SIP Calculator

A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month. Instead of timing the market with a lump sum, you invest consistently — capturing market highs and lows over time through a principle called rupee cost averaging.

SIP Return Formula

M = P × ((1 + r)ⁿ − 1) / r × (1 + r)

Where M is the maturity amount, P is the monthly SIP amount, r is the monthly rate (annual rate ÷ 12 ÷ 100), and n is the number of months.

The Power of Compounding

The longer you stay invested, the more dramatic the compounding effect. At 12% annual returns, ₹5,000/month for 10 years grows to roughly ₹11.6 lakh invested — but a corpus of around ₹11.6 lakh... wait, let me recalculate. At 12% for 10 years with ₹5,000/month: invested = ₹6 lakh, corpus ≈ ₹11.6 lakh. For 20 years: invested = ₹12 lakh, corpus ≈ ₹49.9 lakh. The extra 10 years more than quadrupled the corpus from a doubled investment.

What Return Rate to Use?

Large-cap funds — Use 10–12% for conservative estimates.
Mid/small-cap funds — Use 12–15% for aggressive estimates.
Debt funds — Use 6–8% for low-risk projections.

SIP vs Lump Sum

Lump sum investing can outperform SIP in strongly bullish markets. SIP outperforms in volatile or falling markets because you buy more units when prices are low. For most investors who don't have a large sum ready, SIP is the practical and safer approach.

Frequently Asked Questions

Can I stop a SIP?

Yes. Open-ended mutual fund SIPs can be paused or stopped at any time with no penalty. Your existing units remain invested until you choose to redeem them.

Is SIP only for mutual funds?

Mostly yes. SIP is a mutual fund investment mechanism. You can do systematic investing in stocks directly via brokers, but the term SIP specifically refers to mutual fund systematic investments.