ArthSangrah

SIP Calculator

💡 Start small, invest regularly, and watch your wealth grow over time with smart SIP planning.
Monthly Investment (₹)
Rate of Interest (% p.a.)
Time Period (in Years)
Note: To see the chart, please view this in a larger screen
Calculated Returns
Invested Amount
₹ 30,00,000
Estimated Returns
₹ 28,08,477
Total Value
₹ 58,08,477
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is a disciplined investment method where investors contribute a fixed amount at regular intervals (monthly, quarterly, etc.) into mutual funds. It allows wealth accumulation over time through the power of compounding and rupee cost averaging.
Features
  • Regular Investments - Investors can invest a fixed amount at predefined intervals (e.g., monthly)
  • Flexibility - Investors can increase, decrease, or stop SIPs as needed
  • Compounding Benefits - Earnings are reinvested, leading to exponential growth over time
  • Affordable - Start Investing with as little as ₹ 100 to ₹ 500 per month
  • Rupee Cost Averaging - Buys more units when prices are low and fewer when prices are high, reducing overall investment risk
Benefits
  • 📈 Disciplined Investing - Encourages regular savings and financial discipline
  • 📉 Reduces Market Timing Risk - Eliminates the need to time the market by averaging costs
  • 💰 Wealth Creation - Helps in long-term wealth generation due to compounding
  • 🔄 Automatic & Hassle-Free - Can be automated via bank mandates
  • 🛡️ Lower Risk Compared to Lump Sum - Spreads investments over time, reducing market volatility impact
Eligibility & Requirements
  • Indian citizens, NRIs, and HUFs can invest in SIPs
  • Minors can invest through a guardian
  • A Valid Demat Account
  • Requires KYC compliance (PAN, Aadhaar, and bank details)
How to Calculate SIP Returns?
The maturity amount for SIP investments is calculated using the formula:
A=P×(1+r)n−1r×(1+r)A = P \times \frac{(1+r)^{n} - 1}{r} \times (1+r)
where,

  • A=Maturity AmountA = Maturity \space Amount
  • P=Monthly Investment AmountP = Monthly \space Investment \space Amount
  • r=Monthly Rate of Return (AnnualRate12×100)r = Monthly \space Rate \space of \space Return \space (\frac{Annual Rate}{12 \times 100})
  • n=Total number of Monthsn = Total \space number \space of \space Months

Example Calculation
If you invest ₹ 5,000 every month for 10 years at 12% annual interest:
Monthly Rate of Interest (r) = 12/(12×100) = 0.01Monthly \space Rate \space of \space Interest \space (r) \space = \space 12 / (12 \times 100) \space = \space 0.01

Total Number of Months (n) = 10×12 = 120Total \space Number \space of \space Months \space (n) \space = \space 10 \times 12 \space = \space 120

A=5,000×(1+0.01)120−10.01×(1+0.01)A = 5,000 \times \frac{(1 + 0.01)^{120} - 1}{0.01} \times (1 + 0.01)

The maturity amount will be approximately ₹ 11,46 lakhs.
For quick calculations, you can use the calculator on this website