A Systematic Investment Plan (SIP) is one of the most popular ways to invest in mutual funds in India. Instead of investing a large lump sum, you invest a fixed amount every month, which helps average out market volatility through rupee cost averaging. Over time, even modest monthly contributions can grow into a substantial corpus thanks to the power of compounding.
Our SIP calculator helps you estimate how much wealth you can build based on your monthly investment, expected annual return, and investment duration. The calculator uses the standard future value formula for recurring investments, accounting for monthly compounding. You simply enter how much you plan to invest each month, the rate of return you expect from your mutual fund, and the number of years you intend to stay invested.
For example, if you invest ₹5,000 per month for 10 years at an expected return of 12% per annum, your total investment would be ₹6,00,000. However, due to compounding, your estimated corpus could be significantly higher. The calculator breaks down your total investment versus estimated returns and displays a visual chart so you can see how much of your final amount comes from your own contributions versus market gains.
SIP investing is ideal for salaried individuals, first-time investors, and anyone building long-term goals such as retirement, children's education, or buying a home. Remember that mutual fund returns are not guaranteed and actual results may vary based on market performance. Use this calculator for planning purposes and consult a financial advisor for personalized advice.