SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly (usually monthly) in mutual funds. It helps build wealth through disciplined investing and benefits from rupee cost averaging and the power of compounding.

How is SIP return calculated?

SIP returns are calculated using the compound interest formula: FV = P × ((1+r)^n - 1) / r × (1+r), where P is monthly investment, r is monthly return rate, and n is number of months. Each installment compounds separately from its investment date.

Step-up SIP (or Top-up SIP) is when you increase your SIP amount periodically, usually annually by a fixed percentage. This helps your investments grow with your income and significantly increases your corpus over time.

What returns can I expect from SIP?

SIP returns depend on the mutual fund type: equity funds may give 10-15% annually over long term, debt funds 6-8%, and hybrid funds 8-12%. However, returns are not guaranteed and depend on market conditions.

SIP Calculator

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SIP Returns Calculator

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Investment Details

Monthly SIP Amount ($) Amount to invest each month

Expected Return (% per year) Annual expected return rate

Investment Period Number of years

Step-up SIP (% per year) Annual increase in SIP (0 for regular SIP)

Your SIP Results

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Power of Compounding

Your investments grow exponentially over time as returns generate more returns. Start early and stay invested for best results.

Future Value

Total corpus

Total Invested

Over 10 years

Wealth Gained

Returns earned

Monthly SIP

Per month

Absolute Returns

Total growth

CAGR

Annualized return

Wealth Multiplier

Growth factor

Investment vs Returns

Invested (0%)

Returns (0%)

SIP Summary

Monthly SIP $0

Investment Period 0 years

Expected Return 0% p.a.

Step-up Rate 0% p.a.

                    Total Invested
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Wealth Gained $0

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Wealth Growth Over Time

Invested Amount

Returns Earned

Year-by-Year Growth

Year	SIP Amount	Yearly Investment	Total Invested	Future Value	Gains

SIP Future Value Formula

FV = P × ((1+r)^n - 1) / r × (1+r)

Understanding SIP Investments

What is SIP?

SIP (Systematic Investment Plan) is a disciplined approach to investing where you invest a fixed amount regularly, typically monthly, in mutual funds. It helps average out market volatility through rupee cost averaging and leverages the power of compounding for long-term wealth creation.

Benefits of SIP

Rupee Cost Averaging: Buy more units when prices are low
Disciplined Investing: Regular savings habit
Compounding: Returns generate more returns
Flexibility: Start with small amounts
No Timing Required: No need to time the market

Step-up SIP

Increase SIP amount annually by a fixed %
Aligns with income growth over time
Significantly boosts final corpus
Typical step-up: 5-10% per year
Helps beat inflation over long term

SIP Investment Tips

Start Early: Time in market beats timing
Stay Invested: Don't stop during market dips
Increase SIP: Use step-up feature
Diversify: Invest in different fund types
Review Annually: Track performance regularly