SIP Calculator
Use this SIP calculator to estimate your investment returns over time.
What is SIP Investment?
SIP stands for Systematic Investment Plan. It is an investment method where you invest a fixed amount at regular intervals, usually monthly, into mutual funds. SIP investing helps build long-term wealth by encouraging disciplined investing and taking advantage of market fluctuations through rupee cost averaging.
How Does the SIP Calculator Work?
The SIP Calculator estimates the future value of your investments based on the monthly investment amount, expected annual rate of return, and investment duration. It uses a standard financial formula to calculate the compounded growth of your monthly contributions over time.
This calculator also provides a visual pie chart that shows the comparison between the total invested amount and the gains earned, helping you understand how compounding impacts your investments.
Why Use a SIP Calculator?
A SIP calculator helps investors plan their financial goals more effectively. It allows you to experiment with different investment amounts and durations to see how small monthly investments can grow into a large corpus over time. This makes it easier to set realistic goals and stay invested for the long term.
SIP investments are suitable for long-term goals such as retirement planning, child education, or wealth creation. Using a SIP calculator before investing helps you make informed financial decisions.
Frequently Asked Questions
Is SIP investment safe?
SIP investments are subject to market risks as they are linked to mutual funds. However, investing through SIP helps reduce risk over time by spreading investments across different market cycles.
Can I change my SIP amount later?
Yes, most mutual fund platforms allow you to increase, decrease, pause, or stop your SIP investment at any time depending on your financial situation.
Is this SIP Calculator free to use?
Yes, this SIP calculator is completely free and can be used multiple times without any registration.
Are SIP returns guaranteed?
No, SIP returns are not guaranteed. The returns shown by this calculator are estimates based on the expected rate of return and actual market performance may vary.