SIP Calculator

Category: Investment
- June 04, 2025
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Calculate the future value of your Systematic Investment Plan (SIP) investments. Plan your wealth creation journey with detailed projections, compare different investment scenarios, and understand the power of compounding returns over time.

Investment Parameters

₹
Minimum ₹100 per month
Duration of your investment
%
Historical equity returns: 10-15% p.a.
%
Average inflation in India: 4-7%

Advanced Settings

Annual increase in SIP amount
₹
Current mutual fund portfolio value
₹
Leave blank for projection only
%
LTCG: 10% above ₹1 lakh

Comparison & Analysis

Portfolio Optimization

Conservative Aggressive
Moderate (70%)

Understanding SIP Investments

Systematic Investment Plan (SIP) is a disciplined approach to investing where you invest a fixed amount regularly in mutual funds. It harnesses the power of compounding and rupee cost averaging to create wealth over the long term.

Benefits of SIP
  • Rupee Cost Averaging: Buy more units when markets are low, fewer when high
  • Power of Compounding: Your returns generate returns over time
  • Disciplined Investing: Regular investment builds good financial habits
  • Flexibility: Start with small amounts, increase or pause as needed
  • Market Timing: No need to time the market entry/exit
  • Affordability: Start with as low as ₹500 per month
SIP vs Lumpsum Investment
  • Risk Distribution: SIP spreads investment risk over time
  • Market Volatility: SIP benefits from market fluctuations
  • Cash Flow: SIP suits regular income earners better
  • Investment Amount: Lumpsum requires large initial capital
  • Returns: Both can be effective based on market conditions
Types of SIP
  • Regular SIP: Fixed amount invested at regular intervals
  • Step-up SIP: Investment amount increases annually
  • Flexible SIP: Vary investment amount based on cash flow
  • Trigger SIP: Activate based on market conditions
  • Perpetual SIP: No end date, continues indefinitely
Tax Implications
  • Equity Mutual Funds: LTCG 10% above ₹1 lakh annually
  • Debt Mutual Funds: LTCG 20% with indexation benefit
  • ELSS Funds: Tax deduction under 80C, 3-year lock-in
  • Dividend: Tax-free in hands of investors
  • Short-term: Added to income, taxed as per slab
Important Considerations
  • Investment Horizon: Minimum 5+ years for equity funds
  • Goal-based Investing: Align investments with financial goals
  • Fund Selection: Choose based on risk profile and goals
  • Review Regularly: Monitor performance annually
  • Stay Disciplined: Continue SIP even during market downturns

Disclaimer: This calculator provides estimates based on assumptions and should not be considered as investment advice. Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. Please read all scheme-related documents carefully before investing. Consult your financial advisor for personalized investment advice.

What Is a SIP Calculator?

A SIP (Systematic Investment Plan) Calculator is a Financial planning helper that estimates the future value of your recurring investments in mutual funds. It helps individuals make informed decisions by showing how regular contributions grow over time through compounding and consistent investing.

This future value tool offers a projection of portfolio growth based on your monthly contribution, expected rate of return, duration, inflation rate, and Other settings like step-up SIPs or equity allocation preferences.

Compound SIP Formula:
\[ FV = P \times \frac{(1 + r)^n - 1}{r} \times (1 + r) \]
Where:
- FV = Future Value
- P = SIP Amount per period
- r = Expected rate of return per period
- n = Total number of payments

How to Use the SIP Calculator

Using the SIP Calculator is straightforward. Here are the steps to follow:

  • Enter your monthly SIP amount (minimum ₹100).
  • Set your investment period in years or months.
  • Input the expected annual return percentage.
  • Optionally, add inflation rate, existing investment, or target goal.
  • Use the advanced options to define SIP frequency, step-up percentage, and asset allocation.
  • Click “Calculate SIP Returns” to view the results.

The calculator will display a complete financial forecast including:

  • Total invested amount
  • Maturity value
  • Inflation-adjusted returns
  • Tax impact on capital gains
  • Investment growth chart
  • Goal achievement status

Why This Tool Is Useful

This SIP calculator acts as a compound earnings calculator that helps users visualize their future investment value. Whether you're planning for Retirement, a child’s education, or buying a house, this calculator enables:

  • Clear understanding of how your money grows with time
  • Comparison of SIP vs lumpsum investment outcomes
  • Insight into the impact of inflation on real returns
  • Flexible planning by adjusting SIPs, returns, and goals
  • Portfolio growth analysis with suggested asset allocation

Frequently Asked Questions (FAQ)

What is SIP?

SIP stands for Systematic Investment Plan. It’s a method of investing a fixed amount regularly in mutual funds to build long-term wealth.

How is the maturity amount calculated?

The maturity amount is calculated using a compound interest formula, considering your SIP amount, return rate, and time period.

What return rate should I assume?

Typical equity mutual fund returns range between 10% to 15% annually. Use a conservative estimate for better planning.

How does inflation affect my investments?

Inflation reduces the purchasing power of your returns. This calculator allows you to adjust for inflation, giving a real return estimate.

Is this tool useful for comparing investment options?

Yes, you can use it as a portfolio projection and ROI analysis tool. It allows comparisons between different scenarios and lumpsum investments.

Can I plan for specific goals?

Absolutely. You can set goals like retirement or education, and the calculator will estimate whether your current SIPs will help you reach them.

Final Thoughts

This SIP calculator is more than just an interest growth tool—it's an effective investment planning companion. It helps you visualize financial outcomes, adjust for inflation, analyze taxes, and make informed decisions. Whether you are just starting out or refining your strategy, this future value estimator can guide your journey to financial freedom.