SIP Calculator
SIP Calculator
Calculate your Systematic Investment Plan returns in INR
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SIP Calculator
Investing can often feel complicated, but tools like SIP calculators make the journey easier and more predictable. Many new investors confuse Systematic Investment Plans (SIPs) with mutual funds, assuming both are the same. In reality, SIP is simply a disciplined method of investing in mutual funds. While one can invest a lump sum in mutual funds, SIP allows you to invest a fixed amount at regular intervals—weekly, monthly, or quarterly.
A SIP calculator helps investors estimate the returns on their investments and understand how small, consistent contributions can grow into a significant corpus over time. If you are planning to invest, this guide will explain everything about SIPs, their benefits, and how an SIP calculator works.
What is SIP Calculator?
In today’s world of financial planning, Systematic Investment Plans (SIPs) have become one of the most preferred ways of investing in mutual funds. Millennials and young professionals especially favor SIPs because of their discipline, flexibility, and long-term wealth creation potential. To make the process even easier, investors use a SIP calculator to estimate how much their money can grow over time.
How Do SIP Calculators Work?
Systematic Investment Plans (SIPs) have become one of the most preferred ways for individuals to invest in mutual funds. They allow you to invest a fixed amount regularly—monthly, quarterly, or weekly—without worrying about market fluctuations. But before starting a SIP, most investors want to know how much wealth they can generate over time. That’s where a SIP calculator comes into play.
In this article, we’ll explain how SIP calculators work, their formula, and why investors should use them.
How Do SIP Calculators Work? - Formula
SIP calculators work on the principle of compound interest. When you invest regularly, your contributions earn returns, and those returns further generate additional returns over time.
The formula used by SIP calculators is:
M = P × ({[1 + i]^n – 1} / i) × (1 + i) Where:-
• M = Maturity amount
• P = Amount you invest at regular intervals (monthly SIP)
• n = Number of payments (months)
• i = Periodic rate of return (monthly return)
Step-Up SIP Calculator
Investing through a Systematic Investment Plan (SIP) has become one of the most effective ways to build long-term wealth. While a regular SIP involves investing a fixed amount every month, many investors wish to increase their SIP contributions gradually as their income grows. This is where the Step-Up SIP Calculator comes into play.
It helps you estimate the future value of your investments when you increase your monthly SIP amount at regular intervals. Let’s understand how it works, its benefits, and why you should use it.
Example: Step-Up SIP Calculation
Let’s assume:
• Initial SIP: ₹10,000 per month
• Step-Up: 10% every year
• Tenure: 10 years
• Expected return: 12% annually
Result:
• Total Investment = ₹18,59,000 (approx.)
• Maturity Amount = ₹23,50,000+ (approx.)
• Wealth Gain = ₹12,00,000+
👉 Compared to a normal SIP of ₹10,000/month for 10 years (which grows to around ₹23,00,000), the step-up strategy helps you build significantly higher wealth.
Mutual Fund SIP Calculator
Investing in mutual funds has become one of the most popular choices for individuals who want to grow wealth steadily. While lump sum investments are an option, Systematic Investment Plans (SIPs) are gaining more popularity, especially among salaried professionals and millennials. A Mutual Fund SIP Calculator helps you estimate how much your investment can grow over time through disciplined monthly contributions.
What is a Mutual Fund SIP Calculator?
A Mutual Fund SIP Calculator is an online financial tool that calculates the maturity value and wealth gain from your SIP investments in mutual funds. By entering details such as:
• Monthly investment (SIP amount)
• Investment duration (years)
• Expected annual return rate
…the calculator instantly shows your total investment, estimated maturity amount, and returns earned.
It simplifies financial planning and helps investors set realistic goals for the future.
SIP Calculator with Inflation
Investing in mutual funds through a Systematic Investment Plan (SIP) is one of the most disciplined ways to grow wealth over time. However, while SIP calculators give you an estimate of your future maturity value, they often ignore a key factor: inflation.
Inflation reduces the purchasing power of money. For example, an item costing ₹1,000 today may cost ₹2,000 or more in 10 years. That means your future corpus will buy less than it does today. This is where a SIP calculator with inflation adjustment becomes crucial—it shows you the real value of your investments after considering inflation.
FAQs
How much can I invest in a SIP?
The minimum SIP investment in India usually starts from ₹500 per month, depending on the mutual fund scheme and the AMC (Asset Management Company). Some platforms also allow SIPs as low as ₹100.
What is the maximum tenure of a SIP?
There is no fixed maximum tenure for a SIP. You can continue investing in a mutual fund through SIP for as long as you wish, even for 10, 15, or 20+ years, depending on your financial goals.
What is the full form of SIP?
The full form of SIP is Systematic Investment Plan.
What are the benefits of SIP?
The key benefits of SIP (Systematic Investment Plan) include:
• Instils a regular investment habit – Helps you stay disciplined in saving and investing.
• No need to time the market – You invest at regular intervals, reducing the risk of market volatility.
• Start early with small amounts – SIPs can begin with as little as ₹500 per month, making it easy for beginners.
• Rupee cost averaging – Your investments average out over time, balancing market ups and downs.
• Simple & convenient – Automated through ECS (Electronic Clearing Service), making investing hassle-free.