SIP Calculator
Calculate the future value of your Systematic Investment Plan (SIP) with year-wise breakdown and growth charts.
Enter your SIP details and click
Calculate SIP Returns
What is a SIP Calculator?
A SIP (Systematic Investment Plan) calculator helps you estimate the future value of your regular monthly investments in mutual funds. It uses the power of compounding to show how small, consistent investments can grow significantly over time.
SIP Calculation Formula
FV = P × [{(1 + r)n – 1} / r] × (1 + r)
Where:
- FV = Future Value of the investment
- P = Monthly SIP amount
- r = Monthly rate of return (annual rate ÷ 12 ÷ 100)
- n = Total number of monthly installments
Benefits of SIP
- Rupee Cost Averaging: You buy more units when prices are low and fewer when prices are high
- Power of Compounding: Your returns earn returns over time
- Disciplined Investing: Regular investing builds wealth systematically
- Flexibility: Start with as low as ₹500 per month
SIP Calculation Example
If you invest ₹5,000 per month via SIP at an expected annual return of 12% for 10 years:
- Total Amount Invested: ₹6,00,000 (₹5,000 × 120 months)
- Estimated Returns: ₹5,61,695
- Future Value: ₹11,61,695
Your money nearly doubles! With the same SIP for 20 years, the future value grows to approximately ₹49,95,740 — the power of long-term compounding.
Frequently Asked Questions
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SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly (usually monthly) in mutual funds. It helps build wealth over time through disciplined, consistent investing.
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SIP provides rupee cost averaging, which reduces the impact of market volatility. Lump sum can give better returns in a consistently rising market. For most investors, SIP is recommended as it reduces timing risk and enforces discipline.
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Yes, most mutual fund houses allow you to increase, decrease, or pause your SIP amount. Some offer step-up SIP where the amount automatically increases each year.
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Most mutual funds in India accept SIP investments starting from ₹500 per month. Some funds may have a minimum of ₹1,000 or ₹100.
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No. SIP returns depend on market performance and the type of mutual fund chosen. The calculator provides estimates based on assumed returns. Actual returns may vary.
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SIP invests in mutual funds (market-linked, potentially higher returns) while RD (Recurring Deposit) is a bank product with fixed, guaranteed returns. SIP carries market risk but historically delivers better long-term returns.