SIP Returns Calculator
Calculate the total returns on your SIP investments. See how much wealth you can create by investing systematically in mutual funds over different time periods.
Understanding SIP (Systematic Investment Plan)
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 without timing the market.
SIP Formula
M = P × [(1+r)ⁿ - 1] / r × (1+r)
Where: M = Maturity amount, P = Monthly investment, r = Monthly rate (annual%/12/100), n = Total number of months.
Example SIP Returns
| Monthly | Return | Period | Invested | Maturity | Gains |
|---|---|---|---|---|---|
| ₹15,000 | 12% | 20 years | ₹36,00,000 | ₹1,49,85,221 | ₹1,13,85,221 |
| ₹25,000 | 14% | 25 years | ₹75,00,000 | ₹5,75,62,392 | ₹5,00,62,392 |
Benefits of SIP Investing
- Rupee Cost Averaging: Buy more units when prices are low, fewer when high
- Disciplined Investing: Automatic monthly deductions enforce savings habit
- Power of Compounding: Returns on returns grow wealth exponentially over time
- Flexibility: Start with as low as ₹500, increase/pause/stop anytime
- No Market Timing: Removes emotional decision-making from investing
Frequently Asked Questions
What returns can I expect from SIP?
Historical equity mutual fund returns range from 10-15% annually over long periods. Debt funds return 6-8%. Actual returns vary based on market conditions and fund selection. Past performance doesn't guarantee future returns.
How does SIP return compare to FD?
SIP in equity funds historically delivers 12-15% returns vs. FD's 6-7%. However, SIP returns are market-linked and not guaranteed. SIP is better for long-term goals (5+ years), while FD suits short-term needs.