SIP Calculator

About the SIP Calculator

A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly in mutual funds, building wealth through the power of compounding and rupee-cost averaging. Our SIP calculator shows your expected maturity amount, total wealth gained, and the dramatic impact of extending your investment horizon. SIPs are one of the most disciplined and effective wealth-building strategies for long-term investors.

How It Works

SIP returns are calculated using the future value of an annuity formula: FV = PMT × [(1 + r)^n - 1] / r × (1 + r), where PMT is monthly investment, r is monthly return rate (annual rate ÷ 12), and n is total months. For a ₹5,000/month SIP at 12% annual returns over 20 years: Total invested = ₹12,00,000 and maturity value ≈ ₹49,95,000 — wealth created through compounding = ₹37,95,000.

Tips & Best Practices

• ✓Starting a SIP 5 years earlier can double your corpus due to compounding.
• ✓Equity mutual funds in India have historically returned 12–15% over 10+ year periods.
• ✓ELSS (Equity Linked Savings Scheme) SIPs offer Section 80C tax deductions up to ₹1.5 lakh.
• ✓Step-up SIPs (increasing amount by 10% annually) dramatically accelerate wealth creation.
• ✓SIPs in volatile markets benefit from rupee-cost averaging — more units purchased when prices fall.

Who Uses This Calculator

Young professionals beginning their investment journey, parents planning children's education and marriage funds, and anyone building a retirement corpus through disciplined monthly investing use SIP calculators to plan and stay motivated.