SIP Return Calculator
Visualize your wealth creation journey with the power of compounding.
Expected Total Value
₹ 0
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is a method of investing a fixed sum regularly in a mutual fund scheme. SIP allows an investor to buy units on a given date each month, so that one can implement an investment plan for oneself. It is one of the most effective ways to build wealth over the long term through the power of compounding.
How the SIP Calculator Works?
The calculator uses the compound interest formula tailored for monthly contributions. It assumes the expected rate of return remains constant over the investment period.
Formula Used:
FV = P × [ (1 + i)^n - 1 ] × (1 + i) / i
- FV: Future Value
- P: Monthly Investment Amount
- i: Periodic Interest Rate (Annual Rate / 12 / 100)
- n: Total number of months
Example Calculation
If you invest ₹5,000 per month for 10 years at an expected return of 12%:
- Total Invested: ₹6,00,000
- Estimated Returns: ₹5,61,695
- Total Value: ₹11,61,695
Benefits of Using This Tool
- Goal Planning: Helps you determine how much to invest to reach a target (e.g., buying a car, retirement).
- Visualization: The chart clearly shows how much is your own money vs. the money earned through interest.
- Quick & Free: No login required, get results instantly.
SIP FAQs
Can I lose money in SIP?
Mutual fund investments are subject to market risks. While SIPs average out the cost of buying (reducing risk), returns are not guaranteed and can be negative in the short term.
Is SIP tax-free?
No. Returns from equity mutual funds held for over 1 year are subject to LTCG tax (10% on gains above ₹1 Lakh). Short-term gains are taxed at 15%.