Calculate SIP returns for systematic investment plans
A Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds, allowing investors to invest small amounts periodically instead of as a lump-sum. The frequency of investment is usually weekly, monthly or quarterly.
The calculator uses the future value formula FV = P × [((1+i)^n − 1) / i] × (1+i), where P is the monthly amount, i is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. For ₹5,000 a month at 12% for 10 years, you invest ₹6,00,000 and the projected value is about ₹11.62 lakh.
No. Returns on SIPs in mutual funds depend on market performance and can be lower than expected or even negative. The calculator assumes a constant annual return that you enter, so the result is only a projection, not a promise. Try several rates, such as 8%, 10% and 12%, to see a range of outcomes.
At an assumed 12% annual return, ₹5,000 a month for 15 years grows to about ₹25.23 lakh from ₹9,00,000 invested. Actual mutual fund returns vary from year to year and are not guaranteed, so use the calculator to test lower assumptions as well.
A SIP invests a fixed amount at regular intervals, usually monthly, while a lump sum invests the full amount at once. SIPs spread your buying across market highs and lows and suit regular income. A lump sum has more time in the market if invested early. This calculator projects the SIP case only.
No. It shows the nominal projected value based on your assumed return. Inflation reduces what the money buys, and taxes on gains and fund expense ratios can reduce your net return. Enter a return rate after allowing for these, or compare the result with your inflation-adjusted goal.
An RD (recurring deposit) is a bank deposit with a fixed interest rate, so its maturity value is known in advance. A SIP invests in market-linked mutual funds, so the value can rise or fall. Both involve regular monthly amounts. Compare them using the SIP and RD calculators with assumed rates.
Rupee Cost Averaging means you invest a fixed sum at regular intervals. When markets fall, you get more units, and when they rise, you get fewer units. Over time, your average cost per unit reduces, smoothing out volatility.
Yes, you can pause, stop, or edit the SIP amount anytime without penalties, making it highly flexible compared to traditional saving deposits.
While returns are not guaranteed, historical equity mutual funds in India have generally returned between 12% and 15% annually over a 7+ year period.
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