SIP Calculator
SIP calculator.
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Enter values and click Calculate
🧮 SIP Future Value Formula
FV = P × [(1 + r)ⁿ - 1] / r × (1 + r)
Where: P = Monthly investment amount, r = Monthly rate of return (annual rate / 12), n = Total number of months
Frequently Asked Questions
What is SIP and how does it work?
SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds. It leverages rupee cost averaging — you buy more units when prices are low and fewer when high, reducing overall cost per unit over time.
How much should I invest in SIP monthly?
A common guideline is to invest 20-30% of your monthly income. Use the 50-30-20 rule: 50% needs, 30% wants, 20% savings/investments. Start with what you can and increase by 10% annually (step-up SIP).
What returns can I expect from SIP?
Historical equity mutual fund returns in India average 12-15% annually over 10+ years. However, returns are not guaranteed and depend on market conditions. Debt funds typically offer 6-8%.
Is SIP better than lump sum investing?
SIP is better for regular income earners as it averages out market volatility. Lump sum can outperform if invested when markets are low. For most people, SIP offers disciplined, stress-free investing.
Can I stop or modify my SIP anytime?
Yes, SIPs are flexible. You can pause, stop, increase, or decrease your SIP amount at any time without penalty. There's no lock-in unless investing in ELSS (3-year lock-in).
What is step-up SIP?
Step-up SIP automatically increases your investment amount by a fixed percentage (usually 10%) every year. This significantly boosts your final corpus by leveraging salary increments.