investment calculator
SIP Calculator
See how recurring monthly investments can compound into long-term wealth.
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Forecast your wealth growth through systematic monthly investments
Enter your investment details to see how your money compounds over time.
Growth
Exponential
Saving
Disciplined
Compounding
Monthly
Mastering Wealth with SIP
A Systematic Investment Plan (SIP) is a smart and hassle-free mode for investing in mutual funds. It allows you to invest a fixed amount of money at regular intervals, such as monthly, rather than making a one-time lump sum payment. Whether you are using a monthly SIP calculator or planning a step-up SIP, consistency is key.
SIPs are popular because they instill financial discipline and leverage the power of compounding and rupee cost averaging. Even with small amounts, regular SIPs are the most effective way for wealth creation over the long term.
How SIP Calculation Works
The calculation uses the formula for the future value of an annuity certain:
- FV: Future Value of the investment
- P: Monthly Investment Amount
- r: Monthly Rate of Return (Annual Rate / 12 / 100)
- n: Number of Installments (Months)
Top Benefits of SIP
Power of Compounding
When you invest regularly, your returns themselves start earning returns. Over 10-20 years, this exponential growth becomes the primary driver of wealth.
Rupee Cost Averaging
By investing a fixed amount every month, you buy more units when prices are low and fewer units when prices are high, lowering your average cost per unit.
Frequently Asked Questions
Is SIP better than Lumpsum investment?▼
For most people, yes. While lumpsum can be better if you time the market perfectly, SIPs remove the need for market timing risk. SIPs are generally more sustainable for regular income earners and provide the benefit of rupee cost averaging during market volatility.
Can I stop my SIP anytime?▼
Yes, most SIPs in mutual funds are completely flexible. You can pause, stop, or increase the SIP amount (Top-up SIP) depending on your financial situation. There is usually no penalty for stopping a mutual fund SIP.
What is a realistic return rate to expect?▼
Historically, Indian equity mutual funds have delivered returns in the range of 10% to 15% over long periods (10+ years). However, returns are not guaranteed and depend on market performance. For conservative planning, many investors use 12% as a benchmark.