SIP Calculator - Calculate Your Mutual Fund SIP Returns

What is SIP (Systematic Investment Plan)?

A Systematic Investment Plan (SIP) is a disciplined approach to investing in mutual funds where you invest a fixed amount regularly (monthly/quarterly) instead of investing a lump sum. SIP helps you benefit from rupee cost averaging and the power of compounding.

How Does SIP Work?

When you start a SIP, a fixed amount is automatically debited from your bank account on a specific date every month and invested in your chosen mutual fund scheme. You get units of the mutual fund scheme based on the prevailing Net Asset Value (NAV).

Benefits of SIP Investment

• Rupee Cost Averaging: Buy more units when markets are low and fewer when high
• Power of Compounding: Your returns also earn returns over time
• Disciplined Investing: Automated monthly investments build discipline
• Flexibility: Start with as low as ₹500 per month
• Convenience: No need to time the market

SIP Calculator Formula

The SIP calculator uses the following formula to calculate maturity amount:

M = P × {[(1 + r)^n - 1] / r} × (1 + r)

Where:

• M = Maturity Amount
• P = Monthly SIP Amount
• r = Monthly Rate of Return (Annual Rate / 12 / 100)
• n = Total Number of Months (Years × 12)