🍀
InnocentInvestor

SIP Calculator.

Calculate compounding returns of your Systematic Investment Plan (SIP) in mutual funds. Adjust monthly contributions, interest rate, duration, and set annual step-up values.

📈 SIP Returns Scenario

Monthly Contribution₹10,000
Expected Return Rate (p.a.)12%
Investment Duration15 Years
Annual Step-Up GrowthPREMIUM0%
💡

Compounding Leverage: Over 15 years, your total maturity value increases to ₹50,45,760. Compounded earnings account for 64% of your total corpus.

Total Corpus₹50,45,760
Invested Capital (36%)₹18,00,000
Interest Wealth Gained (64%)₹32,45,760

Compounding Milestones

HorizonInvestedWealth GainTotal Value
Year 1₹1,20,000₹8,093₹1,28,093
Year 5₹6,00,000₹2,24,864₹8,24,864
Year 10₹12,00,000₹11,23,391₹23,23,391
Year 15₹18,00,000₹32,45,760₹50,45,760

What is a Systematic Investment Plan (SIP)?

A Systematic Investment Plan (SIP) is an investment channel provided by mutual funds, allowing you to invest a fixed amount of money regularly (e.g., weekly, monthly, or quarterly) into a chosen scheme, rather than making a one-time lump-sum deposit. It helps instil financial discipline and leverages rupee cost averaging.

How SIP Compounding Works

When you set up an SIP, your capital buys units of the mutual fund at the current Net Asset Value (NAV). If the market goes down, your fixed monthly amount buys *more* units; if the market goes up, it buys *fewer* units. Over long horizons, this averages out the cost of acquisition, protecting you from having to "time the market."

The Power of Step-Up SIP

A **Step-Up SIP** or Top-up SIP allows you to increase your monthly investment amount by a fixed percentage (e.g., 10%) every year, matching your salary hikes. Stepping up your investments significantly amplifies the speed of wealth compounding, reducing the years needed to reach financial retirement targets.

Formula for SIP Future Value

FV = P × [ ((1 + i)^n - 1) / i ] × (1 + i)
P = Monthly investment amount i = Monthly interest rate (expected annual rate / 12 / 100) n = Total number of payments (years × 12)