SIP Calculator
What is a SIP Calculator?
A SIP Calculator is a virtual financial estimation tool that enables investors to calculate estimated capital returns on their mutual fund investments over time. The online mutual fund SIP calculator is free to use, allowing any investor to instantly evaluate how their recurring monthly discipline will compound into significant long-term wealth.
To use the calculator, simply enter your monthly contribution amount, investment tenure in years, and expected annual return rate (p.a.). The calculator automatically projects your total invested amount against estimated capital gains.
Year-by-Year Wealth Growth
Compounding Schedule| Year | Invested Amount | Est. Returns | Total Future Value |
|---|
How Does a SIP Calculator Work?
The SIP calculator operates using a standardized compound interest formula. It evaluates key inputs—including your periodic instalment amount, expected annual return percentage, and investment horizon—to present a clear visual comparison between your total capital outlay and net maturity profits.
Practical Example:
Suppose you start a monthly SIP of ₹5,000 for 12 years at an expected return rate of 12% p.a.:
- Total Invested Amount: ₹6,00,000
- Estimated Capital Returns: ₹5,61,695
- Total Maturity Wealth: ₹11,61,695
What is the SIP Calculator Formula?
The mathematical formula used by online SIP calculators to compute final maturity returns is:
Different types of SIP investment and their details:
| Mutual Fund SIP Name | Main Features | Suitability | Benefits | Expected Annual Return Rate | Risks |
|---|---|---|---|---|---|
| Equity SIP | Invests in equity mutual funds | Long-term investors with high risk bearing appetite | Potential for high returns | 12-18% | Market volatility, risk of capital loss |
| Debt SIP | Invests in debt mutual funds | Investors with moderate risk bearing capacity | Lower risk compared to equity SIP | 3-9% | Lower returns compared to equity SIP |
| Balanced SIP | Invests in a mix of equity and debt mutual funds | Moderate risk tolerance investors | Provides a balance between risk and return | 7-13% | Depends on market fluctuations |
| Tax-saving SIP | Invests in ELSS (Equity Linked Savings Scheme) mutual funds | Investors looking for tax benefits | Offers tax deduction under Section 80C | 10-38% | Lock-in period of 3 years for ELSS |
| Gold SIP | Invests in gold ETFs (Exchange Traded Funds) | Investors looking to diversify their portfolio | Hedges against inflation | 9-15% | Price of gold influenced by various factors |
| Index SIP | Invests in index funds that offer broad market exposure | Passive investors seeking market returns | Low expense ratio, easy to track | 10-30% | Returns dependent on index performance |
| Sectoral SIP | Invests in mutual funds focusing on specific sectors | Investors with the knowledge of macro trends | Potential for high returns in specific sectors | 13-19% | Higher risk due to sector-specific factors |
Frequently asked questions
Everything you need to know — from what we do to how we do it — in one quick FAQ section.
OPEN ACCOUNTA Systematic Investment Plan (SIP) is a disciplined investment approach where you contribute a fixed sum of money into mutual funds at regular intervals (monthly, quarterly). SIP enables rupee cost averaging and power of compounding growth over long horizons.
