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SIP Calculator

Estimate the future value of your Systematic Investment Plan. Formula uses compound monthly returns.

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Definition

What is SIP

SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds. It helps in disciplined investing and long-term wealth creation.

Formula

SIP Formula

Future Value (FV) = P × [((1 + r)^n − 1) / r] × (1 + r)

P = Monthly investment
r = Monthly return rate (annual return ÷ 12 ÷ 100)
n = Total number of months
Example

SIP Calculation Example

Monthly Investment₹10,000
Return Rate12% per year
Time10 years
Estimated Value
₹23,00,000
Why SIP is Useful
01

Encourages disciplined investing

02

Benefits from compounding

03

Reduces market timing risk

04

Suitable for long-term goals

Benefits of SIP

Start with small amounts

Flexible and convenient

Power of compounding

Ideal for long-term wealth building

Limitations

SIP returns are market-linked and not guaranteed. Actual returns may vary based on market performance.

Frequently Asked Questions

SIP is a method of investing regularly in mutual funds.

SIP is subject to market risks but reduces timing risk over the long term.

Yes, you can increase or modify your SIP anytime.

Returns vary depending on market performance and fund selection.