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SIP Calculator

Estimate the future value of your Systematic Investment Plan (SIP) with monthly compounding.

Currency:
๐Ÿ‡บ๐Ÿ‡ธ USD โ€“ US Dollar
Monthly Investment ($) $5,000
Expected Annual Return (%) 12%
Time Period (Years) 10 yrs

Total Corpus

$0

$0
Amount Invested
$0
Wealth Gained

A SIP (Systematic Investment Plan) lets you invest a fixed amount every month into a mutual fund. Small consistent contributions compound into significant wealth over time. Enter your monthly amount, expected annual return, and investment period to see what your SIP could grow to.

Frequently Asked Questions

SIP stands for Systematic Investment Plan. It is a method of investing a fixed amount into a mutual fund at regular intervals, usually monthly. It is popular in India as a disciplined way to build wealth without needing a large lump sum to start.

The calculator uses the future value of an annuity formula with monthly compounding. The annual rate is divided by 12 to get the monthly rate, and each monthly contribution earns compound interest for the remaining months of the investment period.

Indian equity mutual funds have historically returned around 12-15% annually over long periods. Debt funds return closer to 6-8%. A conservative estimate for a balanced portfolio might be 10-12%. No return is guaranteed. Use different rates to model best and worst case scenarios.

The chart splits your final corpus into two parts: the total amount you put in (invested amount) and the gains generated by compounding (returns). The gap between these two figures is what compounding does for you. The longer the period, the bigger that gap becomes.

This calculator is specifically for SIP. For lump sum calculations, use a compound interest calculator instead. A lump sum uses a different formula because the entire amount is invested on day one, rather than spread over monthly contributions.

When you invest a fixed amount monthly, you automatically buy more units when prices are low and fewer when prices are high. Over time, this averages out your purchase cost. This benefit of SIP investing is called rupee cost averaging and it reduces the impact of market timing on your overall returns.