Estimate your future wealth and mutual fund investment growth based on monthly contributions, expected annual returns, and tenure.
Calculate Your SIP Growth
–
Invested Amount
–
Est. Returns
–
How Does a Systematic Investment Plan (SIP) Work?
A Systematic Investment Plan (SIP) allows individuals to invest a fixed sum of money at regular intervals into mutual fund schemes. Instead of depositing a single lump sum, SIP encourages disciplined long-term financial planning.
The Mathematical Formula for SIP Calculation
The total maturity value of your SIP investments is computed using the following compounding formula:
Rupee/Dollar Cost Averaging: You buy more fund units when market prices drop and fewer units when prices rise, reducing long-term volatility.
Power of Compounding: Earnings generated on your investments accumulate interest over time, leading to exponential portfolio growth.
Flexibility: You can start with minimal monthly amounts and scale your contributions as your income grows.
SIP Calculator FAQs
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly (monthly or quarterly) into mutual funds or investment portfolios, benefiting from rupee cost averaging and compound growth.
How is SIP return calculated?
SIP returns are calculated using the compound interest formula applied to each monthly installment based on your monthly contribution, duration, and expected return rate.
Is past performance a guarantee of future returns?
No. Past market performance is a historical indicator. Equity mutual fund returns fluctuate with market conditions.