Free SIP Calculator
Calculate the future value of your Systematic Investment Plan (SIP) investments. A SIP calculator helps you determine the wealth gain and expected returns for your monthly mutual fund investments. This tool provides a clear breakdown of your invested amount versus your estimated returns over your chosen time period.
What is a SIP?
A Systematic Investment Plan (SIP) is a facility offered by mutual funds to investors to invest in a disciplined manner. It allows an investor to invest a fixed amount of money at pre-defined intervals in the selected mutual fund scheme. SIPs help in averaging out the cost of investment and utilizing the power of compounding.
How to use this SIP Calculator
Using our SIP calculator is simple and takes just a few seconds:
- Monthly Investment: Enter the amount you plan to invest every month.
- Expected Return Rate (p.a): Enter the annual rate of return you expect from your investment. Historically, equity mutual funds have returned around 10-14% over the long term.
- Time Period: Specify the duration of your investment in either years or months. The longer you stay invested, the more you benefit from compounding.
- View Results: The calculator instantly displays your total invested amount, your estimated returns, and the final total value of your investment.
Benefits of SIPs
- Disciplined Investing: Automates your investments, ensuring you save regularly regardless of market conditions.
- Rupee Cost Averaging: Because you invest a fixed amount regularly, you buy more units when the market is low and fewer units when the market is high, averaging out your cost per unit.
- Power of Compounding: Returns generated on your investments are reinvested, meaning you earn returns on your returns. The earlier you start, the greater the compounding effect.
- Convenience: You can start a SIP with an amount as low as ₹100 or ₹500, making it accessible for everyone.
