SIP Calculator
Calculate your mutual fund SIP returns and plan your financial goals
Total Value at Maturity
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What is SIP?
A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly in mutual funds. It is one of the most popular and disciplined ways to invest in India, allowing investors to benefit from rupee cost averaging and the power of compounding.
With SIP, you invest a fixed amount — say ₹5,000 every month — in a mutual fund scheme of your choice. The amount is automatically debited from your bank account on a fixed date each month.
SIP Calculation Formula
The SIP maturity amount is calculated using the following formula:
M = P × ({[1 + r]^n – 1} / r) × (1 + r)
Where:
M = Maturity Amount
P = Monthly SIP Amount
r = Monthly Rate of Return = (Annual Rate / 100) / 12
n = Number of Months = Years × 12
How to Use This SIP Calculator
1. Enter your monthly SIP amount — the amount you plan to invest every month.
2. Enter the expected annual return rate — typically 10–15% for equity mutual funds in India.
3. Enter the investment duration in years — longer the period, higher the returns due to compounding.
The calculator instantly shows your total investment, estimated returns and final maturity value.
Benefits of SIP Investment
Rupee Cost Averaging: You buy more units when prices are low and fewer when prices are high, reducing the average cost per unit over time.
Power of Compounding: Your returns earn returns, which is why starting early makes a massive difference — even a few years earlier can double your wealth.
Financial Discipline: SIP automates your investment so you stay consistent without worrying about market timing.
Frequently Asked Questions
What is the minimum SIP amount?
Most mutual funds allow SIP starting from ₹100 or ₹500 per month. Many popular funds like large-cap and ELSS funds allow SIPs from ₹500/month.
What return rate should I use for SIP calculator?
For equity mutual funds (large-cap), 10–12% p.a. is a reasonable assumption for long-term planning. For mid/small-cap funds, you can use 12–15%. These are estimates — actual returns may vary.
Is SIP safe?
SIP in equity mutual funds carries market risk. However, long-term SIPs (10+ years) in diversified equity funds have historically delivered positive returns in India. Debt fund SIPs carry lower risk with lower returns.
Can I stop SIP anytime?
Yes, most SIPs can be paused or stopped anytime without any penalty. The invested amount continues to remain in the fund and grows at market rate.
Does this calculator account for taxes?
No, this calculator shows pre-tax returns. Equity mutual fund gains held for more than 1 year are taxed as LTCG at 12.5% above ₹1.25 lakh per year. Consult a tax advisor for accurate tax planning.