SIP Investment Calculator
The SIP Investment Calculator helps you plan your monthly investments and estimate your returns over time. With an assumed rate of return, this calculator gives you the power to project the growth of your SIP over the selected investment period. Use this calculator to understand how your investments can grow and take charge of your financial future.
About SIP
Systematic Investment Plan (SIP) is a disciplined way of investing in mutual funds regularly. It allows you to invest a fixed sum at regular intervals, usually monthly, into mutual fund schemes. SIP helps in averaging out the cost of investment and is an effective tool for long-term wealth creation.
Key Benefits of SIP
- Helps in creating wealth over the long term with regular investments.
- Allows rupee cost averaging to minimize market volatility risks.
- Encourages disciplined investing without the need to time the market.
- Flexible and convenient for investors with any income level.
SIP Calculation Formula
The future value of a SIP is calculated using the following formula:
Future Value (FV) = P × [{(1 + r)^n - 1} ÷ r] × (1 + r)
Where:
- P: Monthly SIP amount
- r: Monthly rate of return (annual return ÷ 12)
- n: Total number of months (investment years × 12)
How the SIP Investment is Calculated
Example Scenario:
- SIP Amount: ₹10,000 per month
- Annual Return: 12% (1% per month)
- Investment Period: 10 Years
Calculation:
- Total Investment: ₹10,000 × 12 × 10 = ₹12,00,000
- Total Maturity Value: ₹[Calculated using SIP formula]
SIP Investment Breakdown (Year-Wise)
The table below shows the year-wise breakdown of your investment, the interest earned, and the maturity amount at the end of each year.
| Year |
Total Invested (INR) |
Interest Earned (INR) |
Maturity Amount (INR) |
Export Options
Once the SIP investment calculation is complete, you can export your results in various formats for future reference or printing. Choose any of the following options:
Benefits of Using This Calculator
- Helps you plan your financial future effectively.
- Estimates investment returns with precision.
- Enables informed decision-making by providing transparency.
- Yearly breakdown allows you to see the growth of your SIP over time.
Note:
Ensure accurate inputs for reliable calculations. The return rates may vary, and it's important to use conservative estimates for long-term planning.