📈 SIP Calculator
Systematic Investment Plan – estimate returns, step‑up, yearly breakdown & growth chart. 100% private.
Increase SIP by this % every year
📊 Year‑by‑Year Growth
| Year | Investment (₹) | Interest (₹) | Balance (₹) |
|---|
* Interest earned during the year, compounded monthly.
❓ Frequently Asked Questions
What is a SIP calculator?
It estimates the future value of your monthly investments in a mutual fund, assuming a constant rate of return. The calculator uses the formula FV = P × [(1 + r)^n – 1] ÷ r × (1 + r) where P is monthly investment, r is monthly return rate, and n is total months.
How does compounding work in SIP?
Compounding is the process where returns earned on investments are reinvested, generating further returns. In SIPs, every rupee invested grows not only by itself but also adds to future growth. The longer the investment horizon, the more powerful compounding becomes. For example, a ₹5,000 monthly SIP at 12% annual return grows to about ₹11.6 lakh in 10 years, ₹49 lakh in 20 years, and nearly ₹1.76 crore in 30 years. The real magic happens in later years – the final 5 years of a 25-year SIP can generate more than ₹4 crore in wealth even though the monthly amount remains unchanged.
Why is starting early so important?
The earlier you begin, the less you need to invest to achieve the same goal. Consider two investors: Rohan starts at age 25 with ₹5,000 monthly for 30 years and accumulates ₹1.76 crore. Amit starts at 35 with the same ₹5,000 monthly but only for 20 years, accumulating just ₹49 lakh – despite investing the same amount per month. Starting just 10 years later results in 3.5 times less corpus. The key is patience – letting compounding work its magic over decades.
What is step‑up SIP and how does it help?
Step-up SIP allows you to increase your monthly contribution by a fixed percentage every year (e.g., 10% annually) to accelerate wealth creation. This strategy, known as incremental investing, significantly boosts wealth accumulation. For instance, a ₹1 lakh annual investment increased by 5% yearly at 8% return grows to ₹36.44 lakh in 15 years – compared to just ₹27.15 lakh without step-up. The growth curve steepens because each new, larger contribution initiates its own compounding growth.
What are the advantages of SIP investing?
SIPs offer several benefits: rupee cost averaging (buying more units when markets are low and fewer when high), low entry barrier (start with as little as ₹500), disciplined investing habit, and flexibility to increase, decrease, or stop anytime without charges. SIPs can be started in equity, debt, or hybrid schemes depending on your risk profile and investment horizon.