About SIP Calculator

A Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds where investors can invest small amounts periodically instead of lump sums. Our SIP calculator helps you calculate:

• The future value of your SIP investments
• The total amount invested over time
• The wealth gained through compounding
• Year-by-year breakdown of your investment growth

How to use this calculator

1. Enter your monthly investment amount
2. Set the expected annual return rate
3. Specify the investment period in years
4. Optionally, set an annual step-up percentage to increase your monthly investment each year
5. Click "Calculate" to see your results

SIP Calculation Formula

M = P × ({[1 + r]^n - 1} / r) × (1 + r)

Where:

• M = Maturity Amount
• P = Monthly Investment
• r = Monthly Rate of Return (Annual Rate / 12 / 100)
• n = Number of Months

Benefits of SIP Investing

• Rupee Cost Averaging: By investing regularly, you buy more units when prices are low and fewer when prices are high, reducing the average cost per unit over time.
• Power of Compounding: The earlier you start, the more time your money has to grow.
• Disciplined Investing: SIPs help develop a habit of regular investing without timing the market.
• Flexibility: You can start with a small amount and increase it as your income grows.