Free SIP Calculator - Calculate Mutual Fund Returns India
Plan your wealth creation journey with our advanced SIP calculator. Estimate returns from systematic investment plans instantly.
Investment Breakdown
Principal vs Interest
- Principal₹ 6,00,000
- Interest₹ 5,61,695.38
- 48.4% of total payment is interest · 51.6% principal
- Total payment: ₹ 11,61,695.38
Investment Schedule
| Month | Contribution | Returns | Balance |
|---|---|---|---|
| 1 | ₹ 5,000 | ₹ 50 | ₹ 5,050 |
| 2 | ₹ 5,000 | ₹ 100.5 | ₹ 10,150.5 |
| 3 | ₹ 5,000 | ₹ 151.5 | ₹ 15,302 |
| 4 | ₹ 5,000 | ₹ 203.02 | ₹ 20,505.02 |
| 5 | ₹ 5,000 | ₹ 255.05 | ₹ 25,760.07 |
| 6 | ₹ 5,000 | ₹ 307.6 | ₹ 31,067.67 |
| 7 | ₹ 5,000 | ₹ 360.68 | ₹ 36,428.35 |
| 8 | ₹ 5,000 | ₹ 414.28 | ₹ 41,842.63 |
| 9 | ₹ 5,000 | ₹ 468.43 | ₹ 47,311.06 |
| 10 | ₹ 5,000 | ₹ 523.11 | ₹ 52,834.17 |
| 11 | ₹ 5,000 | ₹ 578.34 | ₹ 58,412.51 |
| 12 | ₹ 5,000 | ₹ 634.13 | ₹ 64,046.64 |
The Power of Compounding: SIP Calculator
Systematic Investment Plan (SIP) is a method of investing in mutual funds where an investor contributes a fixed amount regularly (monthly or quarterly) instead of making a one-time lump sum payment. Our SIP calculator is a sophisticated tool that helps you project the future value of your investments based on expected annual returns and investment duration. It demonstrates the profound impact that consistent investing and compounding can have on wealth creation over the long term.
Why Use an SIP Calculator?
Investing without a target is like sailing without a compass. An SIP calculator provides a roadmap for your financial goals, whether it's saving for a child's education, a dream wedding, or a comfortable retirement. It allows you to see how small, manageable monthly contributions can grow into a substantial corpus over 10, 15, or 20 years. It also helps you understand 'Rupee Cost Averaging', where you buy more units when markets are down and fewer when they are up.
How to Use the SIP Tool
Input these three key variables to see your wealth growth:
- Monthly Investment: The amount you plan to invest every month.
- Expected Return Rate: The anticipated annual percentage return (typically 12-15% for long-term equity mutual funds).
- Time Period: The number of years you intend to stay invested.
The tool immediately calculates the total amount invested, the estimated returns earned, and the total value of your wealth at the end of the period.
Real-World Example
If you invest ₹5,000 per month for 15 years at an expected return of 12%, your total investment will be ₹9 Lakhs. However, due to the power of compounding, your wealth could grow to approximately ₹25.23 Lakhs, meaning you earned ₹16.23 Lakhs in returns alone.
Advantages and Limitations
Advantages:
- Encourages disciplined saving and long-term wealth perspective.
- Visualizes the difference between simple interest and compounding.
Limitations:
- Assumes a fixed rate of return, whereas market returns are volatile.
- Does not account for inflation, which reduces the purchasing power of the future corpus.
Frequently Asked Questions
What is a SIP?↓
SIP stands for Systematic Investment Plan, a method of investing in mutual funds where you invest a fixed amount regularly.
How accurate is this calculator?↓
The calculator provides estimates based on the expected rate of return you provide. Actual market returns may vary.
Can I use this for Lumpsum investments?↓
This specific tool is optimized for monthly SIPs. For one-time investments, use a Lumpsum Calculator.
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