SIP Calculator

How SIP wealth is estimated

A Systematic Investment Plan (SIP) means you invest the same amount every month. This calculator treats each payment as occurring at the beginning of the month, which matches how many mutual fund SIPs operate and uses the standard future-value-of-annuity-due formula. The monthly rate is the annual return divided by 12; the number of periods is years × 12.

The formula used is: M = P × ([(1 + r)ⁿ − 1] / r) × (1 + r), where P is monthly investment, r is the monthly rate, and n is the number of months. Expected return is not guaranteed — markets move up and down. Use 10–12% only as a long-term equity illustration; debt funds might be closer to 6–8%. Fees (expense ratio), tax on redemption, and exit loads are not modeled here.

Example: ₹5,000/month for 10 years at 12% annualized implies roughly ₹6 lakh invested and a materially higher corpus than keeping cash — the exact numbers update live as you drag the sliders. Starting early matters: the same monthly amount over 20 years typically dominates a late start because compounding has more cycles.

Tips: Increase SIP when income rises, review asset allocation yearly, and avoid stopping during downturns if your goal is far away. Use this tool to compare scenarios (higher SIP vs longer horizon) before you commit on paper — then invest through a SEBI-registered platform.