SIP CALCULATOR
SIP Calculator
Estimate the potential growth of your investments with SIP, Lumpsum, Advance SIP and Step-up SIP options. Adjust amount, time horizon and expected returns to plan your goals.
What is SIP ?
A Systematic Investment Plan (SIP) is a smart and disciplined way to invest in mutual funds. Instead of investing a large amount at once, SIP allows you to invest a fixed amount every month, helping you build wealth gradually through power of compounding and rupee cost averaging. SIPs are one of the most popular investment options in India for beginners as well as long-term investors.
What is a SIP Calculator?
A SIP Calculator helps you estimate how much your investment can grow over time. By entering simple details like monthly SIP amount, investment duration and expected rate of return, the SIP calculator instantly shows your future value, total investment, and estimated returns. It helps you plan your financial goals better, compare different SIP scenarios, and make more informed investment decisions. Using a SIP calculator ensures accurate, quick, and hassle-free financial planning for wealth creation.
SIP Calculator Formula
Learn the exact SIP formula used by popular Indian SIP calculators and see a simple worked example you can follow.
SIP Formula (Easy Explanation)
The future value (FV) of a Systematic Investment Plan is calculated using the annuity formula:
FV = P × [ (1 + i)n − 1 ] / i × (1 + i)
- P = Monthly SIP amount
- i = Monthly rate = (Annual expected return ÷ 12 ÷ 100)
- n = Total months = Years × 12
- The final
× (1 + i)factor is used by many Indian calculators (assumes payment at the beginning of the month).
Worked Example (Simple)
Suppose you invest ₹5,000 every month for 5 years and expect an annual return of 12%.
- Monthly rate:
i = 12% ÷ 12 = 1% = 0.01 - Total months:
n = 5 × 12 = 60 - Apply formula:
FV = 5000 × [ (1.01)60 − 1 ] / 0.01 × 1.01 - Result (approx):
- Future Value (FV): ₹4,12,430 (approx)
- Total Invested: ₹3,00,000
- Estimated Returns: ₹1,12,430
Note: This is an illustrative calculation. Actual returns depend on market performance and fund expenses. Use a SIP calculator to quickly compare multiple scenarios and plan financial goals.
Types of SIP Calculators
SIP calculators come in different formats to help investors plan their financial goals more accurately. Each type of calculator gives clarity on potential returns, total investment, and future value based on your SIP style.
1. Basic SIP Calculator
A Basic SIP Calculator helps you calculate the future value of a fixed monthly SIP amount. It uses the standard SIP formula to show:
- Total investment
- Estimated returns
- Maturity amount
2. Lumpsum Calculator
A Lumpsum Calculator helps you estimate the future value of a one–time investment. You enter the amount, duration, and expected annual return to know how much your investment can grow.
3. Advanced SIP Calculator
The Advanced SIP Calculator is designed for investors who prefer planning with custom features such as:
- SIP invested at the beginning of the month
- More precise compounding
- Flexible ROI and duration inputs
4. Step-up SIP Calculator
A Step-up SIP Calculator allows you to calculate returns when your SIP amount increases every year. This is useful for investors who want to increase their SIP gradually as their income grows.
- Choose starting SIP amount
- Select annual step-up percentage
- Estimate total returns with increasing contributions
5. Goal-Based SIP Calculator
A Goal-Based SIP Calculator helps you calculate how much you need to invest monthly to reach a specific financial goal. Perfect for planning:
- Retirement corpus
- Child’s education
- Wealth creation targets
6. SIP Delay Calculator
A SIP Delay Calculator shows how delaying your SIP by even a few months or years can impact your long-term wealth. It highlights the importance of starting early to maximize returns.
SIP vs Lumpsum vs Step-Up SIP: Full Comparison
Compare all three investment methods side-by-side to understand which approach best suits your financial goals and risk appetite.
| Feature | SIP | Lumpsum | Step-Up SIP |
|---|---|---|---|
| Investment Method | Invest a fixed amount monthly. | Invest full amount at once. | Increase SIP every year by a %. |
| Risk Level | Low risk (rupee-cost averaging). | High risk (market timing). | Moderate (increasing capital yearly). |
| Best For | Salaried & beginners. | Investors with large idle funds. | People expecting yearly income growth. |
| Maturity Value Consistency | Stable, long-term growth. | Can fluctuate greatly. | Higher than SIP due to yearly increase. |
Example: 5-Year Investment at 12% Return
| Investment Type | Total Investment | Maturity Value | Estimated Returns |
|---|---|---|---|
| SIP ₹5,000/month | ₹3,00,000 | ₹4,12,430 | ₹1,12,430 |
| Lumpsum ₹3,00,000 | ₹3,00,000 | ₹5,29,000 | ₹2,29,000 |
| Step-Up SIP ₹5,000 → 10% yearly increase | ₹3,66,000 | ₹5,10,000 | ₹1,44,000 |
Summary: SIP offers disciplined growth, Lumpsum gives highest returns when markets perform well, and Step-Up SIP balances both by increasing your investment capacity every year.