SIP Calculator

About the SIP Calculator

A Systematic Investment Plan (SIP) is a way of investing a fixed amount in a mutual fund at regular intervals, usually every month. Instead of timing the market, you invest steadily, buying more units when prices are low and fewer when they are high. This rupee-cost averaging smooths out volatility, while the real magic comes from compounding: your returns earn further returns over time, turning modest monthly contributions into a substantial corpus over the years.

This calculator uses the future value of an annuity formula, FV = P x (((1 + i)^n - 1) / i) x (1 + i), where P is the monthly investment, i is the monthly rate of return (annual expected return divided by 12) and n is the number of instalments. The result shows your maturity value, the total amount you invested and the wealth gained. Because compounding accelerates over time, starting early and staying invested longer has an outsized effect.

SIP returns are not guaranteed, since mutual funds invest in market-linked assets, so the expected return you enter is only an assumption. Equity funds have historically delivered higher long-term returns than fixed deposits but with more short-term ups and downs. Use this tool to set realistic goals, then stay disciplined through market cycles. A step-up SIP, where you raise your contribution each year, can grow your corpus even faster.

How to use it

• Start early, as compounding rewards a longer investment horizon more than a larger amount.
• Increase your SIP amount each year with a step-up to grow your corpus significantly faster.
• Stay invested through market dips, since rupee-cost averaging works best over full cycles.
• Returns are market-linked and not guaranteed, so treat the expected return as an estimate.