SIP Calculator
Estimate your mutual fund returns and plan your financial goals with our easy-to-use SIP calculator.
SIP Inputs
Investment Projection
Invested Amount
₹12,00,000
Estimated Gains
₹11,23,391
Future Value
₹23,23,391
What is a SIP Calculator?
A SIP (Systematic Investment Plan) calculator is a powerful tool that helps you understand the potential returns on your mutual fund investments made through SIP. By entering your monthly investment amount, expected return rate, and investment duration, the calculator projects the future value of your investment, illustrating the magic of compounding.
How to Use Our SIP Calculator
- Enter the amount you wish to invest monthly in the 'Monthly Investment' field.
- Provide the expected annual rate of return from your mutual fund investment in the 'Expected Rate of Return (%)' field.
- Set the duration for which you want to stay invested in the 'Investment Period (Years)' field.
- Click the 'Calculate' button to see your projected wealth gain, maturity value, and investment graph.
Frequently Asked Questions (FAQs)
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is a method of investing in mutual funds where you can invest a fixed amount of money at regular intervals (e.g., monthly, quarterly). It helps in disciplined investing and benefits from the power of compounding and rupee cost averaging.
How does a SIP calculator work?
A SIP calculator uses a formula to project the potential maturity amount of your investment. It takes into account your monthly investment amount, the expected annual rate of return, and the investment tenure. The formula is M = P × ({[1 + i]^n – 1} / i) × (1 + i), where M is the maturity amount, P is the monthly investment, i is the periodic interest rate, and n is the number of payments.
What are the benefits of investing through SIP?
The main benefits of SIP are disciplined investing, rupee cost averaging (which reduces the impact of market volatility), and the power of compounding. It also allows you to start investing with a small amount, making it accessible to everyone.
Can I stop my SIP anytime?
Yes, you have the flexibility to stop your SIP at any time without any penalty. You can also choose to redeem your accumulated units or let them remain invested.