A Systematic Investment Plan (SIP) is a method of investing a fixed amount at regular intervals — typically monthly — into a mutual fund or investment vehicle. It leverages rupee-cost averaging and the power of compounding to build wealth over time.

What formula does this calculator use?

SIP maturity value is calculated using the formula: M = P × [(1 + r)^n − 1] / r × (1 + r), where P is the monthly contribution, r is the monthly interest rate (annual rate / 12 / 100), and n is the total number of months. Each monthly installment compounds for the remaining period.

Is the return rate guaranteed?

No. The expected annual return you enter is an assumption, not a guarantee. Actual mutual fund returns vary based on market conditions, fund type, and economic factors. Equity funds historically average 10–14% per year over long periods, but returns are not linear.

How is total invested different from maturity value?

Total invested is simply your monthly amount multiplied by the number of months — the money you actually put in. Maturity value is the projected final corpus including compound returns. The difference between the two is your estimated wealth gain.

Does this account for inflation or taxes?

No. This calculator shows nominal pre-tax, pre-inflation returns. In practice, long-term capital gains on equity mutual funds may be taxed, and inflation erodes purchasing power. To estimate real returns, subtract the expected inflation rate from your expected annual return before calculating.

What is a good monthly SIP amount to start with?

Any amount you can invest consistently is a good start. Even Rs 500 or $50 per month compounded over many years builds meaningful wealth. The key factors are the return rate and how long you stay invested, not just the amount.

SIP Calculator

Name: SIP Calculator
Availability: InStock
Author: Nham Vu

Enter your monthly SIP amount, expected annual return, and duration to instantly see your maturity value and total returns.

SIP Details

Currency Symbol

Monthly Investment

Expected Annual Return

Investment Duration

years

Enter your SIP details and click Calculate

Maturity value and year-by-year table will appear here

Maturity Value

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Total Invested

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Wealth Gained

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Return Multiple

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Invested Returns

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Year-by-Year Breakdown

Year	Invested	Returns	Corpus

Summary