SIP Calculator

Calculate returns on your Systematic Investment Plan

Investment Summary
Total Investment
₹0
Maturity Amount
₹0
Total Gains
₹0

Frequently Asked Questions

Everything you need to know about SIP Calculator

A SIP (Systematic Investment Plan) Calculator is a financial tool that helps you calculate the potential returns on your mutual fund investments made through SIP. It uses compound interest formula to show how your regular monthly investments can grow over time.

  • Financial Planning: Plan your long-term financial goals effectively
  • Investment Amount: Determine how much to invest monthly to reach your target
  • Return Estimation: Get realistic expectations of potential returns
  • Comparison: Compare different investment scenarios and time periods
  • Goal Setting: Set achievable financial milestones

SIP Formula:
M = P × [((1 + r)^n – 1) × (1 + r)] / r
Where:
• M = Maturity Amount
• P = Monthly Investment Amount
• r = Monthly Rate of Return (Annual Rate ÷ 12)
• n = Total Number of Months

A good SIP return rate typically ranges from 10-15% annually for equity mutual funds over the long term. However, returns can vary based on:
  • Market conditions
  • Fund performance
  • Investment duration
  • Economic factors
Conservative investors might expect 8-10%, while aggressive investors might target 12-15%.

Monthly SIP Time Period Expected Return Total Investment Maturity Value Wealth Gain
₹5,000 10 Years 12% ₹6,00,000 ₹11,61,695 ₹5,61,695
₹10,000 15 Years 12% ₹18,00,000 ₹50,01,473 ₹32,01,473
₹15,000 20 Years 12% ₹36,00,000 ₹1,49,85,013 ₹1,13,85,013
₹20,000 25 Years 12% ₹60,00,000 ₹3,78,49,414 ₹3,18,49,414
Power of Compounding: Notice how wealth gain increases exponentially with time!

SIP Advantages:
  • Rupee Cost Averaging
  • Disciplined investing
  • Lower risk due to averaging
  • Flexible investment amounts
  • No market timing required
Lump Sum Advantages:
  • Full market exposure immediately
  • Higher returns in bull markets
  • No transaction frequency
  • Suitable for large amounts
  • One-time investment decision

Investment Goal Time Horizon Recommended Fund Type Expected Return Risk Level
Retirement Planning 20-30 years Equity Diversified 12-15% High
Child Education 10-15 years Balanced/Hybrid 10-12% Medium
House Down Payment 5-7 years Debt/Conservative 7-9% Low
Emergency Fund 1-3 years Liquid/Ultra Short 5-7% Very Low

The SIP Calculator provides estimates based on the assumption of consistent returns. However, actual returns may vary due to:
  • Market volatility
  • Fund management changes
  • Economic conditions
  • Expense ratios and taxes
Use it as a planning tool, not a guarantee of returns.