SIP Calculator
A Systematic Investment Plan (SIP) allows you to invest a fixed sum in mutual funds at regular intervals (monthly/quarterly). SIPs instill financial discipline and leverage Rupee Cost Averaging, allowing you to buy more units when market prices drop and fewer units when prices rise.
Input Calculation Parameters
Calculation Results
How the Calculation Works
Future Value formula for SIP compounding: FV = P x [{(1+i)^n - 1} / i] x (1+i), where P is monthly deposit, i is monthly return rate (Annual Rate / 12 / 100), and n is total number of monthly deposits.
Worked Example
Here is a step-by-step example calculation for ₹10,000 Monthly SIP @ 12% p.a. for 15 Years:
| Parameter | Value |
|---|---|
| Monthly Sip | ₹10,000 |
| Total Invested | ₹18,000,000 |
| Wealth Gain | ₹32,45,760 |
| Maturity Value | ₹50,45,760 |
Scenario Analysis
Comparing different tenures, interest rates, or investment horizons:
| Scenario Label | Key Metric |
|---|---|
| 10 Years | Invested: ₹12,00,000, Gain: ₹11,23,391, Total: ₹23,23,391 |
| 15 Years | Invested: ₹18,00,000, Gain: ₹32,45,760, Total: ₹50,45,760 |
| 20 Years | Invested: ₹24,00,000, Gain: ₹75,91,479, Total: ₹99,91,479 |
Common Mistakes to Avoid
- Stopping SIPs during market downturns, missing out on cheap unit purchases.
- Expecting guaranteed returns in equity mutual funds (12% is a historical benchmark estimate, not a guarantee).
Frequently Asked Questions (FAQs)
Are SIP returns guaranteed?
No, mutual fund investments are subject to market risks. Historical equity fund returns in India have averaged 12%-15% over 10+ year horizons.
How are equity mutual fund gains taxed in India?
Long Term Capital Gains (LTCG) above ₹1.25 Lakh per financial year are taxed at 12.5% without indexation. Short Term Capital Gains (STCG) held under 1 year are taxed at 20%.
Authoritative Sources & Regulatory References
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