A Systematic Investment Plan (SIP) is an investment route offered by mutual funds where one invests a fixed amount periodically (usually monthly) instead of a lump sum.

Compound Annual Growth Rate (CAGR) measures the geometric progression ratio that provides a constant rate of return over the time period, representing the annual growth of your SIP.

SIP Calculator

Q: How is SIP return calculated?

SIP returns are computed using the future value formula: M = P × ({[1 + i]^n - 1} / i) × (1 + i), where P is monthly investment, i is monthly return rate, and n is number of months.

Q: Is SIP better than FD?

SIPs invest in mutual funds, which carry market risks but have historically generated higher inflation-beating returns (10-15%) compared to Fixed Deposits (FDs) which offer guaranteed but lower returns (5-7%).

Q: Can I stop SIP anytime?

Yes, investors can stop or pause their SIP installments at any time without penalization or locked-in constraints on open-ended funds.

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Calculate the future value of your Systematic Investment Plan (SIP) investments instantly. Adjust monthly contributions, expected rate of return, and tenure to visualize your wealth growth.

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SIP Investment Parameters

Monthly Investment

Expected Return Rate (% p.a.)

Time Period (Years)

Yrs

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How to Use the SIP Calculator

Determine your future returns using systematic mutual funds investments:

Adjust the Monthly Investment slider to define how much capital you invest each month.
Drag the Expected Return Rate slider representing the expected compound growth per year.
Specify the investment Time Period in years.
Click Calculate Returns to evaluate wealth gain metrics and analyze growth graphs.

How SIP Returns are Calculated (Formula)

The maturity value of a periodic systematic plan is computed compounding monthly:

M = P × ({[1 + i]^n - 1} / i) × (1 + i)

M = Maturity Value Amount

P = Monthly investment amount

i = Monthly interest rate (Annual Rate / 12 / 100)

n = Total number of monthly installments (Years × 12)

Frequently Asked Questions

What is SIP?

A Systematic Investment Plan (SIP) is a method of investing a fixed sum in mutual funds at regular intervals. It helps compound wealth systematically and eliminates the need to time the market.

How is SIP return calculated?

SIP returns are calculated using a compound future value formula, assuming the monthly investments compound continuously. Our tool computes calculations with absolute precision up to the last decimal point.

Is SIP better than FD?

Mutual fund SIPs carry market risks but offer historically higher returns (typically 12-15% over the long term) compared to Fixed Deposits (guaranteed 5-7%). SIPs compound your money faster over multi-year periods.

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What is CAGR in SIP?

CAGR stands for Compound Annual Growth Rate. It represents the annual rate of return that would be required for an investment to grow from its initial balance to its final balance, assuming the investment compounded annually.

Can I stop SIP anytime?

Yes, you can pause or stop your SIP investments at any point without fees. Open-ended mutual funds allow easy redemption of units at current net asset values (NAV).

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