About the SIP Calculator
Our free SIP Calculator helps mutual fund investors project the compounding wealth growth of regular monthly investments. By leveraging disciplined systematic investing, you can build a substantial corpus over medium to long-term horizons.
How SIP Returns Are Calculated
Systematic Investment Plan (SIP) returns are calculated using the compound future value formula for periodic annuities:
$$FV = P \times \left( \frac{(1 + i)^n - 1}{i} \right) \times (1 + i)$$
Where:
- P: Periodic monthly investment amount
- i: Periodic rate of return ($\text{Annual Rate} \div 12 \div 100$)
- n: Total number of monthly payments ($\text{Years} \times 12$)
How to Use the Calculator
Simply adjust the inputs or sliders to match your financial goals:
- Monthly Investment: The amount you plan to invest every single month.
- Expected Annual Return Rate: The anticipated percentage growth rate per annum.
- Time Period: The total duration of your investment horizon in years.
The summary card updates instantly to show your total invested principal, estimated returns, and total future value.
Frequently Asked Questions (FAQs)
What are the benefits of investing via SIP?
SIPs promote financial discipline, leverage rupee-cost averaging during market fluctuations, and maximize the compounding effect over long investment horizons.
Can I modify or stop my SIP anytime?
Yes, most open-ended mutual fund SIPs allow you to pause, stop, or modify your monthly investment amount at any time without penalty fees.
Is SIP returns guaranteed?
No, mutual fund SIPs are subject to market risks, and historical returns do not guarantee future performance.
