Use this easy and accurate SIP Calculator to estimate the future value of your monthly investments. It helps you understand how your small regular investments can grow into a large corpus over time through the power of compounding.
SIP Calculator
How This SIP Calculator Works
The SIP Calculator works on the compound interest formula used for mutual fund investments. As a result, it shows you the total investment amount, expected returns, and future value at the end of your chosen investment period.
Formula:
FV = P × ((1 + r)ⁿ – 1) / r × (1 + r)
Where:
- P = Monthly investment amount
- r = Monthly rate of return (annual rate ÷ 12 ÷ 100)
- n = Total number of months
By adjusting your SIP amount, expected rate of return, and duration, you can plan how much you need to invest each month. In this way, you can better understand how your regular investments will gradually help you reach your future financial goals.
Conclusion
A Systematic Investment Plan (SIP) is one of the most disciplined and efficient ways to invest regularly. Moreover, it allows you to invest a fixed amount every month and benefit from rupee cost averaging. As a result, you can build long-term wealth with consistency and minimal risk. Therefore, using this SIP Calculator helps you easily plan your financial goals and track your expected returns over time.
Frequently Asked Questions (FAQ)
Ans – The SIP Calculator helps you estimate the future value of your investments based on a fixed monthly contribution and an expected rate of return. Moreover, it allows you to plan your savings more effectively and stay on track to achieve your financial goals.
Ans – The calculator provides an estimated projection based on the compound interest formula. However, actual returns may vary depending on market performance.
Ans – You can start a SIP with as little as ₹500 per month. In fact, it’s an affordable and convenient way to begin your investment journey.
Ans – SIPs are subject to market risks since they invest in mutual funds, but they are one of the best long-term wealth-building options.
Ans – Yes, you can increase, decrease, or stop your SIP anytime according to your financial needs.
SIP and Mutual Funds – A Smart Way to Invest Regularly
A Systematic Investment Plan (SIP) allows investors to invest small, fixed amounts at regular intervals and build wealth over time. According to the SEBI Investor Education – Understanding Mutual Funds page, SIPs make investing convenient and disciplined by automating the investment process.
Overall, it’s one of the most reliable ways to grow your savings steadily under a strong regulatory framework.