Small monthly amounts, compounding over years
Plug in your monthly contribution, an assumed yearly return, and your horizon to see invested capital, estimated growth, and charts. Built for mutual fund SIPs and other steady, rupee-based plans in India—illustrative math, not a forecast.
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Calculate Your SIP
Invested
₹6.00 L
Returns
₹5.62 L
Total Value
₹11.62 L
Investment Breakdown
Growth Over Time
What is SIP?
A Systematic Investment Plan (SIP) is a disciplined approach to investing where you commit to investing a fixed amount at regular intervals, typically monthly, into a mutual fund scheme. Instead of investing a large sum at once, SIP breaks down your investment into smaller, manageable portions that fit your budget and lifestyle.
How Does SIP Work?
When you start a SIP, a fixed amount is automatically debited from your bank account on a specified date each month and invested in your chosen mutual fund scheme. The fund allots units based on the current Net Asset Value (NAV). Over time, you accumulate units at different price points. This means buying more units when prices are low and fewer when prices are high. This process, known as rupee cost averaging, helps reduce the impact of market volatility on your overall investment.
Benefits of SIP
- • Disciplined Investing: Automates your investment habit, removing emotional decision-making.
- • Rupee Cost Averaging: Reduces the risk of investing at the wrong time by spreading purchases across market cycles.
- • Power of Compounding: Earnings on your investments generate their own returns, creating a snowball effect over time.
- • Accessibility: Start with as little as ₹500 per month, making investing accessible to everyone.
- • Flexibility: Increase, decrease, or pause your SIP based on your financial situation.
SIP Formula Explained
M = P × [(1 + i)^n - 1] / i × (1 + i)
- M = Future value of the investment
- P = Monthly investment amount
- i = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Total number of monthly instalments (years × 12)
For example, if you invest ₹5,000 per month at 12% annual returns for 10 years, your total investment of ₹6,00,000 could potentially grow to approximately ₹11,61,695.
Disclaimer: The calculations are based on assumed rates of return and are for illustrative mathematical purposes only. They do not constitute authorized financial advice or personalized growth promises.