SIP / recurring investment calculator
Estimate your future wealth from Systematic Investment Plans (SIP) in mutual funds. By entering your monthly investment, expected return rate, and time period, you can project the maturity value and wealth gain from compounding. This tool helps you visualize long-term investment goals without transmitting financial data.
✨ Pro Tips for Best Results
- Start Early: Starting a SIP just 5 years earlier can nearly double your final maturity corpus due to the power of compounding.
- Step-up SIP: Increasing your monthly investment by just 10% every year can lead to a significantly larger wealth gain over time.
- Stay Disciplined: SIPs work best when you continue investing during market downturns, as you buy more units at lower prices (Rupee Cost Averaging).
SIP vs. Lump Sum: Which is right for you?
A SIP is ideal for regular earners who want to build wealth without timing the market. It averages out the cost of purchase over time. A Lump Sum investment is better when you have a large windfall (like a bonus) and the market is undervalued. For most long-term goals, a combination of both works best, but SIP remains the most disciplined choice for consistent growth.
How SIP returns are calculated
A Systematic Investment Plan (SIP) lets you invest a fixed amount into a mutual fund every month. Returns compound monthly using the formula FV = P × ((1 + r)n − 1) / r × (1 + r), where P is the monthly investment, r is the monthly rate of return (annual rate ÷ 12 ÷ 100), and n is the total number of months.
The power of SIP comes from rupee cost averaging and compounding. When markets fall, your fixed investment buys more units; when they rise, you buy fewer — averaging your cost over time and reducing timing risk. Even modest monthly amounts grow substantially over long horizons: ₹5,000/month at 12% annualised return for 20 years grows to roughly ₹49 lakh, against a principal of just ₹12 lakh. The calculator assumes a constant annual return rate, which mutual funds don't guarantee — real returns fluctuate, and past performance is not a guarantee of future results. Use this as a planning guide, not a prediction.