SIP Calculator
Plan your systematic investment and see wealth growth
Last updated: January 2025
About This Tool
A Systematic Investment Plan (SIP) calculator helps you project how regular, disciplined investments can grow over time. SIP is one of the most effective ways to build wealth through the power of compounding and rupee cost averaging.
What is SIP Calculator?
SIP (Systematic Investment Plan) is an investment strategy where you invest a fixed amount at regular intervals (usually monthly) into mutual funds or other investment vehicles. Instead of trying to time the market with lump-sum investments, SIP automates your investing and averages out market volatility.
How It Works
With SIP, you invest a fixed amount regularly regardless of market conditions. When prices are low, you buy more units; when prices are high, you buy fewer units. This averaging effect (dollar-cost averaging) reduces the impact of volatility and removes emotional decision-making from investing.
Formula
FV = P × [(1 + r)^n - 1] / r × (1 + r)
Future Value
$116,169.54
Wealth gained: 1.94x your investment
Wealth Growth Over Time
Investment Summary
Quick Stats
💡 SIP Tips
- • Start early to maximize compounding
- • Use step-up to match income growth
- • Stay invested through market cycles
- • Review and rebalance annually
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When to Use This Calculator
- 1Starting a long-term investment journey with limited capital
- 2Building retirement savings systematically
- 3Investing without worrying about market timing
- 4Creating disciplined savings habits
- 5Planning for major financial goals like education or home purchase
Pro Tips
- •Start early - even small amounts grow significantly over decades
- •Increase your SIP amount annually as your income grows
- •Stay invested through market downturns - they are buying opportunities
- •Choose low-cost index funds for long-term SIP investments
- •Set up automatic transfers to ensure consistency