SIP Calculator
Calculate your SIP returns and plan your mutual fund investments with our free online SIP calculator. Get accurate maturity value projections for your monthly investments in India.
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Investment Breakdown
Total Investment
₹6,00,000
Expected Returns
₹5,61,695
Maturity Value
₹11,61,695
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What is SIP (Systematic Investment Plan)?
A Systematic Investment Plan (SIP) is a disciplined approach to investing in mutual funds where you invest a fixed amount regularly, typically monthly. SIP allows investors in India to participate in the equity markets without needing a large lump sum amount.
When you start a SIP, you commit to investing a predetermined amount at regular intervals. This amount is automatically debited from your bank account and invested in your chosen mutual fund scheme.
How SIP Returns are Calculated
The SIP calculator uses a specific formula to calculate the future value of your systematic investments:
M = P × ((1 + r)^n – 1) / r) × (1 + r)
- M = Maturity Amount (Future Value)
- P = Monthly Investment Amount
- r = Monthly Rate of Return (Annual Rate / 12 / 100)
- n = Total Number of Monthly Payments
Example SIP Calculation
Suppose you invest ₹10,000 per month for 15 years with an expected annual return of 12%.
- Monthly Investment (P): ₹10,000
- Investment Duration: 15 years (180 months)
- Expected Annual Return: 12%
- Total Investment: ₹10,000 × 180 = ₹18,00,000
- Maturity Value: ₹50,45,760 (approximately)
- Total Returns: ₹32,45,760
Benefits of SIP Investment
- Disciplined Investing: SIP automates your investment, ensuring you save consistently.
- Rupee Cost Averaging: By investing fixed amounts regularly, you buy more units when prices are low.
- Power of Compounding: Your returns generate additional returns over time.
- Flexibility: Start with as little as ₹500 per month.
- No Need to Time the Market: SIP eliminates the stress of predicting market movements.
SIP vs Lump Sum Investment
| Factor | SIP | Lump Sum |
|---|---|---|
| Initial Investment | Small amounts monthly | Large one-time amount |
| Market Timing | Not required | Important for best results |
| Risk Management | Rupee cost averaging reduces risk | Higher risk in volatile markets |
| Best For | Salaried individuals | Those with surplus funds |
Frequently Asked Questions
Disclaimer
This calculator is provided for informational purposes only. The results are estimates and should not be considered as financial advice. Actual values may vary based on various factors. Please consult a certified financial advisor before making any financial decisions.
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