SIP Calculator
Estimate the future value of your mutual fund investments. Enter your monthly Systematic Investment Plan (SIP) amount, expected return rate, and tenure to visualize the power of compounding.
Investment Plan
Wealth Breakdown
Yearly Wealth Accumulation
Year-by-year breakdown of your total investment and wealth growth.
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| Year | Amount Invested (Cumulative) | Expected Returns (Cumulative) | Total Expected Value |
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What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is a facility offered by mutual funds allowing investors to invest small amounts periodically (like monthly) instead of a lump sum. This helps in instilling financial discipline and building wealth over the long term.
How does compounding work in SIP?
When you invest through a SIP, your returns are calculated on a monthly compounding basis. The interest/returns earned in the first month get added to your principal for the second month, generating returns on the returns. Over long periods (10+ years), this compounding effect causes your wealth to grow exponentially.
Rupee Cost Averaging
SIPs inherently employ Rupee Cost Averaging. Since you invest a fixed amount regularly, you buy more units when the market is down and fewer units when the market is high, averaging out your cost per unit over time.
Frequently Asked Questions
M = P × ({[1 + i]^n - 1} / i) × (1 + i), where P is the monthly investment, i is the monthly interest rate, and n is the total number of months.