Plan your monthly SIP investment. Enter how much you invest every month, the expected return and the number of years, and see your invested amount, estimated returns and total maturity value.
1. Enter the amount you invest every month. 2. Enter the expected return per year. 3. Enter the number of years and click Calculate SIP Returns.
SIP stands for Systematic Investment Plan. It is a way to invest a fixed amount of money every month in a mutual fund, instead of investing one big amount at once. A SIP calculator shows what your small monthly investments can grow into over many years. Enter the monthly amount, the expected return per year and the number of years, and this free SIP calculator shows the total amount you invest, the estimated returns and the maturity value at the end.
SIPs are popular because they make investing easy and regular. You do not need a large amount of money to start: many funds accept as little as 500 per month. Investing every month also spreads your purchases across good and bad markets, so you buy more units when prices are low and fewer when prices are high. Over a long time, this habit, plus the power of compounding, can turn small monthly amounts into a large sum. That is why SIPs are the first choice for people saving for a child's education, a house, or retirement.
Suppose you invest 10,000 every month for 10 years at an expected return of 12 percent per year. You invest 10,000 times 120 months, which is 1,200,000 in total. This SIP calculator gives a maturity value of about 2,323,391. That means your estimated returns are about 1,123,391, which is almost as much as the amount you invested. The growth is not in a straight line: in the first years the fund grows slowly, but in the later years the returns on your earlier returns make the total grow much faster. That is the power of compounding at work.
The future value of a monthly SIP is calculated with this formula: FV = P x [((1 + r)^n - 1) / r] x (1 + r). Here P is the monthly investment, r is the monthly return (the yearly return divided by 12 and by 100), and n is the total number of monthly investments. For the example above, r is 12 divided by 1,200, which is 0.01, and n is 120. The last (1 + r) is there because each monthly investment is made at the start of the month, so it earns one extra month of return.
Start early, even with a small amount. A SIP of 2,000 started at age 25 can grow larger than a SIP of 5,000 started at age 35, because time matters more than the amount. Increase your SIP every year. If your salary rises, raise your SIP by 10 percent each year and the final value grows a lot. Stay invested in bad markets. Falling markets let your SIP buy more units cheaply, which helps when markets recover. Do not stop and start often. SIPs work best when they run without a break for many years. Remember the return is only an estimate. Mutual fund returns change every year, so use this calculator to plan, not to predict the exact final amount.
Suppose you invest 5,000 every month for 15 years at an expected return of 10 percent per year. You invest 5,000 times 180 months, which is 900,000 in total. This SIP calculator gives a maturity value of about 2,089,621, so your estimated returns are about 1,189,621 — more than the amount you invested. Compare this with a SIP of 1,000 per month for 5 years at 12 percent: you invest 60,000 and the value grows to about 82,486. The longer SIP wins by far, even though the monthly amount is only five times bigger, because 15 years of compounding beats 5 years.
Expecting the return to be fixed. Mutual fund returns change every year, so the calculator's result is an estimate, not a promise. Starting too late. Waiting five years to start can cost more than investing a bigger amount later, because compounding needs time. Stopping in a falling market. When markets fall, your SIP buys more units cheaply, so stopping then locks in the loss. Investing money you need soon. A SIP is for long-term goals; money you need next year belongs in a savings account. Choosing a fund by last year's return only. Last year's best fund is often not this year's best, so look at the fund's history, fees and risk, not one year alone.
Pro Tip: Increase your SIP by 10 percent every year when your salary rises. A step-up SIP can add lakhs to your final value without ever feeling like a burden.
Note: Mutual fund investments are subject to market risks. The returns shown here are estimates at the rate you enter; actual returns are not guaranteed.
What is a SIP? A SIP (Systematic Investment Plan) is a way to invest a fixed amount every month in a mutual fund. Your money buys fund units each month, and the value grows with the market over time.
How much should I invest in a SIP every month? Start with an amount you can afford every month without stress, even 500 or 1,000. Increase it as your income grows. The right amount depends on your goal and your income.
Are SIP returns guaranteed? No. Mutual funds invest in shares and bonds, so returns go up and down with the market. The return you enter here is only an assumption for planning.
What is a good return to assume for a SIP? Many people use 10 to 12 percent per year for long-term equity funds, but this is only a rough guide. Past returns do not guarantee future returns.
What happens if I miss a SIP payment? Most funds allow you to miss a payment without a fine, but the missed month does not buy units, so the final value is a little lower. Some banks may charge for a failed auto-debit, so keep enough balance in your account.
Is a SIP better than a fixed deposit? A fixed deposit gives a fixed, safe return. A SIP can give a higher return over a long time, but with more risk. The best choice depends on your goal, your time and how much risk you can accept.
Can I stop my SIP any time? Yes. You can pause or stop a SIP whenever you like, and the money already invested stays in the fund and keeps growing until you withdraw it.
What is the difference between a SIP and a lump sum investment? A SIP invests a small fixed amount every month, while a lump sum invests one large amount at once. A SIP spreads the risk over time, while a lump sum depends on the market on one single day.
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