SIP CALCULATOR
Calculate Your SIP Returns
SIP Calculator
An SIP (Systematic Investment Plan) calculator is a financial tool that helps you estimate the potential returns on your SIP investments over a period of time. It simplifies the process of calculating how much wealth you can accumulate by investing a fixed amount regularly in mutual funds.
SIP calculators are widely used by investors to plan their investments and understand how small, consistent contributions can grow over time due to the power of compounding and rupee cost averaging.
Formula Used by SIP Calculator
Most SIP calculators work based on the following formula:
M=P×( (1+r) n−1/r)×(1+r)
Where:
M = Maturity amount (the final amount you will receive)
P = SIP amount (monthly contribution)
r = Monthly rate of return (annual rate ÷ 12 ÷ 100)
n = Total number of SIP payments (in months)
How to Use an SIP Calculator
Enter the Monthly Investment Amount (SIP Amount):
Input the fixed amount you plan to invest regularly (e.g., 5000₹ per month).
Choose the Investment Duration:
Specify how long you plan to invest (e.g., 5 years, 10 years).
Set the Expected Rate of Return:
Estimate the annual return you expect (e.g., 10% per annum).
Calculate:
Click the "Calculate" button to see the projected maturity value of your investment.
Example Calculation
SIP Amount:
5000₹
Investment Duration:
10 years
Expected Return Rate:
12% annually
👉 Using these inputs, an SIP calculator would show your total investment and how much it could grow over time—helping you plan for your financial goals.
