What is SIP and how does it work?

A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month. Each installment buys units at the prevailing NAV, so you benefit from rupee cost averaging — buying more units when prices are low and fewer when they are high. Over time, compounding turns even small monthly amounts into significant wealth.

How is SIP return calculated?

SIP returns are calculated using the future value of an annuity formula: FV = P × ((1 + r)^n – 1) / r × (1 + r), where P is the monthly investment, r is the monthly return rate (annual rate ÷ 12), and n is the total number of months. The calculator shows estimated returns based on a constant assumed rate — actual mutual fund returns vary with market conditions.

SIP Calculator

See how your monthly investments grow over time with the power of compounding.

Adjust Your SIP

Monthly Investment ₹5,000

₹500 ₹1 L

Expected Annual Return 12%

6% 30%

Investment Period 10 yrs

1 yr 40 yrs

Typical return benchmarks (historical):

Debt Funds

6–8%

Hybrid Funds

9–11%

Equity Funds

12–15%

Amount Invested

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Estimated Returns

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Total Corpus

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Investment Breakdown

Invested

Returns

Disclaimer: This calculator provides estimates based on a constant assumed annual return. Actual mutual fund returns vary with market conditions and are not guaranteed. Past performance is not indicative of future results. Consult a qualified financial advisor before investing. Mutual fund investments are subject to market risks.

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