SIP Calculator
Calculate SIP returns and investment growth with systematic investment planning
Enter SIP details and click Calculate to see investment growth
What is SIP?
Systematic Investment Plan (SIP) is a method of investing in mutual funds where you invest a fixed amount regularly (monthly/quarterly) instead of investing a lump sum. It helps in rupee cost averaging and building wealth through disciplined investing.
How SIP Returns are Calculated
SIP returns are calculated using the compound interest formula with monthly contributions:
FV = PMT × [((1 + r)^n - 1) / r] × (1 + r)Where FV = Future Value, PMT = Monthly Payment, r = Monthly Return Rate, n = Number of Months
Benefits of SIP
- ✓Rupee Cost Averaging: Buy more units when prices are low, fewer when high
- ✓Power of Compounding: Earn returns on your returns over time
- ✓Disciplined Investing: Automated investments build good financial habits
- ✓Flexibility: Start with as low as ₹500 per month
- ✓No Market Timing: Reduces the risk of investing at wrong time
Step-Up SIP
Step-up SIP allows you to increase your SIP amount annually by a fixed percentage. This helps counter inflation and accelerate wealth creation.
Example: If you start with ₹5,000/month and choose 10% step-up, your SIP will increase to ₹5,500 in year 2, ₹6,050 in year 3, and so on.
SIP vs Lump Sum
SIP Advantages
- • Lower risk due to averaging
- • Easier to start with small amounts
- • Disciplined approach
- • Reduces market timing risk
Lump Sum Advantages
- • Higher returns in bull markets
- • Full exposure to market growth
- • No transaction costs over time
- • Suitable for large amounts
Tips for Successful SIP
- 💡Start early to maximize the power of compounding
- 💡Choose funds based on your risk tolerance and goals
- 💡Don't stop SIP during market downturns
- 💡Review and rebalance your portfolio annually
- 💡Consider step-up SIP to counter inflation
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