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A SIP Calculator helps you estimate how your mutual fund investments done using Systematic Investment Plan (SIP) method can grow over a particular period of time depending on the amount, duration, and expected returns.
A SIP Calculator is a simple and quick tool to help investors calculate the potential returns they can get from their mutual fund SIPs. A recent trend shows the increasing popularity of SIPs among millennials and Gen Zs, both as they are much more convenient and allow you to build long-term wealth gradually through disciplined monthly contributions.
The systematic investment plan calculator, also called the mutual fund SIP calculator, lets you know the value of your investments based on three things, namely amount, tenure, and expected rate of return. While this SIP plan calculator provides a quick estimate, the actual returns of a mutual fund scheme might vary depending on various factors. The SIP Calculator doesn’t take into consideration the expense ratio or the exit load. Still, it can guide you with a rough projection of your corpus and help you compare it with a lump-sum investment.
Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly into mutual funds or even stocks, helping you grow your money over time. Imagine that you are saving a fixed amount every month by putting X amount of money in a box. It is surely a disciplined way to save money, but that money just sits there and doesn’t actually grow. Hence, you invest money through weekly, quarterly, or monthly Systematic Investment Plans (SIPs).
The best part of SIPs is their convenience. You don’t have to worry about the timing of the market or remembering to invest. Once set up, your contributions happen automatically. This builds consistency, helps you benefit from rupee cost averaging, and grows your money through the power of compounding.
SIPs are flexible, so you can start small and increase your amount as your income rises. If you want to calculate how much your investments can grow with an increase in SIPs amount, try using a Step up SIP calculator online to estimate the potential returns.
To calculate the amount you will receive upon maturity of an SIP, also known as the future value, the following formula is used:
In this formula:
Example:
Say Mr. A wants to invest Rs. 5000 per month for 10 years at an annual rate of 12% through SIP
investment.
Monthly Return = {(1 + Annual Return)^(1/12)} – 1
r = (1 + 0.12)^(1/12) − 1 = 0.0095 or 0.95%
Now, let's plug the values into the formula:
P = ₹5,000
r ≈ 0.0095
n = 120
FV = 5,000 × 118 / 0.0095 × (1 + 0.0095)
After 10 years, Mr. A’s SIP corpus will be around Rs 11.2 lakh. Out of this, he has invested Rs 6 lakh (₹5,000 x 120), and the remaining Rs 5.2 lakh is all compounded.
One key point to remember is that the rate of return on SIP is not fixed and might differ with market conditions.
The SIP calculators provided here are designed for you to plan your investments more effectively. Calculating SIP investment return using SIP calculator is quick, easy, and takes a few simple steps:
The calculator shows your estimated maturity amount, total investment, and potential gains after compounding.
We provide you with different SIP calculators online for your different goals:
This tool offers the best SIP calculator with the following benefits:
Well, there are different types of SIPs and not all of them work the same way. You can always choose which one is more suitable for you based on your flexibility and your goal. Here’s a quick look at how each one works:
Apart from this, SIPs can also differ based on where your money is parked, such as equity funds, debt funds, balanced funds, overnight funds, or money market funds.
Now that we know what SIP is, let’s understand how it actually differs from Lump-sum and Step-Up SIPs.
| SIP | Step-Up SIP | Lumpsum |
|---|---|---|
| Invest a fixed amount regularly (weekly, quarterly, monthly, etc.) | Invest regularly and automatically increase the amount at set intervals as per the financial bandwidth. | Invest the entire amount at once. |
| Can start, pause, or stop anytime | Can increase SIP automatically or manually | One-time investment, hence no flexibility |
| Best for beginners or those who want disciplined, gradual investing | Salaried investors who get annual bonuses and increments, and would wish to increase the investment amount | Investors with a large sum ready to invest |
| Can expect a steady, long-term growth via compounding and rupee cost averaging | Higher corpus potential due to periodic amount increases | Can be high or low, depending on the market |
If you are planning to start an SIP and are confused about whether to go with a Step-Up SIP, a lump sum investment, or a Systematic Investment Plan, then let us break this down for you.
Below are three tables, each showing how an investor’s corpus could grow over a 10-year horizon, assuming an annual growth rate of 15% CAGR.
Here’s a quick comparison of how your money grows in an SIP, a lump sum, and a step-up SIP.
| Year | Amount Invested | Estimated Returns | Maturity Value |
|---|---|---|---|
| 1st Year | ₹ 60,000 | ₹ 5,106 | ₹ 65,106 |
| 2nd Year | ₹ 60,000 | ₹ 20,677 | ₹ 1,40,677 |
| 3rd Year | ₹ 60,000 | ₹ 48,397 | ₹ 2,28,397 |
| 4th Year | ₹ 60,000 | ₹ 90,219 | ₹ 3,30,219 |
| 5th Year | ₹ 60,000 | ₹ 1,48,408 | ₹ 4,48,408 |
| 6th Year | ₹ 60,000 | ₹ 2,25,598 | ₹ 5,85,598 |
| 7th Year | ₹ 60,000 | ₹ 3,24,841 | ₹ 7,44,841 |
| 8th Year | ₹ 60,000 | ₹ 4,49,683 | ₹ 9,29,683 |
| 9th Year | ₹ 60,000 | ₹ 6,04,239 | ₹ 11,44,239 |
| 10th Year | ₹ 60,000 | ₹ 7,93,286 | ₹ 13,93,286 |
| Year | Amount Invested | Estimated Returns | Maturity Value |
|---|---|---|---|
| 1st Year | ₹ 1,00,000 | ₹ 15,000 | ₹ 115,000 |
| 2nd Year | - | ₹ 32,250 | ₹ 1,32,250 |
| 3rd Year | - | ₹ 52,088 | ₹ 1,52,088 |
| 4th Year | - | ₹ 74,901 | ₹ 1,74,901 |
| 5th Year | - | ₹ 1,01,136 | ₹ 2,01,136 |
| 6th Year | - | ₹ 1,31,306 | ₹ 2,31,306 |
| 7th Year | - | ₹ 1,66,002 | ₹ 2,66,002 |
| 8th Year | - | ₹ 2,66,002 | ₹ 3,05,902 |
| 9th Year | - | ₹ 2,51,788 | ₹ 3,51,788 |
| 10th Year | - | ₹ 3,04,556 | ₹ 4,04,556 |
| Year | Amount Invested | Estimated Returns | Maturity Value |
|---|---|---|---|
| 1st Year | ₹ 60,000 | ₹ 5,106 | ₹ 65,106 |
| 2nd Year | ₹ 66,000 | ₹ 21,188 | ₹ 1,47,188 |
| 3rd Year | ₹ 72,600 | ₹ 51,207 | ₹ 2,49,807 |
| 4th Year | ₹ 79,860 | ₹ 97,951 | ₹ 3,76,411 |
| 5th Year | ₹ 87,846 | ₹ 1,65,936 | ₹ 5,32,242 |
| 6th Year | ₹ 96,631 | ₹ 2,59,718 | ₹ 7,22,655 |
| 7th Year | ₹ 1,06,294 | ₹ 3,84,933 | ₹ 9,54,163 |
| 8th Year | ₹ 1,16,923 | ₹ 5,48,269 | ₹ 12,34,422 |
| 9th Year | ₹ 1,28,615 | ₹ 7,57,652 | ₹ 15,72,421 |
| 10th Year | ₹ 1,41,477 | ₹ 10,22,464 | ₹ 19,78,709 |
Well, all three approaches have their advantages, but we can conclude that regular SIPs are best suited for consistent investors, lump sum is suitable for investors who have surplus capital, and Step-Up SIP suits investors who have long-term targets.
| Investment Type | Investment Term | Total Investment | Estimated Returns | Maturity Value |
|---|---|---|---|---|
| SIP (₹5,000/month at 15% CAGR) | 10 Years | ₹6,00,000 | ₹7,93,286 | ₹13,93,286 |
| Lump Sum (₹1,00,000 at 15% CAGR) | 10 Years | ₹1,00,000 | ₹3,04,556 | ₹4,04,556 |
| Step-Up SIP (Start ₹5,000, 10% annual increase at 15% CAGR) | 10 Years | ₹8,15,000 | ₹10,22,464 | ₹ 19,78,709 |
Please note that the above returns are approximate estimates. Actual returns might differ based on the selected category, the scheme chosen and current market conditions.