SIP Calculator

What is a SIP?

A Systematic Investment Plan (SIP) is a way to invest a fixed amount in a mutual fund or index every month, regardless of market conditions. SIPs are popular in India because they automate disciplined investing, average out the cost of buying (rupee-cost averaging), and harness the power of compounding over years.

How this calculator works

The standard SIP future-value formula is:

FV = P × ((1 + r)^n − 1) / r × (1 + r)

• P = monthly investment
• r = monthly rate of return (annual rate ÷ 12 ÷ 100)
• n = number of monthly investments (years × 12)
• FV = future value of your SIP

What return rate to use

Long-run equity returns vary by market. As a starting point: India equity ~12%, US S&P 500 ~8-10%, developed Europe ~6-7%, Japan ~4-5%. These are inflation-unadjusted; subtract 3-5% for inflation. Use a more conservative rate (6-8%) if you're unsure or in a debt fund.

Important caveats

• Returns are not guaranteed. Past performance ≠ future performance.
• This calculator assumes a constant return — real markets vary year to year.
• Doesn't account for fund expense ratios (typically 0.5-2%).
• Doesn't account for taxes on capital gains.

Not financial advice. Consult a registered financial advisor for your specific situation.