SIP Calculator
Calculate the future value of your SIP investments.
Enter values and click Calculate to see results
What is SIP Calculator?
A Systematic Investment Plan (SIP) is a disciplined way to invest a fixed amount in mutual funds every month. SIP leverages the power of compounding and rupee cost averaging — you buy more units when markets are low and fewer when markets are high, averaging out your purchase cost over time. Starting early with even a small SIP can generate significant wealth over the long term due to the compounding effect.
Formula
SIP Future Value Formula
FV = P × [(1 + r)ⁿ − 1] / r × (1 + r)Where:
FVFuture Value — maturity amount (₹)PMonthly SIP amount (₹)rMonthly return rate = Annual Rate / 12 / 100nTotal months of investmentWorked Example
Monthly SIP of ₹5,000 for 15 years at 12% expected annual return:
₹5,00012% (r = 12/12/100 = 0.01/month)15 × 12 = 180 months₹25,22,880 (approx.)₹5,000 × 180 = ₹9,00,000₹25,22,880 − ₹9,00,000 = ₹16,22,880✅ A ₹5,000/month SIP for 15 years at 12% grows to ₹25.2 lakhs — nearly 2.8x your investment of ₹9 lakhs.
Tips & Important Notes
- 💡Start early — a 25-year-old investing ₹5,000/month earns 3x more than a 35-year-old by retirement.
- 💡Increase your SIP amount by 10-15% every year (Step-up SIP) to offset inflation.
- 💡Historical 15-year CAGR of Nifty 50 index funds is around 12-13%.
- 💡SIP in ELSS funds (tax-saving mutual funds) qualifies for ₹1.5L deduction under Section 80C.
- 💡Do not stop SIP during market downturns — market lows are when you buy more units cheaply.
Frequently Asked Questions (FAQs)
SIP is generally better for salaried individuals since it spreads investment over time and averages out market volatility (rupee cost averaging). Lump sum investments are better when markets are at a significant low. For most retail investors, SIP is the preferred approach for long-term wealth creation.