SIP Calculator
Calculate expected maturity wealth, total invested capital, and estimated capital gains from systematic monthly investments.
Calculate your expected wealth growth from systematic monthly investments (SIP).
Formula & Method
The SIP calculation uses monthly compounding for periodic contributions:
- Maturity Value:
M = P × [((1 + i)^n - 1) ÷ i] × (1 + i) - P: Monthly investment amount
- i: Periodic monthly rate (
Annual Rate ÷ 1200) - n: Total monthly contributions (
Years × 12)
Worked Example
For a monthly SIP of $10,000 at an expected annual rate of 12% for 10 years (120 months):
- Total Invested:
$10,000 × 120 = $1,200,000 - Maturity Value:
≈ $2,323,391 - Estimated Returns:
$2,323,391 - $1,200,000 = $1,123,391
[!NOTE] All projections are illustrative and assume a constant rate of return. Actual investment returns vary based on market conditions.
Frequently Asked Questions
What is a Systematic Investment Plan (SIP)?+
A Systematic Investment Plan (SIP) allows you to invest a fixed sum at regular monthly intervals into mutual funds or investment portfolios, benefiting from rupee-cost averaging and compounding over time.
How does the SIP Calculator work?+
The calculator uses the standard monthly compounding formula M = P × [((1 + i)^n - 1) / i] × (1 + i), where P is your monthly contribution, i is the monthly interest rate, and n is total months.
Are SIP returns guaranteed?+
No. SIP calculations provide estimated projections based on an assumed annual return rate. Actual market returns fluctuate over time.