SIP Calculator
Calculate SIP returns instantly. Estimate future value, total investment & wealth gain using Indian mutual fund SIP formula.
A SIP Calculator helps investors estimate the future value of their monthly mutual fund investments. SIP (Systematic Investment Plan) is one of the most popular investment methods in India for long-term wealth creation.
By investing a fixed amount every month, investors benefit from rupee cost averaging and the power of compounding. This SIP Calculator estimates total investment, future value, and wealth gain based on expected return rate.
What is SIP?
SIP stands for Systematic Investment Plan. It allows investors to invest a fixed amount monthly into mutual funds instead of investing a lump sum.
How SIP Returns Are Calculated
The future value of SIP is calculated using compound interest formula applied monthly.
FV = P × [((1 + r)n − 1) ÷ r] × (1 + r)
- P = Monthly Investment
- r = Monthly return rate
- n = Total months
Example
If you invest ₹5,000 monthly for 20 years at 12% annual return:
- Total Investment = ₹12,00,000
- Future Value ≈ ₹49+ lakh
- Wealth Gain ≈ ₹37+ lakh
This demonstrates the power of long-term compounding.
Benefits of SIP
- Disciplined investing
- Power of compounding
- Rupee cost averaging
- Affordable starting amount
- Long-term wealth creation
Who Should Invest via SIP?
- Young professionals
- Long-term investors
- Retirement planners
- Parents planning child education
Use this SIP Calculator to plan your long-term financial goals effectively.
Frequently Asked Questions
How is SIP return calculated?
SIP return is calculated using monthly compound interest formula based on investment amount, rate of return and duration.
What is a good SIP return rate?
Historically, equity mutual funds in India have delivered 10–15% annual returns, but returns are market dependent.
Is SIP better than lump sum?
SIP reduces market timing risk and promotes disciplined investing compared to lump sum investment.
Can I increase SIP amount later?
Yes, investors can increase SIP amount anytime or choose step-up SIP options.
Is SIP safe?
SIP investments are subject to market risks. Returns depend on fund performance.