How to Use the SIP Calculator
- Enter the monthly SIP investment amount you plan to make.
- Enter the expected annual return rate for your mutual fund.
- Select the time period (in years) for which you plan to invest.
- View the total invested amount, estimated returns, and total future value.
SIP Formula Explained
The formula used by the SIP calculator is M = P × [{(1 + i)^n - 1} / i] × (1 + i). Where M is the maturity amount, P is the monthly investment amount, i is the monthly interest rate (annual rate / 12 / 100), and n is the total number of months.
₹5,000 Monthly SIP
Monthly Investment: ₹5,000 | Return Rate: 12% | Tenure: 15 Years
M = 5000 * [{(1 + 0.01)^180 - 1} / 0.01] * (1 + 0.01)
Total Investment: ₹9,00,000 | Estimated Returns: ₹16,22,880 | Total Value: ₹25,22,880
₹10,000 Monthly SIP
Monthly Investment: ₹10,000 | Return Rate: 15% | Tenure: 10 Years
M = 10000 * [{(1 + 0.0125)^120 - 1} / 0.0125] * (1 + 0.0125)
Total Investment: ₹12,00,000 | Estimated Returns: ₹15,86,573 | Total Value: ₹27,86,573
₹2,000 Monthly SIP for 20 Years
Monthly Investment: ₹2,000 | Return Rate: 10% | Tenure: 20 Years
M = 2000 * [{(1 + 0.00833)^240 - 1} / 0.00833] * (1 + 0.00833)
Total Investment: ₹4,80,000 | Estimated Returns: ₹10,45,263 | Total Value: ₹15,25,263
Tips for Investors
- Start investing early to maximize the benefits of compounding.
- Increase your SIP amount every year in line with your income growth (Step-up SIP).
- Do not stop your SIPs during market downturns; this is when you accumulate more units.
- Link your investment goals to specific time horizons.
- Review your portfolio periodically to ensure it aligns with your risk appetite.
Common Mistakes to Avoid
- Stopping SIPs when the market is falling.
- Not increasing the SIP amount as income increases.
- Having too many mutual funds in the portfolio (over-diversification).
- Focusing only on short-term past performance instead of long-term consistency.