What is a SIP Calculator?
A Systematic Investment Plan (SIP) calculator is a utility tool that allows you to calculate the returns on your mutual fund investments made through SIP. SIP investments in mutual funds have become one of the most popular investment options for millennials.
Use Graphical Analysis: Our tool provides a visual pie chart to help you understand the ratio of your investment versus the wealth gained.
How does this SIP Calculator work?
Our SIP calculator uses the compound interest formula to determine the potential returns. It considers:
- Monthly Investment Amount: How much you invest every month.
- Investment Period: The duration of your investment.
- Expected Rate of Return: The annual interest rate you expect (e.g., 12% for equity funds).
Benefits of SIP
SIPs allow you to invest small amounts regularly (as low as ₹500). They instill financial discipline and help in Rupee Cost Averaging, meaning you buy more units when markets are low and fewer when markets are high.
Read our detailed guide: What is SIP and How Does it Work?
SIP vs Lumpsum
While SIP is great for regular saving, Lumpsum is better if you have a large amount of idle cash. SIP reduces market timing risk. Compare the two with our Lumpsum Calculator.