Home›Finance›SIP Calculator

📊 SIP Calculator

Calculate returns on Systematic Investment Plan (SIP). See how monthly investments grow with compound interest.

Monthly SIP Amount ($)

Expected Annual Return (%)

Investment Period (Years)

Result

Frequently Asked Questions

What is SIP?▾

Systematic Investment Plan — investing a fixed amount monthly into mutual funds or investments to build wealth through compound interest.

How much should I invest in SIP?▾

Start with an amount you can comfortably invest every month without fail. Even $100/month grows significantly over 15-20 years.

What return should I expect from SIP?▾

Historical equity market returns average 10-12% annually over long periods. Conservative estimates use 8-10%. Past performance doesn't guarantee future results.

About SIP Calculator

What is SIP?

Systematic Investment Plan (SIP) is an investment strategy where you invest a fixed amount at regular intervals (usually monthly) into a mutual fund or investment vehicle. SIP harnesses the power of rupee/dollar cost averaging and compound interest to build wealth over time. It's one of the most popular and disciplined approaches to long-term investing.

How SIP Returns Are Calculated

SIP returns are calculated using the future value of an annuity formula: FV = P × ((1+r)^n - 1)/r × (1+r), where P is the monthly investment, r is the monthly rate of return, and n is the total number of months. Each monthly installment compounds independently, creating powerful wealth accumulation over time.

Why SIP is Powerful

Rupee/Dollar Cost Averaging: By investing fixed amounts regularly, you buy more units when prices are low and fewer when high, averaging out your cost over time. Compound Interest: Your returns earn their own returns, creating exponential growth. Discipline: Automated monthly investments remove emotional decision-making from investing. Accessibility: Start with small amounts — even $50-100 per month can grow significantly over decades.

SIP vs Lump Sum Investment

SIP spreads your investment over time, reducing the risk of investing everything at a market peak. Lump sum investing puts all capital to work immediately, potentially earning more if markets rise. For most people, SIP is safer and more practical since it doesn't require a large upfront amount. Many financial advisors recommend SIP for beginners and long-term wealth building.

Example: $500 Monthly SIP

Investing $500/month at 12% annual return: After 10 years = ~$115,000 (invested $60,000). After 20 years = ~$499,000 (invested $120,000). After 30 years = ~$1,764,000 (invested $180,000). The longer you invest, the more dramatic the compounding effect becomes.