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SIP Calculator - Systematic Investment Plan Returns

Calculate your SIP returns and plan your mutual fund investments. See how your monthly investments can grow with the power of compounding.

Calculate SIP Returns
₹
₹500₹1,00,000
%
1%30%
Years
1 Year40 Years
SIP Returns Summary

Invested Amount

₹12.00 L

Estimated Returns

₹11.23 L

Total Value

₹23.23 L

Investment Breakdown

Invested: ₹12.00 L
Returns: ₹11.23 L

Total Investment Period

10 Years (120 Months)

Wealth Multiplier

1.94x

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Understanding SIP Investments

A Systematic Investment Plan (SIP) is one of the most effective ways to build wealth over time. By investing a fixed amount regularly in mutual funds, you benefit from rupee cost averaging and the power of compounding.

SIP Calculator Formula

The SIP maturity value is calculated using the future value formula:

M = P × (((1 + r)^n - 1) / r) × (1 + r)

Where:

  • M = Maturity value
  • P = Monthly SIP amount
  • r = Monthly rate of return (Annual return / 12 / 100)
  • n = Number of months

Benefits of SIP Investing

  • Rupee Cost Averaging: You buy more units when prices are low and fewer when prices are high
  • Disciplined Investing: Regular investments help build a savings habit
  • Power of Compounding: Your returns earn returns over time
  • Flexibility: Start with as low as ₹500 per month
  • No Market Timing: No need to worry about when to invest

Tips for Successful SIP Investing

Start early to maximize compounding benefits, stay invested for the long term (at least 5-7 years for equity funds), increase your SIP amount annually with your income growth, and don't stop SIPs during market downturns as you get more units at lower prices.

Frequently Asked Questions

What is SIP?
SIP stands for Systematic Investment Plan. It is an investment method where you invest a fixed amount regularly (usually monthly) in mutual funds. SIP helps in building wealth over time through disciplined investing and benefits from rupee cost averaging.
How does SIP calculator work?
The SIP calculator uses the compound interest formula to estimate your returns. It takes your monthly investment amount, expected rate of return, and investment duration to calculate the total invested amount, estimated returns, and maturity value.
What is the power of compounding in SIP?
Compounding means your returns generate additional returns. In SIP, the interest earned is reinvested, which then earns more interest. Over long periods, this compounding effect can significantly multiply your wealth, making early and consistent investing highly beneficial.
What returns can I expect from SIP?
SIP returns depend on market conditions and the type of mutual fund. Historically, equity funds have delivered 12-15% average annual returns over long periods, while debt funds offer 6-8%. However, past performance doesn't guarantee future results.
Can I modify my SIP amount?
Yes, most mutual funds allow you to increase or decrease your SIP amount, pause your SIP, or even stop it. Some funds also offer step-up SIP where your investment automatically increases by a fixed percentage each year.
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