SIP Calculator
Estimate the potential growth of your mutual fund investments with our SIP Calculator.
Future Value
₹ 0
What is a SIP Calculator?
A SIP (Systematic Investment Plan) Calculator is a powerful tool that helps investors estimate the future value of their mutual fund investments. SIP allows you to invest a small, fixed amount regularly (usually monthly) in mutual funds. This calculator projects the wealth you can create over time based on your monthly investment, expected rate of return, and time period.
How It Works
The SIP calculator uses the future value of annuity formula. It assumes that you invest a fixed amount at regular intervals and that the returns are compounded. While mutual fund returns are market-linked and not guaranteed, this tool helps in setting realistic financial goals.
Example Calculation
Anjali invests ₹10,000 per month in an equity mutual fund for 10 years, expecting a 12% annual return.
- 1.Monthly Investment (P) = ₹10,000
- 2.Expected Return = 12% p.a.
- 3.Monthly Rate (i) = 12% / 12 / 100 = 0.01
- 4.Tenure (n) = 10 years * 12 = 120 months
- 5.Total Amount Invested = ₹12,00,000
- 6.Estimated Future Value ≈ ₹23,23,391
- 7.Wealth Gained ≈ ₹11,23,391
Why This Tool is Useful
- ✓Visualizes the power of compounding over the long term.
- ✓Helps you decide how much to invest to reach a specific financial goal (e.g., ₹1 Crore).
- ✓Shows the massive difference between starting early vs. starting late.
- ✓Easy to use and provides instant results for complex calculations.
- ✓Useful for planning retirement, child's education, or buying a home.
Tips & Comparison
- •Rupee Cost Averaging: SIPs help you buy more units when markets are low and fewer when high, averaging out cost.
- •Step-up SIP: Increasing your SIP amount by just 10% every year can double your corpus significantly.
- •Long-term Horizon: Equity SIPs generally perform best over a period of 7+ years.
- •Risk vs Reward: Higher expected returns usually come with higher risk. Choose funds accordingly.