Systematic Investment Plan (SIP) Calculator
Projected Returns
Year | Yearly Investment | Cumulative Investment | Year End Value | Inflation Adj. Value |
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Created by :- Narendra
SIP Calculator – Systematic Investment Plan Return Calculator
A SIP Calculator, or Systematic Investment Plan Calculator, is an online financial tool that helps you estimate the future value of your mutual fund investments made through SIP. It simplifies planning by showing you the expected returns based on your monthly investment amount, investment duration, and anticipated annual return rate.
While SIPs are commonly linked with mutual funds, it’s important to understand that SIP is not a type of investment, but a method of investing in mutual funds—the other common method being a lump-sum investment.
What Is a SIP?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount at regular intervals—typically monthly, but also available weekly or quarterly. SIPs are widely regarded as one of the most efficient ways to build wealth through disciplined and consistent investing, especially for long-term financial goals.
What Is a SIP Calculator?
A SIP calculator is a mutual fund return calculator designed to help you estimate the maturity amount of your investment. It provides a near-accurate picture of your potential returns, based on the details you enter. However, note that actual returns can vary due to market fluctuations, fund performance, exit loads, and expense ratios.
It's especially useful for:
- First-time investors planning their monthly investment.
- Long-term planners looking to forecast their SIP returns.
- Individuals comparing SIP vs. lump sum investments.
Benefits of Using an Online SIP Calculator
- Helps determine how much you need to invest regularly to meet your goal.
- Shows total amount invested vs. estimated returns.
- Saves time by eliminating manual calculations.
- Easy-to-use calendar interface fow making date selection effortless.
- Encourages disciplined investment habits.
- Assists in financial planning for goals like buying a house, children's education, or retirement.
How Does a SIP Calculator Work?
The SIP calculator uses the following mathematical formula to calculate returns:
M = P × ({[1 + i]^n – 1} / i) × (1 + i)
Where:
- M = Maturity amount
- P = SIP amount (monthly investment)
- n = Number of investment periods (months)
- i = Periodic interest rate (annual rate ÷ 12)
Example:
If you invest ₹1,000/month for 12 months at a 12% annual return:
Monthly interest rate = 12% / 12 = 1% = 0.01
M = 1000 × ({[1 + 0.01]^12 – 1} / 0.01) × (1 + 0.01)
M = ₹12,809 (approx.)
This is an estimate. Actual returns may vary based on the mutual fund's performance and market conditions.
How to Use Our SIP Calculator
Using our free SIP calculator is easy and intuitive:
- Enter your Monthly Investment amount.
- Set the Investment Period (in years).
- Enter the Expected Annual Return (in %).
- Enter the Inflation (in %) - optional
The calculator will instantly show:
- Total Invested Amount
- Estimated Wealth Gained
- Final Maturity Amount
You can adjust any of these values to compare multiple scenarios and better plan your financial future.
FAQ on SIP Calculator
There is no upper limit. The minimum investment usually starts at ₹500/month, depending on the mutual fund.
There’s no fixed limit. You can choose any tenure—3 year, 5 years, 10 years, or more—based on your financial goals..
Yes. Most mutual fund platforms allow you to:
- Increase or decrease the SIP amount
- Pause investments temporarily
- Renew the SIP after completion
No. SIPs are available for:
- Equity funds
- Debt funds
- Hybrid funds
- ELSS (tax-saving mutual funds)
No. A SIP is a method of investing in mutual funds. Mutual funds can be invested in either through SIPs or lump-sum investments.
Start Planning Your SIP Today:
Investing through SIPs is one of the most effective ways to build long-term wealth. Use our SIP Calculator to take the guesswork out of planning and stay focused on your financial goals.