SIP Calculator
Calculate returns on Systematic Investment Plans (SIPs). Perfect for mutual fund SIP investments, long-term wealth creation, and financial planning with step-up SIP options.
SIP Type & Strategy
Investment Details
Returns & Market
SIP Schedule & Fund Type
Goal Planning
SIP Projection Results
Ready to Calculate
Enter your SIP details and click "Calculate SIP Returns"
Quick SIP Examples
SIP vs Lump Sum
Example: $12,000 investment
SIP Success Tips
- Start early for maximum compounding
- Increase SIP amount annually (Step-up)
- Stay invested for long term (5+ years)
- Don't stop SIP during market dips
- Review and rebalance annually
Historical Returns by Market
Fund Risk Levels
What is a SIP Calculator?
A SIP (Systematic Investment Plan) calculator is a specialized financial tool that helps investors calculate the potential returns on their regular mutual fund investments. This advanced calculator supports various SIP strategies including regular SIPs, step-up SIPs, flexible SIPs, and goal-based investing across different global markets and currencies.
Our comprehensive SIP calculator goes beyond basic calculations to include market-specific returns, inflation adjustments, tax implications, step-up options, and goal planning. It provides detailed year-by-year projections and helps investors understand the power of disciplined, regular investing for long-term wealth creation.
How to Use This SIP Calculator
Our calculator makes SIP planning simple and comprehensive. Follow these steps to analyze your SIP investment potential:
- Select SIP Type: Choose between Regular SIP, Step-up SIP, Flexible SIP, or Goal-based SIP.
- Enter Investment Details: Input monthly SIP amount, investment period, and expected returns.
- Select Market & Currency: Choose your country/market and currency for accurate calculations.
- Configure Options: Set investment frequency, fund type, inflation, and tax rates.
- Plan Goals: For goal-based SIP, enter target amount and time horizon.
- Calculate: Click "Calculate SIP Returns" to instantly see your investment projection.
- Analyze Results: Review future value, wealth created, growth chart, and yearly projections.
Types of SIPs Explained
Regular SIP
Fixed amount invested at regular intervals (usually monthly). This classic SIP strategy provides discipline, rupee-cost averaging, and long-term wealth creation. Perfect for beginners and consistent investors looking for steady growth.
Step-up SIP
SIP amount increases annually by a fixed percentage (typically 10-20%). This smart strategy helps investors increase investments as income grows, accelerating wealth creation through enhanced compounding.
Flexible SIP
Variable investment amounts based on market conditions or investor's discretion. Allows increasing investments during market dips and reducing during highs, potentially enhancing returns through tactical investing.
Goal-based SIP
SIP investments targeted toward specific financial goals (retirement, education, home purchase). Calculates required SIP amount to reach target corpus within specified time frame.
Why Invest Through SIP?
Systematic Investment Plans offer significant advantages for long-term wealth creation:
Rupee Cost Averaging
Buy more units when prices are low, fewer when high, reducing average cost.
Financial Discipline
Automates investing, ensuring regular contributions regardless of market conditions.
Power of Compounding
Regular investments maximize compounding effect over long periods.
Affordability
Start with small amounts, making investing accessible to everyone.
The Power of SIP: Real Examples
| Monthly SIP | Investment Period | Expected Return | Total Invested | Wealth Created | Final Corpus |
|---|---|---|---|---|---|
| $100 | 30 years | 12% | $36,000 | $279,581 | $315,581 |
| $500 | 20 years | 12% | $120,000 | $377,320 | $497,320 |
| $1,000 | 15 years | 15% | $180,000 | $570,273 | $750,273 |
| $2,000 | 10 years | 10% | $240,000 | $154,620 | $394,620 |
SIP Calculation Formulas
Future Value of SIP Formula
FV = Future value
P = Monthly investment amount
r = Monthly interest rate (annual ÷ 12)
n = Total number of payments (years × 12)
For Step-up SIP:
FV = P × [((1 + r)n - (1 + g)n) ÷ (r - g)] × (1 + r)
where g = annual step-up rate
XIRR (Extended Internal Rate of Return)
Rupee Cost Averaging Example
Without SIP (Lump Sum)
- Invest $12,000 at NAV $100
- Units bought: 120
- Average cost: $100
With SIP ($1,000/month)
- Month 1: NAV $100 → 10 units
- Month 2: NAV $80 → 12.5 units
- Month 3: NAV $120 → 8.33 units
- Average cost: $94.74 (5.26% lower)
SIP in Different Markets
United States
- Popular: 401(k), IRA, Brokerage SIPs
- Average Returns: 8-10% (S&P 500)
- Minimum SIP: $50-$100
- Tax: Long-term capital gains: 0-20%
- Platforms: Vanguard, Fidelity, Charles Schwab
India
- Popular: Mutual Fund SIPs
- Average Returns: 10-12% (Nifty 50)
- Minimum SIP: ₹500 ($6)
- Tax: LTCG: 10% over ₹1 lakh
- Platforms: Zerodha, Groww, Kuvera
Europe/UK
- Popular: ETFs, Index Funds
- Average Returns: 7-9% (FTSE 100)
- Minimum SIP: £50-£100
- Tax: ISA accounts tax-free
- Platforms: Hargreaves Lansdown, Vanguard UK
Frequently Asked Questions (FAQ)
What is the minimum amount for SIP?
Minimum SIP amounts vary by country and platform: India: ₹500 ($6), USA: $50-$100, UK: £50-£100, Singapore: SGD 100, Australia: AUD 100. Many platforms now offer micro-investing options as low as $5. The key is to start with whatever amount you can afford consistently. A $100 monthly SIP at 12% for 30 years grows to over $315,000. Our calculator shows how even small amounts can create significant wealth over time through compounding.
Is SIP better than lump sum investment?
SIP and lump sum serve different purposes. SIP provides rupee-cost averaging, discipline, and reduces timing risk. Lump sum works better if you have a large amount to invest at market lows. Historically, lump sum beats SIP about 67% of the time because money is invested earlier. However, SIP reduces volatility and psychological stress. For most investors, a combination works best: invest lump sums when available plus regular SIPs. Our calculator lets you compare both strategies.
What returns should I expect from SIP?
Expected SIP returns depend on asset class: Equity funds: 10-15%, Hybrid funds: 8-12%, Debt funds: 6-9%, Index funds: Market returns minus fees. Historical averages: S&P 500: 10%, Nifty 50: 12%, FTSE 100: 8%. For planning, use conservative estimates: 10-12% for equity, 7-8% for balanced. Remember, past performance doesn't guarantee future returns. Our calculator lets you test different return scenarios to plan realistically.
When should I start a SIP?
The best time to start SIP was yesterday; the second best is today. Starting early maximizes compounding. Example: Starting a $500 monthly SIP at age 25 vs 35: At 12% for 40 years (age 65), starting at 25 yields $5.8 million vs $1.7 million starting at 35. That's $4.1 million difference for just 10 years! Even if you can only afford a small amount, start now and increase as income grows. Our step-up SIP calculator shows how increasing contributions annually accelerates wealth.
Should I stop SIP when markets fall?
Absolutely not! Continuing SIP during market downturns is crucial for rupee-cost averaging. When markets fall, your fixed SIP amount buys more units, lowering your average cost. This enhances returns when markets recover. Example: If you stop SIP during a 30% market correction, you miss buying units at discounted prices. Successful investors continue or even increase SIP during downturns. Discipline is key to SIP success.
How does step-up SIP work?
Step-up SIP automatically increases your investment amount annually by a fixed percentage (typically 10-20%). Example: $1,000 monthly SIP with 10% annual step-up. Year 1: $1,000/month, Year 2: $1,100/month, Year 3: $1,210/month, etc. This aligns with salary increases and accelerates wealth creation. A 20-year $1,000 SIP at 12% yields $989,000. With 10% step-up, it yields $1.9 million - almost double! Our calculator shows the dramatic impact of step-up SIP.
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