SIP Calculator
Estimate the future value of your Systematic Investment Plan (SIP) investments.
How a Small Monthly Investment Can Build Crores
A Systematic Investment Plan (SIP) is one of the most powerful and disciplined ways to build wealth. By investing a fixed amount regularly, you leverage the power of compounding and rupee-cost averaging. This calculator helps you visualize that potential. It shows how even a modest monthly investment can grow into a substantial corpus over time, making it an essential tool for planning long-term goals like retirement or a child's education.
How to Project Your SIP Growth
To see the potential of your investment, you only need three inputs:
- Monthly Investment (₹): The amount you plan to invest each month.
- Expected Return Rate (%): The average annual return you anticipate. For equity mutual funds in India, a long-term historical average is often estimated at 12%, though this is not guaranteed.
- Time Period (Years): The duration you plan to stay invested. The longer the period, the more significant the compounding effect.
The calculator will instantly show your total invested amount, your estimated returns, and the final maturity value.
Frequently Asked Questions (FAQ)
Q: What is Rupee Cost Averaging?
A: Rupee Cost Averaging is the primary benefit of a SIP. When you invest a fixed amount regularly, you automatically buy more units of a mutual fund when the price is low and fewer units when the price is high. This can lower your average cost per unit over time, reducing the risk of trying to "time the market."
Q: Are the returns from a SIP guaranteed?
A: Absolutely not. This is one of the most important things to understand. The returns shown are an *estimate* based on the rate you enter. Actual returns from market-linked investments like mutual funds are not guaranteed and depend entirely on market performance.
Q: Should I stop my SIP when the market is down?
A: While this is not financial advice, conventional wisdom says no. A falling market means your fixed SIP amount is buying more units at a lower price. Stopping your SIP during a downturn means you miss out on the opportunity to lower your average cost, which is the core benefit of the strategy.