SIP Calculator

What is SIP?

A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly in mutual funds. It's like a recurring deposit but in market-linked instruments, offering potential for higher returns.

How to Use This Calculator

Enter your monthly investment amount, expected annual return rate, and investment period in years. The calculator shows your invested amount, estimated returns, and total value at maturity.

SIP Formula

FV = P × [(1 + r)^n - 1] / r × (1 + r)

Where:
FV = Future Value
P = Monthly investment
r = Monthly return rate
n = Number of payments

Benefits of SIP

• Rupee cost averaging - buy more units when prices are low
• Power of compounding over long periods
• Disciplined investing habit
• Flexibility to start/stop/modify

FAQ

Is SIP better than lump sum investment?
SIP reduces timing risk and is ideal for beginners. However, if you have a large amount available, lump sum may perform better in rising markets.