Sip Investment Calculator

Estimate the future value of your Systematic Investment Plan (SIP).

Monthly Investment Amount (₹):

Expected Annual Return Rate (%):

Investment Period (Years):

Understanding SIP Investment

A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly (e.g., monthly, quarterly) into a mutual fund scheme. It's similar to a recurring deposit, but instead of a fixed interest rate, your returns are linked to the market performance of the mutual fund.

How SIP Works

When you invest through SIP, a predetermined amount is debited from your bank account on a chosen date and invested in a mutual fund scheme. This regular investment allows you to buy more units when the market is low and fewer units when the market is high. This strategy is known as "Rupee Cost Averaging," which helps in reducing the average cost per unit over time and mitigating market volatility.

Key Benefits of SIP

Rupee Cost Averaging: As explained, this strategy helps in averaging out the purchase cost of units, reducing the risk associated with market timing.
Power of Compounding: Returns generated from your investments are reinvested, which then generate their own returns. Over longer periods, this compounding effect can significantly boost your wealth.
Financial Discipline: SIPs instill a habit of regular saving and investing, which is crucial for achieving long-term financial goals.
Affordability: You can start an SIP with amounts as low as ₹500 per month, making it accessible to a wide range of investors.
Flexibility: Most SIPs offer flexibility to increase, decrease, pause, or stop your investments as per your financial situation.

Factors Affecting SIP Returns

The final value of your SIP investment is primarily influenced by three factors:

Monthly Investment Amount: The higher the amount you invest regularly, the larger your total corpus will be.
Expected Annual Return Rate: This is the average annual growth rate your investment is expected to achieve. It's crucial to choose funds with a good track record and realistic return expectations.
Investment Period: The longer you stay invested, the more time your money has to compound, leading to potentially much higher returns.

How to Use the SIP Investment Calculator

Our SIP calculator helps you estimate the future value of your investments. Simply input the following details:

Monthly Investment Amount: The fixed amount you plan to invest every month.
Expected Annual Return Rate (%): Your anticipated average annual return from the mutual fund. Remember, past performance is not indicative of future results.
Investment Period (Years): The total number of years you plan to continue your SIP.

The calculator will then provide you with the total amount you would have invested, the estimated returns earned, and the total estimated value of your investment at the end of the period.

Example Calculation:

Let's say you invest ₹5,000 per month for 10 years with an expected annual return of 12%.

Monthly Investment: ₹5,000
Investment Period: 10 years (120 months)
Expected Annual Return: 12%

Using the calculator, you would find:

Total Invested Amount: ₹6,00,000 (₹5,000 x 120 months)
Estimated Returns: Approximately ₹5,62,000
Total Estimated Value: Approximately ₹11,62,000

This example clearly demonstrates the power of compounding and regular investing through SIPs.

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