Calculate Mutual Fund Returns
What is a SIP?
A Systematic Investment Plan (SIP) is a disciplined way to invest in mutual funds by contributing a fixed amount at regular intervals (usually monthly). It is ideal for investors who want to build wealth gradually without timing the market.
SIP Calculator Formula
The maturity value of a SIP is calculated using the future value of a series formula:
FV = P × [((1 + r)^n - 1) / r] × (1 + r)
Where:
- FV = Future Value (Maturity Amount)
- P = Monthly Investment
- r = Monthly Interest Rate (Annual rate / 12 / 100)
- n = Total number of months
How to Use the SIP Calculator
- Enter your monthly SIP amount.
- Enter the expected annual return rate.
- Enter the number of years or months you plan to invest.
- Click “Calculate Returns” to see the maturity amount and total profit.
Example SIP Calculation
If you invest ₹5,000 monthly for 10 years at 12% annual returns:
- P = ₹5,000
- r = 0.12 / 12 = 0.01
- n = 10 × 12 = 120 months
Maturity Amount ≈ ₹11,61,695 | Total Investment = ₹6,00,000 | Profit = ₹5,61,695
Benefits of Using Our SIP Calculator
- Instant calculation of maturity value.
- Helps you plan long-term investments.
- Shows total investment vs. profit.
- Accurate formula based on financial principles.
Factors Affecting SIP Returns
- Monthly investment amount
- Annual return rate
- Investment duration
- Market volatility
FAQs About SIP Calculation
Q: Is SIP better than a lump sum investment?
A: SIP helps average out market volatility, making it less risky for beginners.
Q: Can I increase my SIP amount over time?
A: Yes, you can opt for a step-up SIP to increase your investment annually.
Q: Are SIP returns guaranteed?
A: No, mutual fund returns are market-linked and not fixed like FDs.
Summary
Use our SIP Calculator to estimate your mutual fund maturity amount and plan your financial goals better. A disciplined SIP approach can help you build wealth over the long term, even with small monthly contributions.
