SIP Calculator
Calculate how much your monthly SIP investment will grow. Enter amount, expected return, and investment period to get maturity value and wealth gain. Supports both SIP and lump sum.
Results
Your money grows 1.94x in 10 years at 12% p.a.
Frequently Asked Questions
What is SIP and how does it work?
SIP (Systematic Investment Plan) is a method of investing a fixed amount in mutual funds at regular intervals (monthly). Each month your money buys units at the prevailing NAV. Over time, you benefit from rupee cost averaging and compounding. A ₹5,000/month SIP at 12% for 10 years grows to ₹11.6 lakh — from just ₹6 lakh invested.
How is SIP return calculated?
SIP uses compound interest formula: M = P × [(1+r)^n – 1] / r × (1+r). Where P = monthly investment, r = monthly rate (annual rate ÷ 12), n = number of months. Example: ₹5,000/month, 12% p.a. (1% monthly), 120 months: M = 5000 × [(1.01)^120 – 1] / 0.01 × 1.01 = ₹11.6 lakh.
What return rate should I assume for SIP?
Equity mutual funds historically return 12–15% p.a. over long periods (10+ years). Use 12% for conservative planning, 15% for optimistic. Debt funds return 6–8%. For balanced funds, use 10%. Remember: past returns don't guarantee future performance.
Is SIP better than lump sum?
SIP is better for most salaried investors because: (1) No need to time the market, (2) Rupee cost averaging reduces risk, (3) Builds discipline with regular investing. Lump sum is better when you have a large amount and markets are at a low. For most people, SIP is the practical choice.
What is the minimum SIP amount?
Most mutual funds allow SIP starting from ₹100–₹500 per month. Popular starting points: ₹500 (beginner), ₹1,000–₹5,000 (regular investor), ₹10,000+ (aggressive wealth builder). Start small — the key is consistency over time.
How long should I invest in SIP?
The longer, the better — thanks to compounding. A ₹5,000 SIP at 12%: 5 years = ₹4.1L (from ₹3L), 10 years = ₹11.6L (from ₹6L), 20 years = ₹49.9L (from ₹12L). Your money grows 4x in wealth ratio from 5 to 20 years. Minimum recommended horizon: 5 years for equity funds.