SIP Calculator
Calculate returns on Systematic Investment Plan for mutual funds.
SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds. It allows investors to buy units on a given date each month, enabling rupee cost averaging and disciplined investing.
SIP Formula
The future value of SIP is calculated using the compound interest formula for regular investments:
M = P × [(1+r)ⁿ - 1] / r × (1+r)
Where M = Maturity amount, P = Monthly investment, r = Monthly rate (annual%/12/100), n = Total months.
For example, investing ₹5,000 monthly at 12% for 10 years:
r = 12/12/100 = 0.01, n = 120 months
M = 5000 × [(1.01)¹²⁰ - 1] / 0.01 × 1.01 = ₹11,61,695
SIP Returns Table (₹5,000/month at 12%)
| Years | Invested | Returns | Maturity |
|---|---|---|---|
| 5 | ₹3,00,000 | ₹1,12,432 | ₹4,12,432 |
| 10 | ₹6,00,000 | ₹5,61,695 | ₹11,61,695 |
| 15 | ₹9,00,000 | ₹16,22,880 | ₹25,22,880 |
| 20 | ₹12,00,000 | ₹37,95,741 | ₹49,95,741 |
SIP is ideal for long-term wealth creation as it benefits from the power of compounding. Starting early and investing consistently can significantly grow your wealth. For lump sum investments, see our Lumpsum Calculator.