SIP Calculator

A Systematic Investment Plan (SIP) means investing a fixed amount every month rather than one lump sum, and each month's contribution starts compounding from the moment it's invested. Because earlier contributions have more time to compound, the growth curve isn't linear — it accelerates over the investment period, which is why the total returns can end up larger than the total invested by a wide margin over a long enough timeframe.

Worked example: investing ₹10,000 every month for 10 years at an expected 12% annual return works out to a total invested amount of ₹12,00,000 (10,000 × 120 months), but a projected maturity value of roughly ₹23,23,391 — meaning almost as much again comes from returns as from your own contributions, purely from compounding over the decade.

SIPs spread your investment across market ups and downs (a concept called rupee-cost averaging), buying more units when prices are low and fewer when prices are high, which smooths out the impact of trying to time the market. This makes SIPs a common choice for regular income earners investing a portion of every paycheck, rather than someone with a lump sum to deploy all at once.

Remember this calculator shows a projection at a rate you specify, not a guarantee — real mutual fund and market returns vary year to year and aren't fixed at a steady annual rate the way this formula assumes for simplicity.