SIP Calculator — Systematic Investment Plan Returns
Calculate how much wealth you can build through monthly SIP investments. See invested amount versus estimated returns over time.
Total Wealth
₹11,61,695
Invested Amount
₹6,00,000
Est. Returns
₹5,61,695
How to Use the SIP Calculator
- Enter your planned monthly SIP investment amount.
- Set the expected annual return rate based on your fund type (conservative: 10%, moderate: 12%, aggressive: 15%).
- Choose your investment period in years.
- The calculator shows your total invested amount, estimated returns, and final wealth.
SIP Return Formula
- FV = Future Value (total wealth)
- P = Monthly SIP amount
- r = Monthly return rate (annual rate / 12 / 100)
- n = Total months invested
Why SIP is a Powerful Investment Strategy
SIP (Systematic Investment Plan) allows investors to participate in the stock market without timing concerns. By investing a fixed amount every month, you buy more units when prices are low and fewer when prices are high, which averages out the cost over time.
The power of SIP lies in compounding. Even small monthly investments can grow into substantial wealth over 15-20 years. For example, investing Rs. 5,000 per month at 12% annual returns for 20 years can grow into approximately Rs. 50 lakhs, from a total investment of just Rs. 12 lakhs.
India's mutual fund industry has grown dramatically, with SEBI-registered AMCs offering SIPs starting at just Rs. 100 per month. Equity SIPs are best suited for long-term goals (5+ years), while debt SIPs work for shorter timeframes with lower but more stable returns.
Frequently Asked Questions
What is SIP and how does it work?
SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds. It uses rupee cost averaging to reduce market timing risk and benefits from compound growth over time.
What is a good SIP return rate to expect?
Historically, equity mutual funds in India have delivered 12-15% annual returns over long periods. For conservative planning, use 10-12% in our calculator.
How is SIP different from a lump sum investment?
SIP invests a fixed amount monthly, reducing risk through averaging. Lump sum invests everything at once, which can be better in falling markets but riskier due to timing dependence.