How to Use SIP Calculator
The SIP Calculator estimates how a Systematic Investment Plan grows over time. Enter the periodic contribution, expected annual return, investment years, and SIP frequency. The SIP Calculator then displays the maturity value, total invested principal, gain, and number of periods.
- Enter SIP amount — Choose how much to invest each period.
- Set Annual Return — Use the expected long-term return of the fund or index.
- Pick Term — Number of investment years.
- Pick Frequency — Monthly, quarterly, or yearly contributions.
Formula & Theory - SIP Calculator
The SIP Calculator uses the future value of an annuity due:
FV = P × ((1 + r)^n - 1) / r × (1 + r)| Symbol | Meaning |
|---|---|
| P | Periodic SIP amount |
| r | Periodic rate (annual ÷ periods per year) |
| n | Total number of periods |
| FV | Future value at maturity |
Assumptions and Limits
The SIP Calculator assumes a constant rate, immediate reinvestment of returns, and no taxes or transaction costs. Real-world results depend on market behaviour.
Use Cases for SIP Calculator
The SIP Calculator is useful for:
- Mutual fund SIPs — Long-term wealth creation.
- Index fund and ETF plans — Dollar/rupee cost averaging.
- Retirement savings — Project corpus from monthly contributions.
- Goal-based investing — Solve for the corpus that pays for education or a home.
Run multiple scenarios with the SIP Calculator to see how small changes in rate or term impact long-term wealth.