SIP Calculator
Calculate future wealth from systematic mutual fund investments
Total Invested
₹6,00,000
Principal amount
Wealth Gained
₹5,32,769
Estimated returns
Total Future Value
₹11,32,769
Invested + Returns
Investment Breakdown
SIP uses the power of compounding and rupee cost averaging. The formula M = P × [((1 + i)n − 1) / i] × (1 + i) assumes investments are made at the beginning of each month. Even small, regular investments can grow substantially over long periods thanks to the compounding effect.
Understanding SIP Investments
The SIP Formula
M = P × [((1 + i)n − 1) / i] × (1 + i)
where P = monthly investment, i = monthly return rate (annual ÷ 12), n = total months. The (1 + i) factor accounts for investing at the beginning of each month.
Power of Compounding
Compounding allows your investments to generate earnings, which are then reinvested to generate their own earnings. Over long periods, this creates exponential growth — often called the 8th wonder of the world.
Rupee Cost Averaging
By investing a fixed amount regularly, you buy more units when prices are low and fewer when prices are high. This averages out your cost per unit over time, reducing the impact of market volatility.
💡 SIP Investment Tips
- Start early — Even ₹1,000/month invested at 12% for 30 years grows to over ₹35 lakh. Waiting 5 years reduces the final corpus by nearly half
- Increase SIP amount annually — A 10% yearly increase in your SIP amount (step-up SIP) can dramatically boost your final corpus
- Stay invested through volatility — Market downturns are buying opportunities. Continuing your SIP during bear markets maximizes rupee cost averaging
- 10–15 year horizon — Historical equity mutual fund returns have averaged 12–15% over long periods, but short-term volatility is normal
- Diversify across funds — Spread your SIP across different fund categories (large cap, mid cap, debt) to balance risk and returns
- Review annually — Rebalance your portfolio once a year. Increase your SIP amount as your income grows
⚠️ Disclaimer: Past performance does not guarantee future returns. The calculations provided are estimates based on assumed rates of return. Actual mutual fund returns vary based on market conditions, fund management, and economic factors. Consult a SEBI-registered financial advisor before making investment decisions.