SIP Calculator
Wealth Creation with Systematic Investment Plans
A Systematic Investment Plan (SIP) is your gateway to disciplined wealth creation, allowing you to invest a fixed amount regularly in mutual funds to harness the power of compounding. Our SIP Calculator is designed to demystify this process, offering a clear projection of your investment’s growth based on your monthly contributions, investment horizon, and expected returns. Whether you’re a young professional starting small or a seasoned investor scaling up, this tool tailors projections to your financial goals, be it buying a home, funding education, or building a retirement corpus.
Start by entering your monthly SIP amount—think of it as a commitment to your future, as little as ₹500 or as much as your budget allows. Next, specify your investment period, from a few years for short-term goals to decades for long-term wealth. The expected annual return reflects your mutual fund’s performance, typically 8-15% for equity funds or 6-8% for debt funds. The calculator then computes the future value of your investments, revealing the total amount invested and the wealth gained through compounding.
What makes this calculator powerful is its ability to illustrate compounding’s magic. For example, a 30-year-old investing ₹5,000 monthly at a 12% return could accumulate over ₹44 lakh in 20 years, with only ₹12 lakh invested. Increase the tenure to 30 years, and the corpus soars to ₹1.76 crore. Experiment with different amounts or periods to align with your aspirations—perhaps a ₹10,000 SIP for a luxury car or ₹20,000 for early retirement. The earlier you start, the greater the impact, as even small contributions grow exponentially over time.
SIPs thrive on consistency, not market timing. By investing regularly, you benefit from rupee cost averaging, reducing the impact of market volatility. This calculator helps you set realistic expectations, but success hinges on choosing the right funds. Equity SIPs suit long-term goals (5+ years) with higher returns but volatility, while debt or hybrid funds offer stability for shorter horizons. Diversify across large-cap, mid-cap, and sectoral funds to balance risk and reward. Regularly review your SIPs—stepping up contributions annually (e.g., 10% more each year) can significantly boost your corpus.
Beyond numbers, SIPs are about dreams. Picture owning your dream home, traveling the world, or retiring stress-free. This calculator transforms those visions into actionable plans. As of April 2025, with rising costs and market opportunities, starting an SIP now is a strategic move. Input your details, tweak the variables, and watch your wealth-building journey take shape. Let this tool be your guide to financial freedom, where every rupee invested today paves the way for a richer tomorrow.