SIP Calculator

What is SIP (Systematic Investment Plan)?

A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly in mutual funds. It helps in rupee cost averaging and builds wealth over time through the power of compounding.

SIP Calculation Formula

Future Value = P × ((1 + r)^n - 1) / r × (1 + r), where P = Monthly investment, r = Monthly return rate, n = Number of months. Our calculator uses this standard formula for accurate results.

Example Calculation

Monthly Investment: ₹10,000 | Expected Return: 12% | Tenure: 10 years
Total Invested: ₹12,00,000 | Wealth Gain: ₹11,23,456 | Future Value: ₹23,23,456

Benefits of SIP Calculator

• Plan long-term financial goals like retirement, children's education
• Understand the power of compounding over time
• Compare different investment amounts and tenures
• Estimate corpus needed for specific goals
• Track wealth creation progress

Power of Compounding

Starting early and staying invested is key. A person starting ₹10,000 SIP at age 25 vs 35 can have significantly higher corpus due to compounding. Use this calculator to see the impact of starting early.

SIP vs Lump Sum

SIP reduces market timing risk through rupee cost averaging. Lump sum may be better in falling markets. For most retail investors, SIP is recommended for long-term wealth creation.