What Is a SIP Calculator?
A SIP (Systematic Investment Plan) calculator projects the future value of regular, periodic investments in mutual funds or other instruments. It demonstrates the power of disciplined investing and compound returns over time, helping you plan your wealth-building journey.
How to Use This SIP Calculator
- Enter your monthly SIP investment amount.
- Specify the expected annual return rate and investment duration in years.
- Click “Calculate” to see the total invested amount, expected returns, and final corpus value.
Key Concepts
SIP leverages rupee cost averaging by investing a fixed amount at regular intervals regardless of market conditions, buying more units when prices are low and fewer when high. The future value formula accounts for compound returns on each installment. SIPs in equity mutual funds have historically delivered 10%–15% annualized returns over 10+ year periods in India.
FV = P × [((1+r)n − 1) ÷ r] × (1+r)
Frequently Asked Questions
What is rupee cost averaging?
When you invest a fixed amount regularly, you automatically buy more fund units when prices drop and fewer when prices rise. Over time, this averages out your purchase cost and reduces the impact of market volatility on your portfolio.
How much should I invest through SIP?
A common guideline is to invest at least 15%–20% of your monthly income. Start with what you can afford and increase the amount annually as your income grows. Even small SIPs of $100/month can grow substantially over 20–30 years.
Can I stop or modify my SIP?
Yes. SIPs are flexible—you can pause, increase, decrease, or stop them at any time without penalties. However, staying invested through market downturns typically yields better long-term results than stopping during dips.