About the SIP calculator
A SIP (Systematic Investment Plan) calculator projects how much wealth your regular monthly investments could grow into. It accounts for monthly compounding at your expected rate of return, so you can plan goals like a house, education or retirement with confidence.
The formula behind it
We use the future value of an annuity-due (investments made at the start of each month):
FV = P × (((1 + i)ⁿ − 1) / i) × (1 + i)
- P - monthly investment
- i - monthly rate of return (annual ÷ 12 ÷ 100)
- n - total number of monthly instalments
SIP vs lumpsum
A SIP spreads investment over time, smoothing out market ups and downs through rupee-cost averaging. A lumpsum invests everything at once and can outperform when markets rise steadily. Use the toggle above to compare both.
Why starting early matters
Thanks to compounding, time matters more than amount. Starting a modest SIP a few years earlier can dramatically increase your final corpus - the returns themselves start earning returns.