SIP Calculator
Systematic Investment Plan Calculator
See how small, regular investments can grow into significant wealth over time
Total Investment
₹8,05,000
Estimated Returns
₹15,23,456
Total Value
₹23,28,456
Annualized Returns
14.8%
| Year | Invested Amount | Returns | Total Value |
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What is SIP?
SIP (Systematic Investment Plan) is an investment strategy that allows you to invest a fixed amount regularly in mutual funds. Instead of making a lump sum investment, you invest smaller amounts at regular intervals (usually monthly).
Benefits of SIP
- Rupee Cost Averaging: You buy more units when prices are low and fewer when prices are high
- Discipline: Encourages regular investing habits
- Power of Compounding: Your returns generate more returns over time
- Flexibility: You can start with small amounts and increase gradually
- Convenience: Automated investments through ECS mandate
How SIP Works
When you invest through SIP, a fixed amount is deducted from your bank account at regular intervals and used to purchase units of a mutual fund scheme. The number of units you get depends on the fund’s Net Asset Value (NAV) on the day of investment.
Key Concepts
- Rupee Cost Averaging: SIP helps average out the purchase cost of mutual fund units over time
- Power of Compounding: Earnings are reinvested to generate their own earnings
- Step-Up SIP: Increasing your SIP amount annually to accelerate wealth creation
- NAV: Net Asset Value represents the per-unit value of the mutual fund scheme
Frequently Asked Questions
What is the ideal SIP amount to start with?
You can start a SIP with as low as ₹500 per month. The ideal amount depends on your financial goals, income, and expenses. It’s recommended to start with an amount you’re comfortable with and gradually increase it over time.
How does rupee cost averaging work in SIP?
Rupee cost averaging is a strategy where you invest a fixed amount regularly regardless of market conditions. When prices are high, your fixed investment buys fewer units. When prices are low, the same amount buys more units. This averages out the purchase cost over time.
Can I pause or stop my SIP?
Yes, most mutual funds allow you to pause or stop your SIP anytime. However, it’s generally recommended to continue your SIP through market cycles to benefit from rupee cost averaging.
What is a step-up SIP?
A step-up SIP allows you to increase your investment amount periodically (usually annually). For example, if you start with ₹5,000 per month and set a 10% step-up, your SIP will increase to ₹5,500 after one year. This helps accelerate wealth creation as your income grows.
SIP Calculator
Free SIP Calculator to estimate returns on your Systematic Investment Plan. Calculate wealth creation, maturity value, and monthly investment growth easily.