What is a Systematic Investment Plan (SIP)?

A SIP allows you to invest a fixed sum regularly in mutual fund schemes, building disciplined long-term wealth through rupee cost averaging.

What is a realistic expected return rate for mutual funds?

Historically, diversified equity mutual funds in India have averaged between 10% to 14% annual CAGR over 7–10 year horizons, though market returns are not guaranteed.

Is SIP better than a lump sum investment?

SIP averages out market volatility (rupee cost averaging) and eliminates the need to time the market.

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SIP Calculator

Calculate returns and future maturity wealth for Systematic Investment Plans (SIP) in mutual funds and equity.

SIP Calculator Interactive Workspace

Client-side calculations and instant parameter controls are initializing. All processing occurs securely in your browser.

How to Use the SIP Calculator

1 Enter your monthly SIP investment amount.
2 Enter your expected annual rate of return (e.g., 12% for equity mutual funds).
3 Select the investment duration in years.
4 Review your total invested capital, estimated capital gains, and total projected portfolio value.

Mathematical Formula & Principle

FV = P × [((1 + r)^n − 1) / r] × (1 + r) (where P=Monthly Investment, r=Monthly Rate, n=Total Months)

Calculations are performed with IEEE floating point mathematical precision directly in your device memory.

Worked Examples

10-Year Wealth Plan

Input: ₹5,000/month at 12% for 10 Years

Result: Invested: ₹600,000 | Returns: ₹562,045 | Total Value: ₹1,162,045

Compounding growth nearly doubles the original investment over 10 years.

20-Year Long-Term Compounding

Input: ₹10,000/month at 12% for 20 Years

Result: Invested: ₹2,400,000 | Returns: ₹7,591,480 | Total Value: ₹9,991,480

Returns outpace invested capital by more than 3x over 20 years.

Frequently Asked Questions

What is a Systematic Investment Plan (SIP)?: A SIP allows you to invest a fixed sum regularly in mutual fund schemes, building disciplined long-term wealth through rupee cost averaging.
What is a realistic expected return rate for mutual funds?: Historically, diversified equity mutual funds in India have averaged between 10% to 14% annual CAGR over 7–10 year horizons, though market returns are not guaranteed.
Is SIP better than a lump sum investment?: SIP averages out market volatility (rupee cost averaging) and eliminates the need to time the market.

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