected return rate to assume?
Historically, equity mutual funds in India have delivered long-term returns around 10-14% per annum. However, it's safer to estimate conservatively (around 10-12%) for planning purposes.