SIP Calculator

What is SIP (Systematic Investment Plan)?

A Systematic Investment Plan (SIP) is a disciplined way of investing in mutual funds where you invest a fixed amount at regular intervals, usually monthly. SIP helps investors build long-term wealth by taking advantage of compounding and reducing market timing risk.

How Does This SIP Calculator Work?

This SIP calculator estimates the future value of your monthly investments based on the SIP amount, expected return rate, and investment duration.

SIP Calculation Formula Used

The calculator uses the standard SIP future value formula:

FV = P × [((1 + r)ⁿ − 1) / r] × (1 + r)

Where
P = Monthly SIP amount
r = Monthly rate of return
n = Total number of months

What is Step-Up SIP?

A Step-Up SIP allows you to increase your SIP amount every year by a fixed percentage. This helps you invest more as your income grows and significantly increases long-term returns.

Benefits of Investing Through SIP

• Encourages disciplined investing
• Reduces market volatility risk
• Power of compounding
• Affordable and flexible
• Ideal for long-term goals

How to Use This SIP Calculator

• Select your monthly SIP amount
• Choose expected annual return rate
• Select investment duration
• Enable Step-Up SIP (optional)
• View instant results, charts & year-wise projection

SIP vs Lump Sum Investment

SIP is preferred by most investors because it spreads investments over time and reduces market timing risk. Lump sum investments require correct market timing, while SIP offers consistency and peace of mind.

Frequently Asked Questions (FAQ)

Is SIP safe for beginners?

Yes, SIP is one of the safest and easiest investment options for beginners.

Can I stop or change my SIP?

Yes, SIPs are flexible. You can modify, pause, or stop them anytime.

Does SIP guarantee returns?

No, SIP returns depend on market performance and are not guaranteed.