Finance

SIP Calculator

Calculate the future value of your monthly SIP investments.

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SIP Calculator

Monthly Investment

Expected Annual Return

Investment Period

years

Results

Formula & Methodology

SIP Maturity = M × [(1+r)^n - 1] / r × (1+r)

Where:
M = Monthly investment amount
r = Monthly interest rate (Annual rate / 12 / 100)
n = Total number of installments (years × 12)

Wealth Gain = Maturity Value - Total Invested

About SIP Calculator

A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly in mutual funds. SIP is one of the best ways to build long-term wealth through disciplined investing, benefiting from rupee cost averaging and the power of compounding.

Why Choose SIP?

Disciplined investing habit
Benefits from market volatility through cost averaging
Start with as low as ₹500/month
Power of compounding over long periods

Complete Guide

What Is a SIP?

A Systematic Investment Plan (SIP) is a method of investing a fixed amount at regular intervals (monthly or quarterly) in mutual funds. Rather than trying to time the market with a lump sum investment, SIP lets you invest consistently and benefit from rupee cost averaging.

SIP Returns Formula

FV = P × [(1+r)^n − 1] / r × (1+r)

Where FV = Future Value, P = Monthly SIP amount, r = Monthly return rate (Annual rate ÷ 12 ÷ 100), n = Number of months

Power of SIP: Real Numbers

Monthly SIP of ₹10,000 at 12% annual return:

Duration	Total Invested	Estimated Returns	Corpus
5 years	₹6.00 lakh	₹2.12 lakh	₹8.12 lakh
10 years	₹12.00 lakh	₹11.23 lakh	₹23.23 lakh
15 years	₹18.00 lakh	₹32.24 lakh	₹50.24 lakh
20 years	₹24.00 lakh	₹75.91 lakh	₹99.91 lakh
25 years	₹30.00 lakh	₹1.62 crore	₹1.92 crore

Rupee Cost Averaging

One of SIP's greatest advantages: you buy more units when prices are low and fewer when prices are high, automatically. Over time, your average cost per unit is lower than the average market price — you benefit even in volatile markets.

Example: You invest ₹1,000/month in a fund:

Month 1: NAV ₹10 → buy 100 units
Month 2: NAV ₹8 → buy 125 units
Month 3: NAV ₹12 → buy 83.3 units
Average NAV = ₹10, but your average cost = ₹3,000/308.3 units = ₹9.73/unit

Step-Up SIP: Increase Investment as Income Grows

A Step-Up SIP increases your monthly investment by a fixed percentage each year. If you start at ₹10,000 and increase by 10% annually at 12% return for 20 years, your corpus grows to approximately ₹2.06 crore vs. ₹99.91 lakh for a flat ₹10,000/month SIP.

How to Choose the Right SIP Amount

Work backwards from your financial goal. Use our SIP Calculator to find the monthly investment needed for a target corpus.

Example: Need ₹1 crore in 15 years at 12% return:
Required monthly SIP ≈ ₹19,892/month

Frequently Asked Questions

SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly (usually monthly) in mutual funds. Instead of investing a lump sum, you invest small amounts periodically, benefiting from rupee cost averaging and compounding.

SIP uses the future value of an annuity formula: FV = P × [(1+r)^n − 1] / r × (1+r), where P = monthly investment, r = monthly return rate (annual rate/12/100), n = number of months.

Rupee cost averaging means you buy more units when prices are low and fewer when prices are high. Over time, this averages out your purchase cost, reducing the impact of market volatility compared to a lump sum investment.

Historically, diversified equity mutual funds in India have delivered 10%–15% CAGR over 10+ year periods. However, past performance doesn't guarantee future returns. Use 10%–12% as a conservative estimate for planning.

SIP invests a fixed amount periodically, reducing timing risk. Lump sum invests the entire amount at once, which can give higher returns in rising markets but more risk. SIP is better for regular investors; lump sum is good when markets are at a low.

Yes, most SIPs allow you to pause, modify the amount, or stop entirely without penalty. However, to maximize compounding benefits, it's recommended to continue SIP for the full planned duration.

XIRR (Extended Internal Rate of Return) measures the actual returns from a SIP, accounting for the timing of each investment. It gives a more accurate picture of returns than simple CAGR, especially for SIPs with irregular cash flows.

Use the reverse SIP calculation: determine your financial goal and timeline, then calculate the required monthly SIP. For example, to accumulate ₹50 lakh in 15 years at 12% returns, you need to invest approximately ₹8,500/month.

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