What is a SIP?
A SIP, or systematic investment plan, is a way to invest a fixed amount in a mutual fund every month, usually by auto-debit. Each instalment buys units at that day's price, so you buy more units when prices are low and fewer when they are high.
Ready answers
How to use this calculator
- Enter how much you will invest every month.
- Enter the yearly return you expect. Equity funds have given about 10% to 14% a year over long periods, but returns are not guaranteed.
- Pick the number of years and read the result and the year-by-year table.
Formula
Future value = P × [(1 + i)n − 1] ÷ i × (1 + i), where P is the monthly SIP, i is the monthly return (yearly % ÷ 12 ÷ 100) and n is the number of months.
New to these words? See the money glossary.
Common questions
How much will ₹5,000 a month SIP become in 15 years?
At 12% a year it becomes about ₹25.2 lakh. You put in ₹9 lakh and growth adds about ₹16.2 lakh.
Is SIP return guaranteed?
No. Mutual fund returns depend on the market. The calculator shows what a steady return would give; real returns go up and down.
Which is better, SIP or lumpsum?
SIP spreads your buying over time, which suits monthly salaries and smooths out market ups and downs. A lumpsum works if you already have the money and can stay invested for long.
How does a SIP return calculator work?
It assumes your monthly amount earns a steady yearly return and adds it up month by month. Real mutual fund returns move up and down, so treat the answer as an estimate.
SIP kitna banega 10 saal me?
₹5,000 mahina 12% par 10 saal me lagbhag ₹11.6 lakh ban jata hai. Aap ₹6 lakh lagate hain, baaki growth hai.
What is the formula used in a SIP calculator?
Future value = P × [(1 + i)ⁿ − 1] ÷ i × (1 + i), where P is the monthly SIP, i the monthly return and n the number of months. The calculator works it out for you.
What is the minimum amount for a SIP?
Most mutual funds accept SIPs from ₹500 a month, and some allow smaller amounts. There is no upper limit.
Are SIP calculator returns guaranteed?
No. Mutual fund returns go up and down with the market. The calculator shows what a steady yearly return would give, so use it to plan, not as a promise.