SIP Calculator
Calculate returns on your Systematic Investment Plan. See how monthly investments grow over time with compound interest.
Results
How SIP Returns are Calculated
SIP returns use 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 rate of return, and n is the total number of months.
Frequently Asked Questions
What is SIP?
SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds. It helps in averaging the purchase cost and building wealth over time.
How are SIP returns calculated?
SIP returns are calculated using the future value of annuity formula, considering the monthly investment amount, expected rate of return, and investment duration.
Is SIP better than lump sum investment?
SIP helps in rupee cost averaging and reduces the risk of market timing. It is generally recommended for long-term wealth creation, especially for new investors.