SIP Calculator
Monthly SIP returns & corpus
Investment Details
Invested
₹6.00 L
Est. Returns
₹5.62 L
Total Value
₹11.62 L
Investment Growth
Summary
SIP Calculator – Harness the Power of Compounding
A Systematic Investment Plan (SIP) is one of the most disciplined and effective ways to build long-term wealth in mutual funds. By investing a fixed amount every month — as little as ₹500 — you benefit from rupee cost averaging and the exponential power of compounding. Our free SIP calculator helps you project the future value of your monthly investments based on an expected annual return rate, so you can set realistic financial goals and stay committed to your investment journey.
How the SIP Calculator Works
The SIP calculator uses the Future Value of Annuity Due formula: FV = P × ((1 + r)ⁿ – 1) / r × (1 + r), where P is the monthly SIP amount, r is the monthly return rate (annual rate ÷ 12 ÷ 100), and n is the total number of months. Enter your monthly investment amount, expected annual return rate (historically 12–15% for diversified equity funds), and investment tenure. The calculator shows your total invested amount, estimated returns, final corpus, and a year-wise growth chart.
Benefits of SIP Investing
- ✓Start Small: Begin with as little as ₹500 per month and increase gradually as your income grows.
- ✓Rupee Cost Averaging: Regular monthly investments buy more units when markets are low and fewer when high, averaging your cost over time.
- ✓Power of Compounding: Returns generated in early years earn returns themselves — creating exponential growth over long periods.
- ✓Financial Discipline: Automating monthly investments removes emotional decision-making and keeps you consistently invested.
- ✓Goal-Based Planning: Use the calculator to reverse-engineer the SIP amount needed to reach a specific financial goal.
Key Features
- ✓Flexible Inputs: Adjust monthly SIP from ₹500 to ₹2 lakh, returns from 1% to 30%, and tenure from 1 to 40 years.
- ✓Year-wise Growth Chart: Stacked bar chart shows how invested amount and returns grow each year throughout the investment period.
- ✓Absolute Return Display: See the total return percentage (absolute return) on your invested capital at a glance.
- ✓Summary Table: Clear tabular summary of monthly SIP, total invested, estimated returns, and final corpus.
- ✓Real-time Updates: Every change to inputs instantly recalculates all figures and updates charts without page reload.
Frequently Asked Questions about SIP
What is a SIP and how does it work?
A SIP (Systematic Investment Plan) is a method of investing a fixed amount in a mutual fund scheme at regular intervals — typically monthly. Each SIP installment buys units at the prevailing Net Asset Value (NAV). Over time, you accumulate units at different NAVs, averaging your cost and benefiting from compounding returns.
What is a realistic expected return for SIP in India?
Diversified equity mutual funds in India have historically delivered 12–15% CAGR over long periods (10+ years). Mid and small cap funds have delivered higher returns (15–18%) with more volatility. Debt funds typically return 6–8%. The calculator lets you model different return scenarios to stress-test your financial plan.
Are SIP returns guaranteed?
No, SIP returns in equity mutual funds are market-linked and not guaranteed. However, investing through SIP over long periods (7–10+ years) significantly reduces the risk of negative returns due to rupee cost averaging and the long-term upward trend of markets. Debt SIPs carry lower risk but also lower return potential.
Can I stop or pause my SIP anytime?
Yes. Most mutual funds allow you to pause, modify, or stop your SIP anytime without penalty. You can also increase your SIP amount (step-up SIP) annually to align with salary increments. The units already accumulated remain invested and continue to grow.
How is SIP different from a lumpsum investment?
A SIP invests small amounts regularly over time, reducing timing risk and averaging your purchase cost. A lumpsum investment puts all money in at once — ideal when you believe the market is undervalued. For most investors without market-timing expertise, SIP is the recommended approach for long-term wealth creation.