SIP Calculator
Calculate the future value of your Systematic Investment Plan (SIP) investments. Estimate returns, plan your financial goals, and optimize your investment strategy.
What is SIP and Why is it Important?
- Systematic Investment Plan (SIP) is a disciplined investment method that allows individuals to invest a fixed amount in mutual funds at regular intervals. It is important because:
- It facilitates wealth building over time through the power of compounding.
- It reduces the impact of market volatility by averaging the purchase cost.
- It encourages regular saving and financial discipline.
How to Use This Calculator
- Adjust the slider for your Monthly Investment (in rupees).
- Set the Expected Return Rate using the slider (as a percentage).
- Adjust the slider for the Investment Period (in years).
- The calculator will automatically compute the Future Value.
- Click 'Reset' to revert to the default values.
Frequently Asked Questions
How are SIP returns calculated?
SIP returns are determined using the compound interest formula:
FV = P × [(1 + r/n)^(nt) - 1] × (1 + r/n) / r
where P is the monthly investment, r is the expected return rate, n is the number of compounding periods, and t is the investment duration in years.Why is SIP considered better than a lump sum investment?
SIP mitigates risk through rupee cost averaging and allows for disciplined investing without the need for a large initial capital outlay.
Can I modify or stop my SIP investment?
Yes, you can pause, stop, or adjust your SIP contribution at any time based on your financial requirements and goals.