SIP Calculator
Systematic Investment Plan (SIP) allows you to invest small amounts regularly. See how your wealth grows over time.
Small monthly savings of ₹5,000 can grow into ₹0 in 10 years!
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What is a SIP Calculator?
A SIP (Systematic Investment Plan) calculator is a powerful tool that helps you estimate the potential returns on your mutual fund investments. By investing a fixed amount regularly (monthly or quarterly), you can leverage the power of compounding to build significant wealth over time.
How does SIP Calculation work?
The SIP calculator uses the following formula to determine the future value of your investments:
- FV: Future Value (the amount you get at maturity)
- P: Principal amount (your monthly SIP)
- i: Monthly rate of interest (annual rate divided by 12)
- n: Number of payments (months)
Benefits of using a SIP Calculator
Using our SIP calculator for India provides several advantages for your financial planning:
- Clarity: Know exactly how much you need to invest to reach your financial goals.
- Comparison: Compare different return rates and time periods to see how they impact your final corpus.
- Motivation: Seeing the projected growth of your wealth encourages disciplined saving.
- Inflation Adjustment: Understand the real value of your future wealth in today's terms.
Frequently Asked Questions (FAQ)
Is SIP better than Lumpsum?
SIP is generally considered better for retail investors as it provides the benefit of Rupee Cost Averaging and reduces the risk of timing the market. Lumpsum is better when you have a large surplus and the market is undervalued.
What is a good SIP amount to start with?
You can start a SIP with as little as ₹500 per month. The key is to start early and increase the amount as your income grows (Step-up SIP).
How much return can I expect from SIP?
Historically, equity mutual funds in India have provided annual returns in the range of 12% to 15% over the long term (10+ years). However, returns are not guaranteed and are subject to market risks.