SIP Calculator
Calculate returns on your Systematic Investment Plan (SIP) with our free online calculator. See how regular monthly investments in mutual funds can help you build substantial wealth over time.
Investment vs Returns
Wealth Growth Over Time
Year-by-Year Breakdown
| Year | Monthly SIP | Invested This Year | Total Invested | Returns | Value |
|---|
Key Features
How to Use This Calculator
Benefits
Understanding SIP Investment
A Systematic Investment Plan (SIP) is a disciplined investment approach where you invest a fixed amount regularly in mutual funds. Our SIP Calculator helps you understand how these regular investments compound over time to create substantial wealth.
The SIP return calculation uses the future value of annuity formula, considering the monthly investment amount, expected rate of return, and investment duration. The power of SIP lies in rupee cost averaging and the compounding effect over long periods.
Rupee cost averaging means you buy more units when prices are low and fewer when prices are high, automatically averaging out your purchase cost. This reduces the impact of market volatility on your investments and removes the need to time the market.
Historical data shows that equity mutual funds have delivered average annual returns of 12-15% over long periods. However, returns can vary significantly in the short term. SIP is most effective for long-term goals of 5 years or more.
Our calculator also supports step-up SIP, where you increase your investment amount annually. This is particularly useful as your income grows over time, helping you maximize wealth creation while maintaining affordability.