SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds, typically every month. It harnesses the power of compounding and rupee cost averaging.

How is SIP return calculated?

SIP maturity = M × [(1+r)^n - 1] / r × (1+r), where M is monthly investment, r is monthly rate, and n is number of months.

Is SIP return guaranteed?

No. SIP returns depend on market performance. Historical equity mutual fund SIPs have given 10-15% annualised returns over long periods, but past performance does not guarantee future results.

What is the minimum SIP amount?

Most mutual funds allow SIPs starting from as low as ₹500 per month (India) or $50 (US-based index fund equivalents).

Home›Finance›SIP Calculator

SIP Calculator

See how your monthly investment grows over time

Monthly Investment ? The fixed amount you invest every month. Even small amounts grow significantly over time due to compounding.

Expected Annual Return ? The expected yearly return on your investment. Equity mutual funds have historically returned 10-14% annually. Use 7-8% for conservative estimates.

Investment Period ? How long you plan to invest. The longer you invest, the more powerful compounding becomes. Even adding 5 more years can double your final amount.

1 yr10 years40 yrs

yrs

Maturity Value

—

Amount Invested

—

Est. Returns

—

Return %

—

What is a SIP?

A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month, automatically. Instead of trying to time the market, SIP spreads your investment across different market conditions — when markets are high you buy fewer units, when low you buy more. This is called rupee cost averaging.

SIPs are one of the most popular investment methods globally because they require discipline over timing, are accessible to anyone regardless of income level, and leverage the incredible power of compounding over time.

SIP Formula

Maturity Value = M × [(1+r)ⁿ − 1] ÷ r × (1+r)

Where:
M = Monthly investment amount
r = Monthly rate of return (Annual return ÷ 12 ÷ 100)
n = Total number of months (Years × 12)

How to use this calculator

Enter your monthly investment amount
Enter the expected annual return rate (use 12% for equity funds, 7% for conservative)
Set the investment period using the slider
Click "Calculate Returns" to see your wealth projection
Try adjusting the tenure to see how adding years dramatically grows your corpus

📘 Example Scenarios

Scenario 1 — Priya starts early at 25 🌱

Priya invests just ₹5,000/month starting at age 25, expecting 12% annual return for 30 years. Her total investment = ₹18,00,000. But her maturity value = approximately ₹1,75,00,000 — nearly 10× her investment! She retires at 55 with a substantial corpus, all from ₹5,000/month.

Scenario 2 — James invests for his child's education 🎓

James starts a SIP of $200/month when his daughter is born, targeting 8% annual return for 18 years. Total invested = $43,200. Maturity value = approximately $95,000 — more than enough for college tuition. Starting early made the difference.

Frequently asked questions

SIP is a way of investing a fixed amount regularly in mutual funds. It's like a recurring deposit but in market-linked funds, offering potentially higher returns over the long term.

SIP is generally better for salaried individuals as it aligns with monthly income cycles and reduces timing risk. Lump sum can outperform in a rising market, but SIP reduces volatility risk over time.

Yes. Most mutual funds allow you to pause SIPs for 1-3 months or stop them entirely without penalty. Your existing units remain invested and continue to grow.

A Step-up (or top-up) SIP automatically increases your monthly investment by a fixed percentage each year, in line with salary increases. This accelerates wealth creation significantly.