SIP Calculator
Plan your Systematic Investment Plan
What Is This Calculator?
Systematic Investment Plan (SIP) is an investment strategy where you invest a fixed amount regularly in mutual funds, typically monthly. SIPs leverage the power of rupee-cost averaging and compound interest to build wealth over time, making them one of the most popular investment methods for retail investors in India. The key advantage of SIP is discipline—investing a fixed amount regardless of market conditions. When markets are down, your fixed amount buys more units; when up, it buys fewer. Over time, this averages out your purchase cost (rupee-cost averaging) and reduces the impact of volatility. SIP calculators help you project the future value of your investments based on expected returns. While actual returns vary with market performance, long-term equity mutual fund SIPs have historically delivered 10-14% annual returns, making them effective wealth-building tools. The formula accounts for each monthly investment growing at the expected rate for its remaining period. Earlier investments have longer to compound, while later ones compound for shorter periods, all summed to the final value.
Formula Used
FV = P x [((1+r)^n - 1) / r] x (1 + r)
How To Use This Calculator
- 1Enter your planned monthly investment amount
- 2Enter your expected annual return rate
- 3Enter the investment tenure in years
- 4View your projected corpus and total investment
Example Calculation
Inputs
Monthly Investment: 10,000
Expected Return: 12% p.a.
Tenure: 10 years
Calculation Steps
Monthly rate: 12% / 12 = 1% = 0.01
Months: 10 x 12 = 120
FV = 10,000 x [((1.01)^120 - 1) / 0.01] x 1.01
FV = 10,000 x [3.30 / 0.01] x 1.01
FV = 10,000 x 230.04 x 1.01 = 23,23,391
Result
Invested: 12,00,000 | Returns: 11,23,391 | Total: 23,23,391
Common Use Cases
- •Planning wealth creation for long-term goals
- •Estimating retirement corpus
- •Calculating education fund requirements
- •Comparing SIP with lumpsum investments
- •Setting realistic investment targets
Frequently Asked Questions
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Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered professional advice. Always consult qualified professionals for specific decisions related to health, finance, or other important matters.