DailyAppsSIP Calculator
Calculate the future value of your Systematic Investment Plan (SIP) investments. See how small monthly investments grow over time.
What is a SIP?
A Systematic Investment Plan (SIP) is a facility offered by mutual funds that allows individuals to invest a fixed amount of money at regular intervals (usually monthly) in a mutual fund scheme.
It helps you build wealth over time by instilling financial discipline and taking advantage of the power of compounding.
Key Benefits
Rupee Cost Averaging
You buy more units when markets are low and fewer when markets are high, averaging out the cost of your investment over time.
Power of Compounding
The returns you earn are reinvested, generating their own returns. Starting early maximizes this effect significantly.
Disciplined Saving
Automated deductions ensure you save first before spending, helping you stick to your financial goals.
How is it Calculated?
The expected return on your SIP investment is calculated using the Future Value of Annuity formula:
- FV: Future Value
- P: Monthly Investment Amount
- i: Periodic Interest Rate (Annual Rate / 12 / 100)
- n: Total Number of Payments (Years × 12)