SIP Calculator
Calculate returns on your Systematic Investment Plan.
Understanding SIP (Systematic Investment Plan)
What is SIP?
A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly (monthly, quarterly, etc.) in mutual funds or other investments. It eliminates the need to time the market and builds wealth through disciplined investing and compounding.
SIP vs Lump Sum
SIP Advantage
Dollar cost averaging โ you buy more units when prices are low and fewer when high. Reduces the impact of market volatility.
Lump Sum
Invests full amount at once. Better in rising markets but higher risk if market drops immediately after.
Example: Invest $500/month for 20 years at 10% annual return. Total invested: $120,000. Future value: ~$414,000. Compound growth adds $294,000!
Frequently Asked Questions
What is SIP?
Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly (monthly/quarterly) in mutual funds. It helps average out market volatility and build wealth over time through rupee cost averaging.
How much should I invest via SIP?
Start with what you can comfortably afford monthly. Even $100-500/month can grow significantly over 10-20 years thanks to compounding. The key is consistency.
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What is this tool?
SIP (Systematic Investment Plan) calculator computes the projected value of regular mutual fund investments. Popular in India and growing globally, SIP lets you invest fixed amounts monthly in mutual funds. The calculator shows future value, total amount invested, and estimated returns based on monthly investment, expected annual return rate, and investment period.
How to use
- 1
Enter monthly investment
Input the fixed amount you invest each month.
- 2
Set expected return rate
Enter the expected annual return percentage.
- 3
Choose investment period
Select the number of years you plan to invest.
- 4
View results
See total invested, estimated returns, and future value.
Frequently Asked Questions
What is the minimum SIP amount?
It varies by fund. Many mutual funds allow SIP starting from as low as $10-50 per month. Some premium funds may require $100+. Check with your fund provider for specific minimums.
Is SIP better than lump-sum investing?
SIP is better for volatile markets as it reduces timing risk through dollar-cost averaging. Lump-sum investing may perform better in steadily rising markets. SIP is ideal for working professionals with regular income who prefer disciplined investing.
How does SIP compare to lump-sum investing?
SIP reduces timing risk by averaging your entry price over time, which is especially beneficial in volatile or declining markets. Lump-sum investing puts all money to work immediately, which statistically outperforms SIP about 2/3 of the time in rising markets. For most working people with regular income, SIP is more practical and psychologically comfortable. Consider splitting: invest a lump sum if you have one, and use SIP for ongoing contributions.