The SIP calculator helps estimate the potential growth of your Systematic Investment Plan (SIP) investment over your chosen time frame. SIP is a convenient method to save for your long-term financial goals. SIPs usually allow you to invest weekly, quarterly, or monthly. Systematic Investment Plan or SIP is a process of investing a fixed sum of money in mutual funds at regular intervals.

What is a SIP Calculator?

A SIP calculator is a simple tool that allows individuals to get an idea of the returns on their mutual fund investments made through SIP. Systematic Investment Plan (SIP) in mutual funds have become one of the most popular investment options for millennials lately.

How do SIP calculators work?

A SIP plan calculator works on the following formula –

M = P × ({[1 + i]^n – 1} / i) × (1 + i)

In the above formula –

• M is the amount you receive upon maturity.
• P is the amount you invest at regular intervals.
• n is the number of payments you have made.
• i is the periodic rate of interest.