SIP Calculator

A Systematic Investment Plan (SIP) invests a fixed amount at a regular interval, usually every month, into a mutual fund or similar product. The idea is to keep the decision simple: pick an amount you can sustain, invest it on a schedule, and let compounding work on the growing balance.

Each installment buys units at that day’s price. When prices are lower, the same rupee amount buys more units; when prices are higher, it buys fewer. Over a long stretch this averaging effect can reduce the impact of investing everything at one market level.

This calculator does not use live NAVs. It converts your expected annual return into a monthly rate and compounds the growing balance. That is useful for planning, not for predicting a specific fund.

Suppose you invest ₹10,000 every month for 10 years and assume 12% a year. The invested amount is ₹12,00,000. Using monthly compounding and beginning-of-month contributions, the estimated value is about ₹23,23,391. The difference is estimated returns, not a promised profit.

A lumpsum invests the full amount immediately, so the entire principal compounds for the whole period. A SIP invests gradually, so early installments compound longer than later ones. If you already have a corpus ready to invest and are comfortable with the timing, compare both calculators with the same assumed return. If you earn monthly and want a habit, SIP usually matches cash flow better.

SIPs are useful when you want discipline without timing the market, when money arrives monthly, and when you want to raise the amount as income grows. They do not remove market risk, and skipping installments or stopping after a fall can undo the averaging benefit.

Expense ratios, exit loads, taxes and contribution pauses are not built into the numbers. Very high assumed returns can make a plan look easier than it is. Use a rate you could still live with if markets are weaker than the long-run average.