Free SIP calculator: see how monthly mutual fund investments grow with compounding, compare systematic investing vs lump sum, and estimate returns and maturity value.
A systematic investment plan (SIP) is a simple way to invest a fixed amount at regular intervals. Instead of trying to time the market, you invest steadily and let compounding do the heavy lifting.
**Who is this for?** Anyone building long-term wealth with mutual funds, ETFs, or index funds - from first-time investors to experienced savers.
**Key concepts:** The calculator uses the future value of an annuity formula, applying your expected annual return to each contribution. You can also compare the same total invested as a one-time lump sum at the start - a classic investing question.
**How to use it:** Set your investment amount and frequency, choose a realistic return for your asset mix, and adjust the period to see how small monthly amounts grow over time.
A SIP (systematic investment plan) is a method of investing a fixed amount at regular intervals, such as monthly or quarterly. It is popular with mutual fund and index fund investors because it builds discipline, spreads purchases over time, and smooths out market volatility.
The calculator applies the future value of an annuity formula: each contribution earns compound interest at your expected annual return for the remaining periods, then all matured contributions are summed into the maturity value.
In steadily rising markets, a lump sum usually ends with a higher value because all money is invested from day one. SIP wins in volatile or declining markets by averaging the purchase price. Many investors use SIP for discipline and lump sums when they receive a windfall.
A common guideline is to invest 10-15% of your income toward long-term goals, starting with an amount you can sustain. Use the calculator with a few monthly amounts to see the difference - consistency matters more than the starting size.
Compounding means your returns start earning returns too. In a SIP, early contributions compound for the longest time, so the bulk of long-term growth comes from reinvested earnings rather than new deposits.