Total Invested: ₹
Estimated Returns: ₹
Total Value: ₹
A SIP (Systematic Investment Plan) calculator helps you estimate the returns on your mutual fund investments made through regular monthly contributions. It uses the compound interest formula to show how your small investments can grow over time.
The formula used is:
FV = P × [(1 + r)n – 1] × (1 + r) / r
Where:
The calculator computes the total invested amount, estimated returns earned through compounding, and the final maturity value, giving you a clear picture of your SIP's growth.
A SIP or Systematic Investment Plan is a method of investing a fixed amount in mutual funds at regular intervals, typically monthly. It promotes disciplined investing and takes advantage of compounding over time.
SIPs are ideal for investors who prefer regular, smaller contributions and want to reduce the risk of market timing. Lump sum investments might be more beneficial in a bullish market if timed correctly, but SIPs offer better rupee-cost averaging over the long term.
Yes, you can stop your SIP whenever you wish by instructing your mutual fund provider. There are no penalties for stopping a SIP mid-way, although missing out on long-term compounding may affect your financial goals.
No, SIP returns are not guaranteed. They depend on the performance of the mutual fund you invest in. However, historically, SIPs in good funds have delivered healthy returns over long periods.
Missing a SIP payment occasionally doesn't lead to any penalties from the mutual fund house, but your bank may charge for a failed auto-debit. Repeated misses might cause your SIP to be cancelled.
Most mutual fund houses allow SIP investments starting from as low as ₹500 per month, making it accessible for everyone.
SIP is ideal for long-term wealth creation. For short-term goals, consider less volatile options like debt mutual funds or fixed deposits.
Yes, you can either start a new SIP with the revised amount or modify the existing one through your mutual fund portal or app.
Only SIPs in ELSS (Equity Linked Savings Scheme) mutual funds offer tax deductions under Section 80C up to ₹1.5 lakh per year.
SIP returns are calculated using the compound interest formula. SIP calculators estimate future value based on monthly investment, interest rate, and tenure.