SIP Calculator

What is a SIP?

A Systematic Investment Plan (SIP) is a method of investing in mutual funds where you invest a fixed amount of money at regular intervals (usually monthly). It's a disciplined approach to investing that helps you take advantage of market volatility through a concept called rupee cost averaging.

How is the Future Value of a SIP Calculated?

The formula to calculate the maturity amount of a SIP is:

FV = P × {[((1 + i)^n - 1) / i] * (1 + i)}

Where:

• FV is the Future Value or maturity amount.
• P is the monthly investment amount.
• i is the monthly rate of return (annual rate / 12).
• n is the total number of investment months (tenure in years × 12).

Frequently Asked Questions

How does this SIP calculator work?

You need to provide three inputs: your monthly investment amount, the expected annual rate of return, and the investment duration in years. The calculator then uses the standard compound interest formula to project the total value of your investment over time.

Is the return guaranteed?

No, the returns from mutual funds are subject to market risks. The expected return rate you enter is just an assumption. The actual returns can be higher or lower depending on the performance of the fund and market conditions.