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SIP Calculator
Systematic Investment Plan — calculate your mutual fund returns
📈 SIP = Systematic Investment Plan • Start small, grow wealth over time
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Total invested
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Total returns (profit)
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Wealth gained
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Calculate your SIP investment returns instantly — fast, free, no signup
What is a SIP (Systematic Investment Plan)?
A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly in mutual funds. It allows you to build wealth over time through disciplined, periodic investments. SIPs help average out market volatility through rupee cost averaging and harness the power of compounding.
SIP Future Value Formula: FV = P × ((1+r)^n - 1) ÷ r × (1+r)
Where: P = Monthly investment | r = Monthly rate of return | n = Number of months
How to Use This SIP Calculator
- Monthly investment: Enter the amount you plan to invest each month
- Expected return: Enter the estimated annual return percentage (historical equity returns: 10-15%, debt: 6-8%)
- Investment period: Enter either years or months — both fields sync automatically
- Click "Calculate SIP Returns" to see your future value and detailed year-by-year growth
Understanding Your Results
- Future Value: Total corpus at the end of your investment period
- Total invested: Total amount you contributed over the period
- Total returns: Total profit earned on your investment
- Wealth gained: Returns generated through compounding
- XIRR: Extended Internal Rate of Return — the actual annualized return
- Yearly breakdown: Shows how your wealth grows year by year
Benefits of Systematic Investment Plans
- Rupee Cost Averaging: Buy more units when markets are down, fewer when up
- Power of Compounding: Returns generate further returns over time
- Disciplined Investing: Regular investments build financial discipline
- Flexible: Start with as little as £500 per month
- Convenient: Automatic deductions from your bank account
- Long-term Wealth Creation: Ideal for retirement, children's education, and financial goals
Factors That Affect SIP Returns
- Investment amount: Higher monthly investments lead to larger corpus
- Investment duration: Longer periods benefit more from compounding
- Rate of return: Higher returns increase final corpus exponentially
- Market conditions: Equity SIPs are subject to market risks
- Fund selection: Choose funds based on risk profile and goals
SIP Investment Strategies
- Start Early: Starting at 25 vs 35 can double your retirement corpus
- Increase SIP Annually: Step-up SIPs help beat inflation and build more wealth
- Diversify: Mix equity, debt, and hybrid funds based on risk appetite
- Stay Invested: Avoid stopping SIPs during market downturns
- Review Periodically: Monitor fund performance and rebalance if needed
Frequently Asked Questions
- What is the minimum SIP amount? — Most mutual funds allow SIPs starting from £500 per month.
- Can I stop or modify my SIP? — Yes, you can pause, increase, decrease, or stop SIPs anytime.
- Is SIP guaranteed returns? — No, SIPs in equity funds are market-linked and subject to risks.
- What is a good SIP return rate? — Historically, equity funds have given 10-15% returns over long periods.
- Should I choose growth or dividend option? — Growth option reinvests returns for compounding; dividend option gives periodic payouts.
- What is step-up SIP? — Increasing your SIP amount periodically to match income growth and inflation.