SIP Calculator - Systematic Investment Plan Calculator

SIP Calculator - Smaller Donut Chart on Mobile
₹5,000
10%
5Yr
Invested amount ₹0
Est. returns ₹0
Total value ₹0
SIP Calculator

What is an SIP Calculator?

A Systematic Investment Plan (SIP) calculator is an online tool that helps you estimate the maturity amount of your investments based on a fixed contribution, expected return rate, and investment duration.

It eliminates the complexity of manual calculations, making financial planning quick and convenient.

How Does the SIP Calculator Work?

A SIP plan calculator works on the following formula:

M = P × ({[1 + i]^n – 1} / i) × (1 + i)

In this formula:

  • M: The amount you receive upon maturity.
  • P: The amount you invest at regular intervals.
  • n: The number of payments you have made.
  • i: The periodic rate of interest.

Simply input your monthly investment amount, expected annual return rate, and the investment duration to get instant results.

SIP Calculation Example

Investing ₹5,000 monthly in a SIP for 10 years at an annual return of 12% yields the following result:

Formula:
M = P × ((1 + i)n - 1) / i × (1 + i)
Inputs:
  • Monthly SIP (P): ₹5,000
  • Annual Interest Rate: 12%
  • Monthly Interest Rate (i): 12% ÷ 12 = 0.01
  • Investment Duration (n): 10 years × 12 = 120 months

Step-by-Step Calculation:

  • Calculate (1 + i)n: (1 + 0.01)120 ≈ 3.3004
  • Subtract 1: 3.3004 - 1 = 2.3004
  • Divide by i: 2.3004 ÷ 0.01 = 230.04
  • Multiply by (1 + i): 230.04 × 1.01 = 232.34
  • Multiply by P: ₹5,000 × 232.34 = ₹11,61,695
Result:

After 10 years of investing ₹5,000 monthly, the maturity amount will be ₹11,61,695.

Note: The rate of return on investments can vary depending on market conditions. Always consider the impact of fluctuating interest rates while planning your investments.
How to Use the SIP Calculator

How to Use the SIP Calculator?

Using the SIP calculator is incredibly straightforward. Follow these steps to calculate your SIP returns:

  • Input the amount you plan to invest regularly each month.
  • Enter the rate of return you expect from your investments. This is typically based on historical performance or market expectations.
  • Choose how long you plan to continue your SIP investments. This can range from a few years to several decades, depending on your financial goals.
  • Once all the details are entered, hit the calculate button to view your results.

The calculator will instantly display:

  • The sum of all your monthly SIP contributions over the chosen duration.
  • The earnings generated from your investments.
  • The combined value of your invested amount and the returns.
SIP Benefits

Benefits of SIPs

Systematic Investment Plans are one of the most effective and disciplined ways to build wealth over time. Here’s why SIPs are a popular choice among investors:

💹

Power of Compounding SIPs leverage the power of compounding, meaning your returns are reinvested to generate additional earnings. Over time, this compounding effect leads to exponential growth in your investments.

📉

Rupee Cost Averaging SIPs help reduce the impact of market volatility. By investing a fixed amount regularly, you buy more units when prices are low and fewer units when prices are high, averaging out the cost of your investments.

⚙️

Convenient and Flexible SIPs are highly flexible, allowing you to start with small amounts and gradually increase your contributions as your income grows. You can pause or modify your SIP anytime based on your financial situation.

🎯

Achieve Financial Goals SIPs are ideal for meeting long-term financial objectives such as funding your child’s education, purchasing a dream home, or planning for retirement. They encourage disciplined saving and consistent investment.