SIP Calculator

Invest small amounts regularly to build wealth over time.

Monthly SIP Investment

Calculate returns on your systematic investment plan

Monthly investment

₹

Expected return rate (p.a)

Time period

Invested amount₹30,00,000

Est. returns₹28,08,477

Total value₹58,08,477

Invested

Returns

What is SIP?

A Systematic Investment Plan (SIP) is an investment method where a fixed amount is invested at regular intervals into a mutual fund, regardless of market conditions. Think of it like saving a fixed amount every month — but instead of just saving, you're building wealth. You buy more units when prices are low and fewer when prices are high, averaging out your cost over time.

This calculator helps you find

•If I invest a fixed amount every month, how much will it grow into?
•How long will it take to reach my financial goal?
•What happens if I increase the monthly amount or duration?

Best for

•Long-term goals like retirement, house, or education
•Salaried individuals with regular income
•Beginners who want disciplined investing

A Systematic Investment Plan (SIP) calculator helps you estimate the future value of regular monthly investments in mutual funds or similar instruments. SIP allows you to invest a fixed amount at regular intervals, benefiting from rupee cost averaging and the power of compounding.

SIP is one of the most popular investment strategies for building long-term wealth. By investing consistently regardless of market conditions, you automatically buy more units when prices are low and fewer when prices are high, averaging out your cost per unit over time.

How SIP Returns are Calculated

SIP returns are calculated using the future value of an annuity formula. Each monthly installment compounds independently from its date of investment. The formula accounts for the investment amount, expected rate of return, and investment duration. For example, a monthly SIP of $500 at 12% annual return for 20 years would grow to approximately $494,000 — from a total investment of $120,000.

The Power of Compounding in SIP

Compounding is the key to SIP wealth creation. Your returns earn returns, creating exponential growth over time. Starting a SIP of $500/month at age 25 vs age 35 (at 12% return) means: by age 55, the early starter has ~$1.76 million while the late starter has ~$494,000 — despite investing only $60,000 more. Starting early makes a dramatic difference.

SIP vs Lumpsum Investment

SIP spreads your investment over time, reducing the impact of market volatility through rupee cost averaging. Lumpsum investing puts all money to work immediately, which is better in consistently rising markets. Studies show that lumpsum investing outperforms SIP about 65% of the time in the long run, but SIP is psychologically easier and more accessible for regular income earners.

Frequently Asked Questions

What is a good monthly SIP amount to start with?

There is no minimum ideal amount — the best SIP amount is what you can invest consistently without financial stress. Even $50-$100 per month can grow significantly over 20-30 years. A common guideline is to invest 15-20% of your monthly income via SIP. You can also increase your SIP amount annually by 10% (step-up SIP) to accelerate wealth creation.

What return can I expect from SIP in mutual funds?

Historical long-term returns vary by fund type: equity mutual funds (large-cap) typically deliver 10-14% annually, mid-cap funds 12-16%, small-cap 14-18%, and debt funds 6-8%. These are long-term averages over 10+ years. Short-term returns can vary significantly. For planning purposes, 10-12% is a reasonable assumption for equity SIP over 15+ years.

Can I stop or pause my SIP anytime?

Yes, SIPs can be paused, stopped, or modified at any time without penalty. There is no lock-in period for regular SIP investments (except ELSS funds which have a 3-year lock-in per installment). You can also increase or decrease the SIP amount. However, consistency is key to benefiting from rupee cost averaging and compounding.