SIP Calculator

How the SIP Calculator works

• A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund every month on a chosen date.
• You benefit from rupee-cost averaging: you buy more units when NAVs are low and fewer when NAVs are high.
• Returns compound over time — the longer you stay invested, the more powerful the effect becomes.
• This calculator assumes a constant annual return. Real markets fluctuate year to year.

FV = P × (((1 + r)^n − 1) / r) × (1 + r), where P is monthly SIP, r is monthly rate, n is number of months.

Example: ₹10,000/month for 15 years at 12% p.a.

Total invested ≈ ₹18 lakh. Estimated corpus ≈ ₹50 lakh. Roughly ₹32 lakh comes from compounding — illustrating why starting early matters more than timing the market.

Practical tips

• Increase your SIP by 10% each year (step-up SIP) to keep pace with salary growth.
• Prefer equity funds for goals 7+ years away; use debt or hybrid for nearer goals.
• Do not pause SIPs during corrections — that is often when rupee-cost averaging helps most.
• Link SIPs to specific goals (house, education, retirement) instead of investing vaguely.

Frequently asked questions

Is the return rate guaranteed?

No. The rate you enter is an assumption. Equity mutual funds can deliver higher or lower returns than the figure you model.

What is a good SIP amount to start with?

Start with an amount you can sustain without stress — even ₹500–₹1,000 builds the habit. Raise it as income grows.

SIP vs lumpsum — which is better?

SIPs suit regular income and reduce timing risk. Lumpsum can work if you have idle capital and a long horizon, ideally staggered via STP.

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