Free SIP Calculator | Unit Converters
Total Investment
₹6,00,000
Total Gains
₹5,61,695
Maturity Amount
₹11,61,695
How It Works
Enter Details
Monthly investment, return rate, time period
Calculate Returns
Get maturity amount and gains
What is SIP Calculator?
What
SIP calculator helps you calculate the maturity amount and returns from your systematic investment plan in mutual funds.
Why
Used for financial planning, wealth creation, and understanding the power of compounding in long-term investments.
Applications
Retirement planning, goal-based investing, mutual fund investments, and wealth accumulation strategies.
A SIP calculator is a simple tool that helps you calculate the returns on your mutual fund investments made through SIP. SIP stands for Systematic Investment Plan. It is a way to invest in mutual funds where you put in a fixed amount of money every month.
The SIP calculator uses a simple formula to show you how much money you will have after a certain time period. It takes into account your monthly investment amount, the expected annual return rate, and the time period of investment.
This calculator helps you plan your financial goals better. You can see how small monthly investments can grow into a large amount over time through the power of compounding.
Common SIP Examples
| Monthly Investment | Annual Return | Time Period | Total Investment | Maturity Amount | Total Gains |
|---|---|---|---|---|---|
| ₹1,000 | 12% | 5 years | ₹60,000 | ₹81,670 | ₹21,670 |
| ₹2,000 | 12% | 10 years | ₹2,40,000 | ₹4,59,428 | ₹2,19,428 |
| ₹5,000 | 15% | 15 years | ₹9,00,000 | ₹27,13,654 | ₹18,13,654 |
| ₹10,000 | 12% | 20 years | ₹24,00,000 | ₹99,15,158 | ₹75,15,158 |
*These examples show how different monthly investments can grow over time with compound returns. Actual returns may vary based on market conditions.
SIP Calculation Formula
Formula Used:
Where:
M = Maturity Amount
P = Monthly Investment Amount
r = Monthly Rate of Return (Annual Rate / 12)
n = Total Number of Months (Years × 12)
Step-by-Step Calculation:
- Convert annual return rate to monthly rate
- Calculate total number of months
- Apply the SIP formula
- Calculate total investment and gains
Benefits of SIP:
- Power of compounding
- Rupee cost averaging
- Disciplined investing
- Flexible investment amounts
Frequently Asked Questions
What is SIP?
SIP (Systematic Investment Plan) is a method of investing in mutual funds where you invest a fixed amount regularly at predetermined intervals. It helps you build wealth through disciplined investing and takes advantage of rupee cost averaging.
How is SIP return calculated?
SIP returns are calculated using the compound interest formula. The calculator considers your monthly investment amount, expected annual return rate, and investment period to show your maturity amount and total gains.
What is a good SIP amount?
A good SIP amount depends on your income, expenses, and financial goals. Generally, investing 10-20% of your monthly income through SIP is recommended. Start small and increase gradually as your income grows.
Can I change my SIP amount?
Yes, most mutual fund companies allow you to increase, decrease, or pause your SIP amount based on your financial situation. You can also start additional SIPs or stop existing ones as needed.
What is the minimum SIP amount?
Most mutual funds allow SIP starting from ₹500 per month, though some funds may have higher minimum amounts. Many funds also offer SIPs starting from ₹100 per month for certain schemes.
How accurate is this SIP calculator?
This SIP calculator provides accurate calculations based on the inputs you provide. However, actual returns may vary due to market conditions, fund performance, and other factors. Use it as a planning tool.
What is the power of compounding in SIP?
Compounding means earning returns on your returns. In SIP, your money grows not just from your monthly investments but also from the returns earned on previous investments, creating a snowball effect over time.
When should I start SIP?
The best time to start SIP is now. The earlier you start, the more time your money has to grow through compounding. Even small amounts invested early can grow into significant wealth over time.