SIP Calculator

Calculate wealth creation through Mutual Funds SIPs

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Please enter amount between 12,000/- to 10,00,00,000/-
Years Please enter investing period between 1 to 30 years
% Please enter return percentage between 8% to 20%

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SIP Calculator

Our SIP Calculator helps you estimate the potential returns on your mutual fund investments through a Systematic Investment Plan (SIP). By entering your investment details, you can determine how much you need to invest regularly to achieve your financial goals. Whether you're planning for a dream home, higher education, or retirement, our SIP calculator simplifies your investment journey.
What is a SIP Calculator?
A SIP calculator is a financial tool that helps investors estimate the returns on their mutual fund investments made through SIPs. It enables users to plan their investments efficiently by providing insights into how much they need to invest periodically to reach a specific financial target. While it provides a close estimate, actual returns may vary based on market performance.
How Does the SIP Return Calculator Work?
The SIP return calculator works on the principles of compound interest. By entering essential details such as the monthly investment amount, duration, and expected rate of return, the calculator projects an approximate wealth accumulation over time. This tool simplifies investment planning by providing quick and accurate estimates based on historical trends.

How Are SIP Investment Returns Calculated?

SIP returns are calculated using the compound interest formula:

Where:

  • M = Maturity amount
  • P = Monthly investment
  • r = Expected return rate per month (annual return/12)
  • n = Number of months

This formula helps estimate the growth of your SIP investments over time, considering the compounding effect that enhances wealth creation.

The compound interest formula used to calculate the maturity amount is:

M = P × [((1 + r)n - 1) / r] × (1 + r)

Where:

  • M = Maturity amount
  • P = Monthly investment (SIP amount)
  • r = Monthly rate of return
  • n = Total number of months

Example of Using SIP Calculator

Let’s say you have a steady monthly income and want to start investing through SIPs. Assume you decide to invest ₹7,500 per month in an SIP that offers an average return of 10% per year. If you wish to calculate how much your investment will grow in 6 years, follow these steps:

  1. Select the ‘Investment Amount’ tab on the SIP calculator.
  2. Enter ₹7,500 under ‘ENTER AMOUNT.’
  3. Input the expected rate of return as 10%.
  4. Set the duration to 6 years.

According to the SIP return calculator, if you invest ₹7,500 monthly for 6 years at a 10% annual return, your total investment of ₹5,40,000 will grow to approximately ₹6,98,000. If the final amount does not meet your financial goals, you may consider increasing the investment period or choosing a fund with a potentially higher return.

Alternative Use Case

Alternatively, you can determine the required SIP amount to reach a specific financial goal. For example, suppose Mr. B plans to save ₹8,00,000 for a home renovation in 3 years. He has identified an SIP with an average annual return of 10%. Here’s how he can use the SIP calculator:

  1. Select the ‘Target Amount’ tab on the ABCD SIP calculator.
  2. Enter ₹8,00,000 as the target amount.
  3. Set the duration to 3 years.
  4. Input the expected return rate of 10% per year.

The calculator will estimate that Mr. B needs to invest approximately ₹20,876 per month to accumulate ₹8,00,000 in 3 years.

How to Use ABCD's Systematic Investment Plan Calculator?

Using our SIP calculator is simple:

  • Enter Target Earnings
    Specify the amount you aim to accumulate.
  • Set Investment Duration
    Choose the number of years you plan to invest.
  • Define Expected Returns
    Specify the anticipated annual return percentage.
  • Get Results
    The calculator instantly provides the estimated monthly SIP amount, total invested amount, and potential wealth gain.

This user-friendly tool helps you make informed investment decisions by offering real-time calculations.

Benefits of Using the SIP Calculator
Accurate Financial Planning Helps set realistic investment goals and timelines. Instant Estimates Get immediate insights into your SIP investments. Flexibility Adjust investment amounts and tenure to see how returns change. Risk Assessment Compare different SIP options before investing. Compounding Insights Understand the impact of long-term investments. With this calculator, you can efficiently strategise your investments and optimise returns.
Start Your SIP with Top-Performing Funds
Investing in high-performing mutual funds through SIPs can help you maximise returns. Explore funds with a consistent track record and align them with your financial goals. Whether you prefer equity, debt, or hybrid funds, our curated list ensures you invest wisely.

SIP Calculator FAQs

What is SIP?

A Systematic Investment Plan (SIP) allows investors to invest a fixed amount regularly in a mutual fund, helping them build wealth over time through disciplined investing.

How to start SIP investment?

You can start an SIP by selecting a mutual fund, completing KYC, choosing the investment amount and frequency, and setting up auto-debit from your bank account.

How can an SIP return calculator help investors?

It estimates potential returns based on investment amount, tenure, and expected rate of return, aiding in financial planning.

What details are required to use a SIP calculator online?

Investment amount, investment period, expected rate of return, and frequency of investment.

What is the Interest Rate of SIP?

SIP does not have a fixed interest rate; returns depend on the performance of the mutual fund selected.

What is the average rate of return on SIP?

Historically, equity mutual funds have delivered 10-15% annualised returns, but it varies based on market conditions.

What is the minimum rate of return in SIP?

Returns are market-linked and can be lower or even negative in the short term, but long-term investments usually yield positive growth.

How do I use a SIP calculator for investment planning?

Enter your investment amount, tenure, and expected return rate to estimate future value and adjust contributions accordingly.

What are the types of SIP?

Types include Regular SIP, Step-up SIP, Flexible SIP, Perpetual SIP, and Trigger SIP, each offering different investment approaches.

Can I get a 15% return on SIP?

While possible with equity mutual funds, returns are not guaranteed and depend on market performance.

What if I invest ₹3,000 a month in SIP for 5 years?

At an assumed 12% annual return, your investment could grow to approximately ₹2.6 lakh.

What is ₹10,000 SIP for 30 years?

Assuming 12% returns, ₹10,000 monthly for 30 years can accumulate over ₹3.5 crore.

How much is ₹5,000 for 5 years in SIP?

At an estimated 12% return, your investment could grow to around ₹4 lakh.

How much is ₹4,000 per month in SIP for 10 years?

With a 12% return, your investment could be worth approximately ₹9.2 lakh.

How to make ₹1 crore in 5 years in SIP?

You’d need to invest around ₹1.2 lakh per month at a 12% return to reach ₹1 crore in 5 years.

Is SIP better than FD?

SIPs in equity funds offer higher return potential but come with market risks, whereas FDs provide fixed, lower returns with safety.

How to choose SIP?

Select based on financial goals, risk appetite, fund performance, and investment horizon.

How much can I invest in a SIP?

There’s no upper limit; you can invest as per your financial capability and goals.

Can an SIP calculator guarantee accurate future returns?

No, it provides estimates based on assumed returns, but actual returns depend on market performance.

Are there any upper limits on SIP investments?

No, you can invest as much as you want in an SIP.

What causes fluctuations in SIP interest rates?

Market volatility, economic conditions, and fund performance impact SIP returns.

How to maximise returns with effective SIP strategies?

Stay invested long-term, increase SIP contributions over time, and choose funds wisely based on goals.

Can I estimate my SIP return online?

Yes, you can use an SIP calculator to get an estimate of potential returns.

Is SIP risk-free?

No, SIP investments are subject to market risks.

DisclaimerThe information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.