SIP Calculator
Calculate returns on your Systematic Investment Plan
SIP Investment Projection
SIP Calculator: Plan Your Systematic Investments for Maximum Returns
A SIP calculator is an essential tool for investors looking to understand the potential returns from their Systematic Investment Plans. Our SIP return calculator helps you visualize how regular investments in mutual funds can grow over time through the power of compounding.
Did you know? Investing ₹5,000 monthly through SIP at 12% annual return would grow to ₹12.5 lakhs in 10 years, while the total investment would be just ₹6 lakhs.
How a SIP Calculator Works
A SIP calculator uses the compound interest formula to project the future value of your regular investments. The formula used is:
FV = P × [{(1 + r)^n – 1} ÷ r] × (1 + r)
Where:
FV = Future Value of investments
P = Monthly investment amount
r = Monthly rate of return (annual rate ÷ 12)
n = Total number of months
Benefits of Using Our SIP Calculator
- Accurate projections: Get realistic estimates of your investment growth
- Financial planning: Determine how much to invest to reach your goals
- Comparative analysis: Compare different SIP scenarios easily
- Visual representation: See your investment growth through interactive charts
- Time horizon planning: Understand how investment duration affects returns
Why SIP Investing is Powerful
1. Rupee Cost Averaging
SIPs automatically buy more units when prices are low and fewer when prices are high, averaging your purchase cost.
2. Power of Compounding
Even small regular investments grow substantially over long periods due to compounding.
3. Disciplined Investing
SIPs enforce financial discipline by automating regular investments.
4. Flexibility
You can start, stop, increase or decrease SIP amounts as needed.
How to Use the SIP Calculator Effectively
- Set realistic return expectations: Equity funds typically return 10-15% long-term
- Consider inflation: Aim for returns that outpace inflation (6-7%)
- Increase SIP amounts annually: Boost investments with salary hikes
- Stay invested long-term: Minimum 5-7 years for equity investments
- Diversify: Spread SIPs across different fund categories
SIP vs Lump Sum Investment
While our SIP calculator focuses on systematic investments, here’s how SIP compares to lump sum investing:
- SIP: Reduces market timing risk, better for regular income earners
- Lump Sum: Better when markets are low, requires larger capital
- Combination: Many investors use both strategies together
Frequently Asked Questions
Q: How accurate is a SIP calculator?
A: Our SIP return calculator provides mathematical projections based on your inputs, but actual returns may vary.
Q: Can I change my SIP amount later?
A: Yes, most funds allow increasing, decreasing, or pausing SIPs.
Q: What’s the minimum SIP investment?
A: Typically ₹500 per month, though some funds allow ₹100-300.
Q: Are SIP returns guaranteed?
A: No, except for debt funds with fixed returns, equity SIP returns fluctuate.
Q: How is SIP taxed?
A: Tax depends on fund type and holding period (STCG/LTCG).
Start Your SIP Journey Today
Use our SIP calculator to plan your investments and take the first step toward financial freedom. Remember, in SIP investing, time in the market is more important than timing the market.