SIP Calculator

What is an SIP?

A Systematic Investment Plan (SIP) is a method of investing in mutual funds where an investor contributes a fixed amount at regular intervals (monthly, quarterly, etc.). It helps in building wealth over time through the power of compounding and rupee-cost averaging.

The SIP Formula

The future value of an SIP is calculated using the following formula:

M = P × ({[1 + i]^n - 1} / i) × (1 + i)

Where:

M: Maturity Amount
P: Monthly Investment Amount
i: Periodic rate of interest (Annual rate / 12 / 100)
n: Total number of payments (Years × 12)

How to use the SIP Calculator?

Enter your Monthly Investment amount (e.g., ₹5,000).
Choose the Expected Return Rate (e.g., 12% is a common benchmark for equity funds).
Select the Time Period you wish to stay invested (e.g., 10 years).
The calculator instantly shows your total invested amount, estimated returns, and final corpus.

Example:

If you invest ₹5,000 per month for 10 years at an expected return of 12% p.a., your total investment will be ₹6,00,000. Your estimated returns will be ₹5,61,695, resulting in a total maturity value of ₹11,61,695.

FAQs

Is SIP better than Lumpsum?

SIP is generally better for long-term retail investors as it reduces the risk of market timing and averages out the cost of acquisition during market volatility.

Can I stop my SIP anytime?

Yes, mutual fund SIPs are highly flexible. You can stop, pause, or increase/decrease your SIP amount at any time without any penalty.

What is a good return rate to assume for SIP?

For long-term equity SIPs (over 10 years), assuming a return of 12% to 15% is standard. However, actual returns depend on market performance.

Investment Breakup