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Financial Calculator

SIP Calculator

See how your monthly SIP investment grows over time with the power of compounding.

SIP investing tips

  • Start early — even a 5-year head start can add tens of lakhs to your final corpus thanks to compounding.
  • Step up your SIP by 10–15% every year as your income grows; this dramatically accelerates wealth creation.
  • Stay invested through market dips — SIP naturally averages out purchase costs (rupee cost averaging).
  • Diversify across equity, debt, and hybrid funds to balance growth and stability based on your risk appetite.

How SIP compounding works

A Systematic Investment Plan (SIP) lets you invest a fixed amount every month into a mutual fund. Each investment unit grows independently — units bought in month 1 compound for the full tenure, while units bought later compound for less time. This staggered compounding is what creates the exponential growth you see on the chart above.

The future value formula used here is: FV = P × ((1+r)^n - 1) / r × (1+r), where P is the monthly investment, r is the monthly rate of return (annual rate ÷ 12 ÷ 100), and n is the total number of months. Real mutual fund returns vary, so treat the output as an estimate rather than a guarantee.

Frequently asked questions

What is SIP?
SIP (Systematic Investment Plan) is a method of investing a fixed sum regularly — usually monthly — into a mutual fund. It removes the need to time the market and builds wealth gradually. SIPs are one of the most popular investment instruments in India for retail investors.
When should I start a SIP?
The best time to start a SIP is as early as possible. Starting at age 25 vs 30 with the same monthly amount and returns can result in a corpus 50–70% larger by retirement, purely because of the extra years of compounding. If you have an emergency fund in place and no high-interest debt, you should start your SIP today.
Is SIP better than lump sum investment?
It depends on market conditions and your cash flow. In a rising market, a lump sum invested at the bottom outperforms SIP. But since timing the market is nearly impossible, SIP's rupee cost averaging removes that risk — you automatically buy more units when prices are low. For most investors, SIP is the more practical and psychologically sustainable approach.

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