SIP Calculator
Plan your mutual fund investments with our SIP return calculator.
Invested Amount
Wealth Gained
Maturity Value
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan, commonly known as SIP, is an investment method offered by mutual funds where you invest a fixed amount at regular intervals (usually monthly). SIPs allow you to invest in mutual funds in a disciplined manner without worrying about market timing. By investing regularly, you benefit from rupee cost averaging and the power of compounding over time.
How Does SIP Work?
When you start a SIP, a fixed amount is automatically debited from your bank account every month and invested in the mutual fund scheme of your choice. Since the investment happens at regular intervals regardless of market conditions, you buy more units when the market is low and fewer units when the market is high. This averaging effect helps reduce the overall cost per unit over the long term.
SIP Return Calculation Formula
The future value of a SIP is calculated using the formula: FV = P × [((1 + r)n - 1) / r] × (1 + r), where P is the monthly SIP amount, r is the expected monthly rate of return, and n is the total number of monthly investments. This formula accounts for the compounding effect on each monthly installment.
Benefits of SIP Investing
SIP investing offers multiple advantages for both new and experienced investors. It instills financial discipline by automating your investments. The rupee cost averaging mechanism protects you from market volatility. Compounding works powerfully over long durations, meaning even small monthly investments can grow into substantial wealth. SIPs are also highly flexible—you can start with amounts as low as ₹500 per month, increase your SIP amount over time, and pause or stop your SIP at any point.
Using the SIP Calculator
Our SIP calculator helps you estimate the future value of your systematic investments. Enter your monthly SIP amount, expected annual return rate, and investment duration to see the projected maturity value. The calculator also shows the total amount invested versus the wealth gained, giving you a clear picture of how compounding amplifies your returns. Try different combinations of amount, return rate, and duration to find the investment strategy that best suits your financial goals.
Frequently Asked Questions
SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds. Each month, units of the mutual fund are purchased at the prevailing NAV. Over time, this builds wealth through the power of compounding and rupee cost averaging.
Most mutual fund houses allow you to start a SIP with as little as ₹500 per month. Some AMCs even offer SIPs starting at ₹100. There is no maximum limit for SIP investments, making it accessible to investors across all income levels.
No, SIP returns are not guaranteed as they are market-linked investments. The returns depend on the performance of the underlying mutual fund scheme. However, historical data shows that SIPs in diversified equity funds have delivered average returns of 12-15% over 10+ year periods. Our calculator uses the return rate you specify for estimation.
In SIP, you invest a fixed amount regularly regardless of market conditions, benefiting from rupee cost averaging. In lump sum, you invest the entire amount at once. SIP is better for salaried individuals and reduces timing risk, while lump sum can be beneficial when markets are at a low point.
Yes, SIPs are completely flexible. You can increase or decrease your SIP amount, pause it temporarily, or stop it permanently without any penalty. Some AMCs also offer step-up SIPs where the investment amount increases automatically by a fixed percentage each year.