Introduction
SIP (Systematic Investment Plan) is a disciplined approach to investing fixed amounts monthly in mutual funds. Rupee cost averaging reduces market timing risk, making SIP ideal for salaried investors building long-term wealth in India.
Numverto SIP Calculator projects future value based on expected annual returns, showing year-by-year growth. Pair with our SIP guide and Compound Interest Calculator.
SIP Formula
M = P × ((1 + i)n – 1) / i × (1 + i), where P = monthly investment, i = monthly rate (annual rate ÷ 12 ÷ 100), n = total months.
Step-by-Step Examples
₹10,000/month at 12% for 10 years
Total invested: ₹12,00,000. Estimated maturity: ₹23,23,391. Returns: ₹11,23,391.
₹5,000/month at 15% for 20 years
Total invested: ₹12,00,000. Estimated maturity: ₹75,79,775. Power of compounding over long tenure.
Real-Life Applications
- Mutual fund investment planning for salaried professionals
- Retirement corpus estimation (PPF, NPS alternatives)
- Child education fund projection
- Financial goal setting — house, car, wedding
- Comparing SIP vs lump sum investment scenarios
Advantages of Using This SIP Calculator
- Year-by-year growth breakdown table
- Instant recalculation as inputs change
- Indian rupee formatting with lakh/crore commas
- No signup or data collection required
- Works alongside compound interest tool for comparison
Common Mistakes to Avoid
- Expecting fixed returns — mutual fund returns vary with market
- Stopping SIP during market downturns (best time to accumulate)
- Not accounting for exit load and expense ratio
- Comparing SIP returns with FD returns without adjusting for risk
- Ignoring tax on equity gains (LTCG above ₹1.25 lakh taxed at 12.5%)