Formula: FV = P × ((1+i)^n − 1)/i × (1+i), where i = annual rate/12, n = months. Actual market returns vary. Past performance is not indicative of future results.
SIP Calculator: Calculate Your Future Wealth with Systematic Investing
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.
The Power of SIP Compounding: Time is Your Ally
The table below illustrates the exponential growth when investing ₹10,000 per month at an assumed annual return of 12%:
| Investment Tenure | Total Principal Invested | Total Capital Gains | Estimated Maturity Corpus |
| 5 Years | ₹6,00,000 | ₹2,20,535 | ₹8,20,535 |
| 15 Years | ₹18,00,000 | ₹32,01,155 | ₹50,01,155 |
| 30 Years | ₹36,00,000 | ₹3,16,63,618 | ₹3,52,63,618 |
As shown, the capital gains earned in the later years far surpass the principal amount. Use our SIP Calculator now to input your monthly investment, set your tenure, and begin planning your route to long-term financial freedom.