SIP Calculator
Systematic Investment Plan
SIP (Systematic Investment Plan) is a disciplined approach to investing in mutual funds where you invest a fixed amount regularly. Our free SIP calculator helps you determine the monthly investment needed to reach your financial goals through the power of compounding and rupee cost averaging.
Calculate your monthly SIP investment and build wealth systematically
Adjust the sliders to see your SIP calculation
Input Values:
Goal Amount (FV): ₹1,000,000
Investment Period: 10 years
Expected Return: 12% per annum
Calculated Values:
Monthly Rate (r): 0.0100
Total Months (n): 120
Monthly SIP Required: ₹4304.05
- •The formula assumes monthly compounding of returns
- •Returns are calculated based on the expected annual rate
- •Actual returns may vary based on market conditions
- •This calculator provides estimates for planning purposes
- •Consider inflation while setting your financial goals
- •Consult a financial advisor for personalized advice
What is SIP?
SIP (Systematic Investment Plan) is a disciplined approach to investing in mutual funds where you invest a fixed amount regularly at predetermined intervals, typically monthly. It's one of the most effective ways to build wealth over time through the power of compounding and rupee cost averaging.
🎯 Key Benefits
Rupee Cost Averaging
Reduces impact of market volatility by averaging purchase costs
Disciplined Investing
Builds long-term wealth through regular, consistent investments
Power of Compounding
Maximizes returns through reinvestment of earnings
Flexibility
Flexible investment amounts and tenure options
💡 Why Choose SIP?
No Market Timing
No need to time the market or predict price movements
Low Minimum Investment
Start with as low as ₹500 per month
Automatic Investment
Removes emotional bias through automated investing
Tax Benefits
Tax benefits under Section 80C for ELSS funds
🔄 How SIP Works
When you invest through SIP, you buy more units when prices are low and fewer units when prices are high. This averaging effect helps reduce the overall cost of investment and potentially increases returns over the long term.
Market High
Fewer units purchased with same amount
Market Low
More units purchased with same amount
Long Term
Average cost reduces, returns optimize
💰 SIP Investment Tips
- •Start early to maximize compounding benefits
- •Stay consistent with your monthly investments
- •Increase SIP amount annually with income growth
- •Choose funds based on your risk tolerance
- •Review and rebalance portfolio periodically
- •Don't stop SIP during market downturns
What is a SIP?
SIP (Systematic Investment Plan) is a method of investing in mutual funds where you invest a fixed amount regularly at predetermined intervals, typically monthly. It helps in building wealth through disciplined investing and rupee cost averaging, making it easier to achieve long-term financial goals.
Is SIP better than lump sum investment?
SIP offers advantages like rupee cost averaging, disciplined investing, and reduced market timing risk. It's generally better for regular investors who want to invest gradually and don't have a large sum available upfront. Lump sum can work better in consistently rising markets, but requires market timing skills and a substantial amount to invest at once.
Can SIP make you rich?
SIP can help build substantial wealth over time through the power of compounding. Starting early, staying consistent, and investing for the long term (10+ years) can potentially create significant wealth. However, returns depend on market performance, fund selection, and the amount invested. It's a proven method for wealth creation when done consistently over long periods.
What is the minimum SIP amount?
Most mutual funds allow SIP investments starting from ₹500 per month. Some funds may have higher minimums like ₹1,000 or ₹2,500. You can start small and gradually increase your SIP amount as your income grows. The key is to start early and stay consistent rather than waiting to invest a larger amount.
Are there tax benefits with SIP?
SIP investments in ELSS (Equity Linked Savings Scheme) mutual funds qualify for tax deduction up to ₹1.5 lakh under Section 80C of the Income Tax Act. Additionally, long-term capital gains (after 1 year) on equity funds are tax-free up to ₹1 lakh per financial year. This makes SIP a tax-efficient investment option.
When should I stop my SIP?
You should continue your SIP until you reach your financial goal or need the money for the intended purpose. Stopping SIP during market downturns can hurt long-term returns. Consider stopping only when you've achieved your target corpus, need to reallocate investments, or face genuine financial constraints. The longer you stay invested, the better your returns typically become.
💡 Pro Tip
Start your SIP journey early, even with a small amount. The power of compounding works best over longer periods. You can always increase your SIP amount as your income grows. Remember, consistency is more important than the amount when starting out. Set up automatic debits to ensure you never miss a SIP installment.
Related Finance Calculators
EMI Calculator
Calculate your loan EMI for home, car, or personal loans with detailed amortization schedule.
FD Calculator
Calculate returns on your fixed deposit investments with compound interest calculations.
Lumpsum Calculator
Calculate returns on one-time lumpsum investments and compare with SIP returns.
Goal Calculator
Plan your investments for specific financial goals like retirement, education, or house purchase.
Tax Calculator
Calculate your income tax liability and plan tax-saving investments effectively.
Retirement Calculator
Plan your retirement corpus and calculate how much you need to invest for a comfortable retirement.