SIP Calculator
Plan your investments with Systematic Investment Plans. Calculate expected returns with daily, weekly, monthly, quarterly, or yearly contributions. Understand the power of compound interest.
Equity: 12-15%, Balanced: 8-10%, Debt: 5-7%
Total Invested
₹12,00,000
Wealth Gained
₹11,23,391
Expected Value
₹23,23,391
Total Return on Investment
93.6%
120 months of investing at 12.00% annual return
Investment Breakdown
Investment Growth Over Time
₹12,00,000
₹11,23,391
₹23,23,391
Power of SIP (Compound Interest)
If saved without investing:
₹12,00,000
With SIP (11% average):
₹23,23,391
Extra wealth created through compound interest: ₹11,23,391
What is a SIP?
A Systematic Investment Plan (SIP) is a method of investing a fixed amount at regular intervals (daily, weekly, monthly, quarterly, or yearly) into mutual funds. Instead of investing a lump sum, SIPs allow you to invest consistently, which helps you average out market volatility and benefit from compound growth.
Key Benefits of SIP
- Rupee-Cost Averaging: Buy more units when prices are low, fewer when high.
- Discipline: Automatic investments instill financial discipline.
- Low Entry: Start with as little as ₹500 or ₹1,000 per month.
- Compound Growth: Long-term investments benefit from exponential returns.
- Flexibility: Change or stop your SIP anytime.
- Tax Efficiency: ELSS funds through SIP offer tax benefits under 80C.
SIP vs Lump Sum Investment
| Factor | SIP | Lump Sum |
|---|---|---|
| Risk | Lower - spreads over time | Higher - all at once |
| Market Timing | Doesn't matter | Critical |
| Discipline | Enforced | Self-dependent |
| Returns | Steady over time | Variable |
Types of Mutual Funds for SIP
Equity Funds (Aggressive)
- Expected return: 12-15% p.a.
- Best for: 7+ year horizon
- Risk: High volatility
Balanced Funds (Moderate)
- Expected return: 8-10% p.a.
- Best for: 5-7 year horizon
- Risk: Moderate
Debt Funds (Conservative)
- Expected return: 5-7% p.a.
- Best for: 3-5 year horizon
- Risk: Low
ELSS (Tax-saving)
- Tax deduction: ₹1,50,000 (80C)
- Lock-in: 3 years
- Return: 12-14% p.a.
Getting Started with SIP
- Choose a fund: Based on your goals, risk appetite, and time horizon.
- Decide frequency: Monthly SIP is most popular.
- Set amount: Start small if needed; consistency matters more than amount.
- Open account: Through your bank, brokerage, or fund house app.
- Set auto-debit: Automate your SIP to ensure consistency.
- Review regularly: Rebalance if needed, but avoid emotional decisions.
Other Tools
Disclaimer: SIP calculations are based on assumed returns. Actual mutual fund returns vary based on market conditions, fund performance, and economic factors. Past performance does not guarantee future results. Please consult a financial advisor before investing.