SIP Calculator | Systematic Investment Plan | Way2Tools

SIP Calculator

Calculate potential returns on your Systematic Investment Plan

Investment Details

Total Investment ₹12,00,000
Estimated Returns ₹11,23,391
Total Value ₹23,23,391

What is SIP?

SIP (Systematic Investment Plan) is a method of investing in mutual funds where you invest a fixed amount regularly (monthly/quarterly) instead of a lump sum. It helps in rupee cost averaging and compounding wealth over time.

How SIP Returns Are Calculated?

The formula used is:

FV = P × [{(1 + r)^n – 1} / r] × (1 + r)

Where:
FV = Future Value
P = Monthly investment amount
r = Monthly return rate (annual rate ÷ 12 ÷ 100)
n = Total number of months

Benefits of SIP

  • Disciplined approach to investing
  • Benefit from rupee cost averaging
  • Power of compounding works in your favor
  • Start with as little as ₹500 per month
  • Flexibility to increase/decrease investments

Frequently Asked Questions

Is SIP better than lump sum investment?
SIP is generally better for most investors as it reduces market timing risk through rupee cost averaging. However, lump sum can outperform in consistently rising markets. For long-term investors, SIP is usually recommended.
Can I change my SIP amount later?
Yes, most mutual funds allow you to increase your SIP amount (step-up SIP) or decrease it after the initial lock-in period (usually 6 months). Some funds even allow temporary pauses.
Are SIP returns guaranteed?
No, SIP returns depend on market performance. This calculator shows projected returns based on historical averages. Past performance doesn’t guarantee future results.
What’s the ideal SIP duration?
For equity funds, minimum 5-7 years is recommended to ride out market volatility. Debt funds can work with shorter durations (3+ years). Longer durations benefit more from compounding.

More Investment Tools

EMI Calculator

Calculate loan EMIs for home, car, personal loans

PPF Calculator

Calculate Public Provident Fund maturity amounts

FD Calculator

Calculate fixed deposit returns with interest rates

RD Calculator

Calculate recurring deposit maturity amounts

© 2023 Way2Tools. All rights reserved.

Free online tools for developers, designers, and everyone else.

Scroll to Top