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SIP Calculator
Calculate your Systematic Investment Plan returns
Did you know? Investing ₹25,000/month for 10 years at 12% can grow to over ₹58 Lakhs!
About SIP Calculator
A Systematic Investment Plan (SIP) is a disciplined way of investing in mutual funds. It allows you to invest a fixed amount at regular intervals (daily, weekly, or monthly). This approach helps in averaging out the cost of investment and harnessing the power of compounding.
How it works?
M = P × ({[1 + i]^n - 1} / i) × (1 + i)- M = Maturity Amount
- P = Monthly Investment Amount
- i = Monthly Interest Rate (Annual Rate / 12 / 100)
- n = Total Number of Months
Key Benefits
Cost Averaging: You buy more units when the market is low and fewer when it's high, lowering your average cost per unit.
Power of Compounding: Investing early and regularly allows your returns to generate further returns over time.
Disciplined Savings: Automating your investments ensures you save first and spend later, building financial discipline.
Flexibility: You can start with as little as 500/month and increase your investment as your income grows.
Frequently Asked Questions
How does SIP differ from Lumpsum?
In SIP, you invest small amounts regularly, whereas in Lumpsum, you invest a large amount at once. SIP reduces market timing risk.
Can I stop my SIP anytime?
Yes, SIPs are flexible. You can pause or stop them anytime without penalty, though exit loads may apply if you redeem units early.
What is the best date for SIP?
There is no 'best' date. However, scheduling it shortly after your salary credit date ensures you invest before spending.
Can I increase my SIP amount later?
Yes, you can use a 'Step-up SIP' to automatically increase contributions annually, or simply start a fresh SIP with the additional amount.