A SIP (Systematic Investment Plan) calculator computes the total wealth you can build by investing a fixed amount every month in a mutual fund or other investment vehicle.
About this calculator
A SIP (Systematic Investment Plan) calculator computes the total wealth you can build by investing a fixed amount every month in a mutual fund or other investment vehicle. SIP uses compounding, which means your returns start earning their own returns over time.
Starting early, even with a small amount, can make a big difference over the long term. It shows how that growth can build over time.
Common uses
- Estimate how much wealth a monthly SIP of ₹5,000 will build over 20 years
- Determine the monthly investment needed to reach a financial goal
- Compare SIP returns at different expected return rates
- See the impact of starting your SIP 5 years earlier
- Plan retirement savings through monthly SIP contributions
Frequently asked questions
What is a SIP and how does it work?
A Systematic Investment Plan (SIP) is a method of investing a fixed amount at regular intervals (usually monthly) in a mutual fund. The investment buys units at the prevailing NAV. Over time, compounding and rupee-cost averaging work in your favor to build wealth.
What is rupee-cost averaging in SIP?
Rupee-cost averaging means that when markets are down, your fixed SIP amount buys more units, and when markets are up, it buys fewer. Over time, this averages out your cost per unit, reducing the risk of investing a lump sum at a market peak.
What is a realistic expected return rate for SIP calculations?
Large-cap equity mutual funds in India have historically returned 10–12% annually over 10+ year periods. Debt funds return 6–8%. For conservative estimates, use 10–12% for equity SIPs. Past performance does not guarantee future returns.
Can I stop or change my SIP anytime?
Yes, most SIPs are flexible, you can pause, stop, increase, or decrease your monthly investment without penalty (though exit loads may apply within a certain period depending on the mutual fund scheme).