SIP Calculator
Estimate your Systematic Investment Plan (SIP) returns and total corpus growth. See the power of compounding with a detailed year-by-year breakdown.
How to use the SIP Calculator
Using this free SIP calculator is simple. Enter your monthly investment amount, expected annual return rate, and investment period (in years). Click Calculate Returns to see your total corpus, invested amount, and estimated returns.
You can also view a detailed year-by-year breakdown that shows how your investment grows over time, highlighting the power of compounding in long-term investments.
What this calculator shows you
- ✓Total corpus at maturity — The final value of your investment after the investment period.
- ✓Total amount invested — The sum of all your monthly investments over the tenure.
- ✓Estimated returns — The total profit earned from your investments through compounding.
- ✓Investment vs Returns breakdown — Visual representation of how much of your corpus is invested vs returns.
- ✓Year-by-year growth — Detailed breakdown showing how your investment grows each year.
How is SIP return calculated?
SIP returns are calculated using the compound interest formula for recurring investments. The formula used is:
Where:
• P = Monthly investment amount
• r = Monthly return rate (Annual rate ÷ 12 ÷ 100)
• n = Number of months invested
The formula assumes returns are reinvested monthly, which is how mutual fund SIPs work. This is known as the power of compounding.
Benefits of Systematic Investment Plans (SIP)
- ★Rupee Cost Averaging — Buy more units when prices are low and fewer when prices are high, averaging your purchase cost.
- ★Power of Compounding — Earn returns on your returns, creating a snowball effect that grows your wealth exponentially.
- ★Disciplined Investing — Automated monthly investments help build a savings habit and reduce emotional decision-making.
- ★Flexibility — Start with any amount and increase or decrease your investment as your financial situation changes.
- ★Long-term Wealth Creation — SIPs are ideal for achieving long-term financial goals like retirement, education, or buying a home.