SIP Calculator

How SIP Calculations Work

Unlike a lump-sum investment, a SIP involves multiple entry points into the market. This tool uses the Monthly Investment ($), Expected Return (% p.a.), and Duration (Years) to project the maturity value. It calculates both the total amount you have personally invested and the estimated wealth gained through interest or market growth. If you are interested in seeing how your average growth rate looks over the long term, you can also use a CAGR Calculator.

For those focused on building a specific fund for a goal like a house or education, comparing these results with a Savings Calculator can help you decide which financial instrument is best for your risk tolerance.

The Advantage of Consistency

The primary benefit of a SIP is "Rupee Cost Averaging" (or Dollar Cost Averaging). When prices are high, your fixed monthly amount buys fewer units; when prices are low, it buys more. Over time, this often results in a lower average cost per unit compared to trying to "time the market." This tool visualizes the end result of that consistency, showing how even small monthly amounts can grow significantly over 10, 20, or 30 years.

Step-by-Step Instructions

1. Enter the amount you plan to invest every month in the Monthly Investment field.
2. Input the Expected Return. For equity markets, this is often estimated between 8% and 12%, though it is never guaranteed.
3. Select the Duration in years you plan to stay invested.
4. Click Run to see the total invested amount versus the final maturity value.

Frequently Asked Questions