SIP Calculator
Start Small, Grow Big – Harness the Power of SIP for Wealth Creation!
Investment Breakdown
What Is a SIP (Systematic Investment Plan) Calculator?
A SIP (Systematic Investment Plan) Calculator is a financial tool that helps estimate the potential returns on regular, fixed investments made at periodic intervals (usually monthly) in instruments like mutual funds, stocks, or other market-linked assets. It uses the power of compounding to project how your investments might grow over time based on an assumed rate of return.
₹1.5 lakh
SIPs in ELSS funds offer ₹1.5L deduction under Section 80C
Higher Returns
Equity SIPs (~12% returns) outperform inflation (~6-7%)
Power of Compounding
Long-Term Growth: Even small amounts grow significantly over time due to compounding
SIP Calculator Work and Calculation Formula?
The SIP calculator use formula below:Â
FV = P × [ ( (1 + r)^n – 1 ) / r ] × (1 + r)
where as,
FV = Future Value (Maturity Amount)P = Monthly Investment Amountr = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)n = Total Number of Months (Years × 12)
For example, If you invest ₹5,000 monthly over a 10-year period with an anticipated annual return of 12%, the total value at maturity—calculated using the SIP formula—would amount to approximately ₹11,61,695.
| Parameter | Value |
|---|---|
| Monthly Investment | ₹5,000 |
| Investment Period | 10 years |
| Expected Annual Return | 12% |
| Total Invested | ₹6,00,000 |
| Estimated Returns | ₹5,61,695 |
| Maturity Value | ₹11,61,695 |
The table below shows the calculations:
| Year | Invested Amount (₹) | Wealth Gained (₹) | Expected Amount (₹) |
|---|---|---|---|
| 2025 | ₹60,000 | ₹4,046 | ₹64,046 |
| 2026 | ₹60,000 | ₹12,170 | ₹136,216 |
| 2027 | ₹60,000 | ₹21,322 | ₹217,538 |
| 2028 | ₹60,000 | ₹31,636 | ₹309,174 |
| 2029 | ₹60,000 | ₹43,258 | ₹412,432 |
| 2030 | ₹60,000 | ₹56,354 | ₹528,786 |
| 2031 | ₹60,000 | ₹71,108 | ₹659,894 |
| 2032 | ₹60,000 | ₹87,738 | ₹807,632 |
| 2033 | ₹60,000 | ₹106,476 | ₹974,108 |
| 2034 | ₹60,000 | ₹127,588 | ₹1,161,696 |
Frequently Asked Questions
Most mutual funds allow SIPs starting from ₹100/month, making it accessible to all investors.
Yes, all our Tools are completely free and do not require any registration or payment.
SIP works best for long-term goals (5+ years). The longer you stay invested, the higher the compounding benefits.
Yes, there are following tax benefits listed below:
- Equity SIPs (held for over one year): A 10% long-term capital gains (LTCG) tax applies to profits exceeding ₹1 lakh.
- Debt SIPs: Taxed according to the individual’s applicable income tax bracket.
- ELSS SIPs: Exempt from taxes up to ₹1.5 lakh under the tax-saving provisions of Section 80C.
No. SIPs are market-linked, and returns depend on fund performance. However, rupee cost averaging reduces risk.
Yes! Most mutual fund SIPs don’t require a demat account.
The majority of fund providers typically offer a grace period (15-30 days). Once this period ends, the SIP could be subject to suspension or termination.
Returns depend on market performance. Historically:
- Equity SIPs: 10–15% p.a. (long-term)
- Debt SIPs: 6–8% p.a.
- Hybrid SIPs: 8–12% p.a.
