Investment Details

Monthly Investment (₹)

Expected Annual Return (%)

Investment Duration

Duration Unit

Results

Total Maturity Value

₹0

at 12% p.a. for 10 years

Invested Amount₹0

Estimated Returns₹0

Total Value₹0

Total Months120

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SIP Formula

FV = P × ((1 + r)ⁿ − 1) / r × (1 + r)
Where P = monthly amount, r = monthly rate, n = months

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How it Works

Each monthly instalment earns compounded interest. Early instalments compound longer, so starting early makes a big difference.

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Example

₹5,000/month at 12% p.a. for 10 years
Invested: ₹6,00,000
Returns: ~₹5,64,000
Maturity: ~₹11,64,000

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Power of Compounding

SIP benefits from rupee cost averaging and compounding. A longer horizon dramatically increases returns relative to invested capital.

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Key Factors

Monthly amount · Annual return rate · Duration. Even a small increase in any of these significantly boosts your final corpus.

Frequently Asked Questions

What is SIP? +

SIP (Systematic Investment Plan) is a method of investing a fixed amount in a mutual fund at regular intervals — typically monthly. It helps build wealth gradually using the power of compounding and rupee cost averaging.

How is SIP return calculated? +

SIP future value is calculated using: FV = P × ((1 + r)ⁿ − 1) / r × (1 + r), where P is the monthly investment, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of months.

Is the return rate guaranteed? +

No. Mutual fund SIP returns are market-linked and not guaranteed. The rate you enter is an assumed annual return for estimation purposes. Actual returns will vary based on market conditions and the fund chosen.

What is a realistic SIP return rate in India? +

Equity mutual funds in India have historically delivered 10–14% CAGR over long periods. Debt funds typically yield 6–8%. A 12% assumption is commonly used for long-term equity SIP projections.

Can I start a SIP with ₹500 per month? +

Yes. Many mutual funds in India allow SIPs starting from ₹500 per month. Some platforms and funds even allow ₹100 per month, making SIP accessible for first-time investors.

SIP Calculator