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SIP Calculator

Visualize the power of compounding by calculating wealth from your Systematic Investment Plans (SIP).

Investment Plan

₹
₹500₹1L
%
1%30%
Yr
1 Yr40 Yr

Invested Amount

₹ 6,00,000

Est. Returns

₹ 5,61,695

Total Value

₹ 11,61,695

₹ 11,61,695

Expected Final Wealth

What is a SIP Calculator?

A Systematic Investment Plan (SIP) calculator helps you calculate the expected returns on your mutual fund investments made through SIPs. The calculator uses the compound interest formula to show you how small but regular monthly investments can grow into a massive corpus over a long period.

The Magic of Compounding

Compounding is what happens when the returns on your investment start earning returns themselves. By staying invested for longer timeframes (10, 15, or 20+ years), compounding drastically accelerates wealth creation. The key to SIP is consistency and time in the market.

How the Formula Works:

For SIP, we use the future value of an annuity formula:

FV = P × [ (1 + i)^n - 1 ] × (1 + i) / i
  • FV = Future Value
  • P = Monthly investment amount
  • i = Monthly expected return rate (Annual Rate / 12 / 100)
  • n = Total number of installments (Years × 12)

Frequently Asked Questions

SIP (Systematic Investment Plan) lets you invest a fixed amount in mutual funds at regular intervals (monthly/quarterly). It uses rupee cost averaging — you buy more units when prices are low and fewer when prices are high, reducing the impact of market volatility over time.
Returns depend on your monthly investment and expected rate. For example, a ₹10,000/month SIP at 12% annual return for 10 years grows to approximately ₹23.2 lakh (invested: ₹12 lakh, wealth gain: ₹11.2 lakh). Use our calculator with your values for an exact estimate.
SIP is better for reducing risk through rupee cost averaging, especially in volatile markets. Lumpsum can give higher returns if invested at market lows. For most salaried individuals, SIP is preferred as it aligns with monthly income and builds discipline.
Compounding means you earn returns not just on your investment but also on previously earned returns. In SIP, the longer you stay invested, the more powerful compounding becomes. Starting early, even with small amounts, can create significantly more wealth than starting late with larger amounts.
No, SIP returns in equity mutual funds are not guaranteed as they are market-linked. However, historically, equity SIPs over 7+ years have delivered 10-15% CAGR in India. Debt fund SIPs offer more stable but lower returns (6-8%). Our calculator uses your expected rate for estimation.