SIP Calculator

Calculate Systematic Investment Plan returns instantly. See how your monthly investments grow over time with the power of compounding.

₹
%
yr
%

Increase your monthly SIP by this % each year

Invested Amount
₹6,00,000
Estimated Returns
₹5,61,695
Total Value
₹11,61,695
Invested (52%)Returns (48%)

What is a SIP (Systematic Investment Plan)?

A Systematic Investment Plan (SIP) is an investment strategy offered by mutual funds in India, allowing investors to invest a fixed amount at regular intervals — typically monthly. Instead of making a lump-sum investment, SIP lets you invest small amounts periodically, making it accessible for salaried individuals and disciplined investors.

SIPs leverage rupee cost averaging — when markets are down, your fixed amount buys more units; when markets are up, it buys fewer. Over time, this averages out the cost per unit, reducing the impact of market volatility on your investment.

SIPs are widely used in equity mutual funds, ELSS (tax-saving funds), and hybrid funds. They are ideal for long-term wealth creation goals like retirement planning, children's education, or building an emergency fund.

SIP Calculation Formula

The SIP calculator uses the Future Value of Annuity formula, which accounts for compounding on each monthly instalment:

FV = P × [((1 + r)n − 1) / r] × (1 + r)

Where:

  • FV = Future Value (total maturity amount)
  • P = Monthly investment amount
  • r = Monthly rate of return (annual rate ÷ 12 ÷ 100)
  • n = Total number of instalments (years × 12)

Step-by-Step SIP Calculation Example

Scenario: You invest ₹5,000 per month for 10 years at an expected annual return of 12%.

Step 1: Convert Annual Rate to Monthly

r = 12% ÷ 12 ÷ 100 = 0.01

Step 2: Calculate Total Months

n = 10 × 12 = 120 months

Step 3: Apply the Formula

FV = 5000 × [((1.01)120 − 1) / 0.01] × 1.01
FV ≈ ₹11,61,695

Result

  • Total Invested: ₹6,00,000 (₹5,000 × 120)
  • Estimated Returns: ₹5,61,695
  • Total Value: ₹11,61,695

People Also Ask

What is a SIP calculator?
A SIP calculator estimates the future value of regular monthly investments in mutual funds using the compound interest (future value of annuity) formula. It helps you plan your investment by showing how much your money can grow over time at a given expected rate of return.
How is SIP return calculated?
SIP returns are calculated using the formula FV = P × [((1 + r)ⁿ − 1) / r] × (1 + r), where P is the monthly investment, r is the monthly rate of return (annual rate ÷ 12 ÷ 100), and n is the total number of months. This accounts for compounding on each instalment.
Is SIP better than a lump sum investment?
SIP reduces market-timing risk through rupee cost averaging — you buy more units when prices are low and fewer when prices are high. Lump-sum investments may outperform in a consistently rising market, but SIP is generally considered safer for most retail investors.