SIP Calculator
Calculate your SIP returns and plan wealth creation with our comprehensive SIP calculator. Includes visual charts and shareable results.
SIP Calculator
About This Calculator
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly in mutual funds. It's a disciplined approach to investing that helps in wealth creation through the power of compounding and rupee cost averaging.
Our SIP calculator helps you understand how your regular investments can grow over time, taking into account the expected annual returns and investment tenure.
SIP Formula:
M = P × ([1 + i]^n - 1} / i) × (1 + i)
Where:
- M: Maturity amount
- P: Monthly investment amount
- i: Monthly rate of return (annual rate ÷ 12)
- n: Total number of months
Benefits of SIP:
- Rupee Cost Averaging: Reduces impact of market volatility
- Power of Compounding: Exponential growth over time
- Disciplined Investing: Regular investment habit
- Flexibility: Start with small amounts
- Convenience: Automated investments
Features:
- Visual investment vs returns chart
- Detailed wealth gain analysis
- Shareable calculation links
- Monthly breakdown tracking
- Auto-calculation from shared URLs
Frequently Asked Questions
What is SIP?
SIP (Systematic Investment Plan) is a method of investing in mutual funds where you invest a fixed amount at regular intervals (usually monthly). It helps in building wealth through disciplined investing, rupee cost averaging, and the power of compounding over time.
How does SIP work?
In SIP, a fixed amount is automatically deducted from your bank account every month and invested in your chosen mutual fund. You get units based on the current NAV (Net Asset Value). When markets are down, you get more units, and when markets are up, you get fewer units - this is called rupee cost averaging.
What is the minimum amount to start SIP?
You can start SIP with as little as ₹100-500 per month in most mutual funds. Many equity mutual funds allow SIPs starting at ₹500, while debt funds and some index funds allow starting at ₹100. This makes SIP accessible to everyone regardless of income level.
What is the best SIP amount per month?
The ideal SIP amount depends on your financial goals, income, and expenses. A good rule of thumb is to invest at least 20% of your monthly income. For retirement planning, calculate your target corpus and work backwards to determine the monthly investment needed using our calculator.
Is SIP better than FD?
SIP in equity mutual funds has historically given higher returns (12-15% CAGR) compared to FDs (6-7%) over long periods (5+ years). However, SIP carries market risk while FDs offer guaranteed returns. For long-term wealth creation, SIP is generally better, but for short-term goals and capital preservation, FD is safer.
What is the average SIP return?
Historically, equity mutual funds in India have delivered average returns of 12-15% CAGR over long periods (10+ years). However, returns vary based on market conditions, fund selection, and investment duration. Past performance doesn't guarantee future returns, but disciplined SIP investing has consistently beaten inflation.
Can I withdraw SIP money anytime?
Yes, you can redeem your SIP investments anytime for open-ended mutual funds. However, some funds charge exit load (0.5-1%) if redeemed within a specific period (usually 1 year for equity funds). ELSS (tax-saving) funds have a 3-year lock-in period from each investment date.
How is SIP return calculated?
SIP returns are calculated using the XIRR (Extended Internal Rate of Return) method, which accounts for multiple investments at different times. The formula considers each installment's time value. Our calculator uses the future value formula: FV = P × [(1+i)^n - 1] / i × (1+i), where P is monthly investment, i is monthly return rate, and n is number of months.
Is SIP taxable?
Yes, SIP returns are subject to capital gains tax. For equity funds: STCG (held less than 1 year) is taxed at 15%, LTCG (held more than 1 year) is tax-free up to ₹1 lakh per year and 10% thereafter. For debt funds: STCG is taxed as per income slab, LTCG (held more than 3 years) at 20% with indexation.
What happens if I miss a SIP payment?
Missing one SIP payment doesn't penalize you - the SIP continues next month. However, if you miss 3 consecutive payments, the SIP may be canceled by the fund house. You can also pause SIPs for 1-3 months with most fund houses if facing financial difficulties.