SIP Calculator
Plan monthly, yearly, or one-time investments and see estimated wealth at maturity.
Total Wealth
₹31.6 L
₹31,56,351
What is a SIP?
A Systematic Investment Plan (SIP) is a way to invest in mutual funds (and similar products) by committing a fixed amount on a regular schedule—usually every month. The money is invested automatically on the chosen dates, so you do not have to time the market or place each order yourself.
Why is a SIP useful?
- Discipline: Investing regularly turns saving into a habit, even when markets move up or down.
- Rupee cost averaging: When prices are high you buy fewer units; when they are lower you buy more—over time this can smooth out entry prices.
- Small steps, big goals: You can start with amounts that fit your budget and increase later.
- Compounding: Returns can earn further returns over long horizons, which is especially powerful when you stay invested for years.
Example: benefit of staying regular
Suppose you invest ₹5,000 per month for 15 years. You would contribute ₹9 lakh in total (180 instalments). For illustration only—if that money grew at about 12% p.a. compounded monthly, the estimated corpus would be roughly ₹25.2 lakh. That gap between what you put in and what you might build illustrates how consistency plus compounding can work together. Actual results depend on the fund, fees, taxes, and market performance; past returns do not guarantee future returns.
How it is calculated
For monthly SIP, we use the standard future-value formula for regular investments made at the beginning of each period (annuity due, compounded monthly). If the expected annual return is zero, maturity is simply the sum of all installments.
- M
- Estimated amount at maturity (future value).
- P
- Amount invested each month (monthly installment).
- n
- Number of monthly SIP instalments. In this calculator you set it directly in months for monthly SIP, or as years × 12 when you use the yearly tenure field elsewhere.
- i
- Per-period (monthly) interest rate: annual expected return ÷ 12 ÷ 100.
Yearly SIP uses the same annuity-due structure with one payment at the beginning of each year and annual compounding. Lumpsum uses compound growth: final value = one-time principal × (1 + annual rate)years.