Systematic Investment Plan (SIP) Calculator
Total Investment
₹12.00 Lakh
120 monthly installments of ₹10,000
Estimated Returns
₹11.23 Lakh
93.6% on investment
Future Value
₹23.23 Lakh
1.94x wealth growth
How does SIP work?
- You invest a fixed amount (₹10,000) every month
- When markets are down, your money buys more units
- When markets rise, your existing units gain value
- This strategy is called "Rupee Cost Averaging"
Interpreting Your Results
Total Invested Amount
This is the total capital you put in over the entire investment period. It is simply your monthly investment multiplied by the total number of months.
Estimated Returns
This is the wealth generated by your investment. It is the difference between the future value and your total invested amount. This portion highlights the effectiveness of your <strong>mutual fund calculator</strong>.
Future Value
This is the projected total value of your investment at the end of the period. It includes your principal and the compounded returns, showing the full potential of your <strong>systematic investment plan</strong>.
Unlock Your Financial Future with Our SIP Calculator
Investment Scenarios
Scenario 1: The Early Starter
An individual invests ₹5,000 per month for 20 years at an expected return of 12%.
Calculation Steps
- Monthly Investment: ₹5,000
- Expected Return: 12%
- Period: 20 Years
Scenario 2: The Ambitious Planner
An investor targets a large corpus by investing ₹20,000 per month for 15 years at 15% return.
Calculation Steps
- Monthly Investment: ₹20,000
- Expected Return: 15%
- Period: 15 Years
How to Use Our SIP Calculator
Enter Your Monthly Investment
Input the amount you plan to invest each month. This is the foundation of your <strong>systematic investment plan</strong>.
Set the Expected Annual Return
Provide the annual return rate (%) you expect from your investment. This is a crucial variable for calculating your potential <strong>SIP returns</strong>.
Define the Investment Period
Specify the number of years you plan to stay invested. The longer the duration, the more significant the effect of compounding on your <strong>wealth growth</strong>.
Why Choose a Systematic Investment Plan?
Disciplined Investing
Automates your investments, ensuring you invest regularly without being influenced by market sentiment. This consistency is crucial for long-term success.
Rupee Cost Averaging
Your fixed investment buys more units when the market is low and fewer when it is high. This averages out your purchase cost over time, mitigating market volatility.
Power of Compounding
The returns you earn also start generating their own returns. Our <strong>future value calculator</strong> demonstrates how compounding can significantly boost your wealth over the long term.
Flexibility and Affordability
You can start a <strong>monthly investment</strong> with a small amount and have the flexibility to increase, decrease, or stop your SIPs as per your financial situation.
Understanding the Parameters
Monthly Investment (P)
The fixed amount you invest every month.
Expected Annual Return (r)
The projected annual growth rate of your investment. This is an estimate and actual returns may vary.
Investment Period (t)
The total duration in years for which you plan to run the SIP.
The Formula Behind the Magic
Our SIP calculator uses the standard future value formula to ensure accuracy.
SIP Future Value (FV)
Where P is the monthly investment, i is the monthly interest rate (annual rate / 12 / 100), and n is the number of installments (years * 12).
FV = P * [((1 + i)^n - 1) / i] * (1 + i)
Example: This formula calculates the future value of your series of investments, factoring in the compounding effect.
Frequently Asked Questions about SIP
A Systematic Investment Plan, or SIP, is a method of investing in mutual funds where you invest a fixed amount of money at regular intervals (usually monthly). It helps in disciplined investing, rupee cost averaging, and harnessing the power of compounding. Our SIP calculator is a great tool to see this in action.
Our investment calculator uses the standard future value of an annuity formula. You provide the monthly investment amount, the expected annual return rate, and the investment period. The calculator then projects the future value, showing you the total invested amount and the estimated returns. This systematic investment plan tool simplifies complex calculations.
Rupee cost averaging is an advantage of SIPs. When the market is low, your fixed monthly investment buys more units of a mutual fund, and when the market is high, it buys fewer units. Over time, this averages out the purchase cost, reducing the impact of market volatility. Using a reliable SIP calculator helps you focus on long-term goals rather than short-term market fluctuations.
Yes, this future value calculator is versatile. You can use it for any type of mutual fund (equity, debt, or hybrid) by providing an expected annual return rate. Remember that the actual returns may vary based on market performance. This tool is for estimation and planning purposes.
Disclaimer
This SIP calculator is provided for informational and illustrative purposes only. The results are based on the inputs you provide and do not guarantee future returns. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. We are not liable for any decisions made based on the information provided by this tool.