SIP Calculator
Developed by Hemant Parashar, B.Sc.Calculate estimated wealth growth and maturity values for monthly mutual fund SIP investments.
Mutual Fund Disclaimer
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully. Estimated returns do not represent guarantees of future performance.
SIP Investment Details
Investment Projections
How to Use the SIP Calculator
This Systematic Investment Plan (SIP) calculator helps you project the future maturity value of regular mutual fund investments. Follow these instructions to compute your results accurately:
- Enter your monthly investment amount in Rupees (₹).
- Select an expected annual compounding interest/return rate (typically 10-15% for long-term equity mutual funds in India).
- Provide your target investment horizon in years.
Mathematical Formulas & Compounding Principles
The maturity wealth calculation uses the future value of an annuity due formula:
Where:
- M: Maturity wealth value.
- P: Monthly investment amount.
- i: Monthly interest rate (calculated as:
Annual Rate / 12 / 100). - n: Total number of monthly contributions (years * 12).
Frequently Asked Questions (FAQ)
Q: What is the difference between SIP and lumpsum?
A: A SIP involves investing a fixed sum of money at regular intervals (usually monthly), helping average out purchase costs. A lumpsum is a one-time single investment of capital.
This tool was developed and verified by Hemant Parashar, B.Sc. Graduate and part-time blogger, to provide free, high-accuracy mathematical resources for educational use.