SIP Calculator

Calculate the future value of your Systematic Investment Plan.

$
%
yr
Total Value
$116,170
Invested Amount
$60,000
Estimated Returns
+$56,170

Frequently Calculated SIPs

500 SIP1,000 SIP2,000 SIP5,000 SIP10,000 SIP20,000 SIP50,000 SIP

How to Use

1

Enter monthly investment amount

Set the fixed monthly SIP amount in rupees or your local currency.

2

Set expected annual return rate

Use historical equity fund averages (12-15% India), or 6-8% for debt funds.

3

Set the investment period

Enter years to reinvest. Longer periods dramatically increase compounding effects.

4

Compare capital vs returns

View total invested versus total wealth including compound growth over time.

What is an SIP?

A Systematic Investment Plan allows you to invest a fixed amount regularly (usually monthly) in a mutual fund or stock portfolio. This strategy helps average out market volatility (rupee/dollar cost averaging) and builds substantial wealth over time via compounding.

Frequently Asked Questions

Is SIP better than Lumpsum investing?

It depends on market conditions. SIPs are generally safer as they average out market volatility over time. Lumpsum can yield better returns if you invest right before a major bull run, but carries higher timing risk.

Can I stop my SIP at any time?

Yes, most mutual fund SIPs are completely flexible. You can pause, stop, or increase your SIP amount at any time without any penalties, unless you are invested in an ELSS (tax-saving) fund which has a 3-year lock-in period.

Real-World Examples & Use Cases

Wealth Creation for Long-Term Goals

SIPs are the primary wealth-creation vehicle for middle-class Indians building toward long-term goals like children's education, home purchase, or retirement. Investing ₹10,000 per month in an equity mutual fund at 12% annual returns for 20 years produces approximately ₹99.9 lakh (nearly ₹1 crore), with only ₹24 lakh of total capital invested. The remaining ₹75.9 lakh comes entirely from compound growth. This illustration — showing capital contributed versus wealth generated — is the most persuasive argument for starting SIPs early.

Goal-Based Financial Planning

SIPs are used for specific financial goals with defined timelines. A parent wanting ₹50 lakh in 15 years for a child's education needs to invest approximately ₹11,200 per month at a 12% expected return. The SIP calculator works both forward (how much will my ₹5,000/month grow to?) and backward (how much must I invest monthly to reach ₹50 lakh in 15 years?). Goal-based SIPs are linked to specific instruments (education funds, children's plans) designed for the target timeline.

Rupee Cost Averaging in Volatile Markets

Market timing is notoriously difficult even for professional fund managers. SIPs automate investment regardless of market conditions — buying more units when markets fall (lower NAV) and fewer units when markets are high. Over a full market cycle, this rupee cost averaging delivers a lower average purchase price than a lump-sum investment at the wrong time. SIP calculators that model historical market cycles illustrate how consistent monthly investing through downturns often outperforms intermittent timing attempts.

Retirement Corpus Building

India's lack of a universal pension system makes personal SIP-based retirement savings essential. A 28-year-old investing ₹15,000/month at 13% expected return retires at 60 with approximately ₹10.5 crore. Delaying the start to age 35 reduces this to approximately ₹4 crore — a 2.6x difference from just 7 fewer years of compounding. The SIP calculator's retirement projection feature helps individuals understand how much monthly investment is needed to build a retirement corpus that can sustain their desired lifestyle using the 4% safe withdrawal rate.

How It Works

SIP returns use the Future Value of Annuity formula: FV = PMT × [(1 + r)^n - 1] / r × (1 + r) Where: - FV = Future value (total corpus at end) - PMT = Monthly SIP amount - r = Monthly return rate (annual rate ÷ 12) - n = Total number of payments (years × 12) The final (1 + r) term accounts for returns on the last SIP installment within the same period. Example: ₹10,000/month at 12% annual return for 10 years: - Monthly rate r = 12% / 12 = 1% = 0.01 - n = 120 months - FV = 10,000 × [(1.01)^120 - 1] / 0.01 × 1.01 - FV ≈ ₹23.23 lakh - Total invested = ₹12 lakh - Wealth gain from compounding ≈ ₹11.23 lakh

Frequently Asked Questions

What is SIP and how does it work?▼
SIP (Systematic Investment Plan) automatically deducts a fixed amount from your bank account on a set date each month and invests it in a chosen mutual fund. You receive fund units at the current Net Asset Value (NAV). Over time, you accumulate units bought at various market price levels, benefiting from rupee cost averaging.
What is the minimum SIP amount?▼
Many Indian mutual funds allow SIPs starting from ₹500 per month. Some funds have minimums of ₹1,000. SEBI encourages low minimums to democratize investing. Even ₹500/month at 12% over 25 years grows to approximately ₹9.5 lakh — illustrating that starting small early beats starting big late.
Is SIP better than a lumpsum investment?▼
SIPs are generally safer and better for most investors because they remove market timing risk through rupee cost averaging. Lumpsum investments can outperform in strongly rising markets but underperform if you invest near a market peak. For regular salaried investors without a large lump sum available, SIPs are the practical and often safer option.
What return rate should I use in the SIP calculator?▼
For Indian equity mutual funds: large-cap funds average 10-12%; mid-cap funds average 12-15%; small-cap funds average 15-18% with higher volatility. For debt funds: 6-8%. For planning, use 10-12% for equity to be conservative. Historical returns do not guarantee future performance.
Can I pause or stop my SIP anytime?▼
Yes, most SIPs (except ELSS tax-saving funds with a 3-year lock-in) can be paused, stopped, or increased anytime without penalties. You can also do top-up SIPs that automatically increase your monthly amount by a fixed percentage each year, keeping pace with salary growth and inflation.
Disclaimer: The results provided by this calculator are estimates for informational and educational purposes only and do not constitute professional financial advice. Always consult with a qualified financial advisor before making any major financial decisions.

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