SIP Calculator

A Systematic Investment Plan (SIP) is an investment method where you invest a fixed amount regularly (daily, weekly, monthly, or quarterly) in mutual funds. This method helps you build wealth over time through rupee cost averaging and compound returns.

Our SIP calculator uses the future value of annuity formula to calculate the maturity amount based on your monthly investment, expected annual return rate, and investment duration. It shows your total invested amount, estimated returns, and overall gain percentage.

The expected return rate depends on the type of mutual fund. Equity mutual funds typically return 12-18% annually over long periods, while balanced funds return 8-12%, and debt funds return 5-8%. Historical averages should be used with caution as past performance doesn't guarantee future results.

Yes, most mutual fund houses allow you to increase, decrease, or pause your SIP at any time. You can also switch between different funds or change your investment frequency.

SIP is generally considered suitable for regular investors as it averages out market volatility (rupee cost averaging), reduces timing risk, and encourages disciplined investing. Lump sum may be better if you have a large amount and believe in current market valuations.

Tax on SIP returns depends on the fund type and holding period. Equity mutual funds held for more than 1 year benefit from long-term capital gains tax (LTCG) treatment. Consult a tax professional for specific advice on your situation.