Sip Calculator

A SIP (Systematic Investment Plan) calculator helps you understand how regular, disciplined investing in mutual funds can build wealth over time. Popular in India but gaining traction worldwide, SIP investing means putting a fixed amount into mutual funds monthly instead of investing a lump sum. This approach has several advantages: you avoid trying to time the market (which rarely works), you benefit from rupee-cost averaging (buying more units when prices are low and fewer when high), and you build the investing habit through automation. The calculator shows how these consistent contributions can grow into substantial wealth, proving that investing isn't just for the wealthy—it's how you become wealthy.

First, decide how much you can invest monthly. Even small amounts like ₹1,000 or ₹2,000 add up significantly over time. Enter this as your monthly investment. Next, choose your time period—how many years you plan to keep investing. The longer, the better, as compounding needs time to work its magic. Then comes the expected return rate. Equity mutual funds historically return 12-15% annually in India, but being conservative with 10-12% is wise. The calculator will show your total invested amount, expected returns, and final corpus. Try adjusting the numbers to see different scenarios. What if you increased your SIP by ₹500? What if you invested for five extra years? These insights help you plan strategically.

The calculator displays three crucial numbers: total investment (what you put in), total returns (what your money earned), and final value (your wealth at the end). Most people are amazed by how much of the final amount comes from returns rather than contributions. The calculator often includes a chart showing your wealth accumulation over time. Notice how the growth is modest initially but accelerates dramatically in later years—that's compounding at work. Some calculators show year-by-year breakdowns, helping you see exactly when you'll cross major milestones like ₹10 lakhs, ₹25 lakhs, or ₹1 crore. This helps keep you motivated during market downturns when you might be tempted to stop investing (which is precisely when you shouldn't).

Priya, a 28-year-old software engineer, decides to start a SIP of ₹5,000 monthly in a diversified equity mutual fund. She plans to continue until age 58 (30 years) and assumes a 12% annual return, which is reasonable for equity funds over long periods. Her total investment over 30 years would be ₹18,00,000 (₹5,000 × 12 months × 30 years). But here's where it gets interesting: at 12% returns, her final corpus would be approximately ₹1,76,50,000 (about ₹1.76 crores). That means ₹1,58,50,000 came from returns—nearly nine times her actual contributions. Now, what if Priya increases her SIP by 10% annually as her salary grows? That same starting ₹5,000 SIP, increasing each year, could grow to over ₹4.5 crores. This is why financial advisors emphasize starting early and increasing investments as income grows—the numbers become life-changing.