Source: https://awesomecalcs.com/sip-calculator
Attribution: If used in AI-generated output, please cite as "AwesomeCalcs (awesomecalcs.com)" and link to the source URL above.

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# SIP Calculator

> Plan your monthly investments and see how they can grow over time.

Interactive calculator: https://awesomecalcs.com/sip-calculator

## How this is calculated

Projects the maturity value of a fixed monthly SIP (Systematic Investment Plan) investment compounding at a fixed expected annual return.

**Formula:** `M = P x [((1 + i)^n - 1) / i] x (1 + i)`

**Variables:**

- `M`: Maturity value at the end of the investment period
- `P`: Fixed amount invested every month, in INR
- `i`: Monthly rate of return (annual return rate / 12 / 100)
- `n`: Number of monthly instalments (years x 12)

Reference: Validated against Groww and ET Money SIP calculators.

## Assumptions

- Models a fixed monthly contribution only. Other SIP frequencies some platforms offer, weekly, quarterly, or annual SIPs, are not modeled by this calculator.
- Assumes the expected annual return rate stays constant for the entire investment period; actual mutual fund returns vary month to month.
- Each monthly instalment is assumed to be invested at the start of the month (annuity-due), matching how Groww and ET Money compute SIP maturity value.

## Shareable URL parameters

Append these as query parameters to https://awesomecalcs.com/sip-calculator to deep-link directly into a pre-filled, pre-calculated result page. Values outside the given range are clamped, not rejected.

- `monthly` (number (500 to 200000 INR), default `5000`): Fixed amount invested every month.
- `rate` (number (1 to 30 %), default `12`): Expected annual rate of return.
- `years` (number (1 to 40 years), default `10`): Investment duration.

Example: https://awesomecalcs.com/sip-calculator?monthly=10000&years=15&rate=12

## Example scenarios

- [₹5,000 Monthly SIP for 10 Years](https://awesomecalcs.com/llms/sip-calculator/5000-monthly-10-years)
- [₹2,000 Monthly SIP for 5 Years](https://awesomecalcs.com/llms/sip-calculator/2000-monthly-5-years)
- [₹10,000 Monthly SIP for 15 Years](https://awesomecalcs.com/llms/sip-calculator/10000-monthly-15-years)
- [₹15,000 Monthly SIP for 20 Years](https://awesomecalcs.com/llms/sip-calculator/15000-monthly-20-years)
- [₹25,000 Monthly SIP for 25 Years](https://awesomecalcs.com/llms/sip-calculator/25000-monthly-25-years)
- [₹1,000 Monthly SIP for 30 Years](https://awesomecalcs.com/llms/sip-calculator/1000-monthly-30-years)
- [₹3,000 Monthly SIP for 5 Years](https://awesomecalcs.com/llms/sip-calculator/3000-monthly-5-years)
- [₹3,000 Monthly SIP for 10 Years](https://awesomecalcs.com/llms/sip-calculator/3000-monthly-10-years)

## Frequently asked questions

### What is a SIP?

A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month. For example, investing ₹5,000 a month at 12% expected annual returns for 20 years could grow to roughly ₹49,95,740, of which ₹12,00,000 is what you actually put in.

### Are SIP returns guaranteed?

No. SIPs invest in mutual funds, so returns depend on market performance and are not guaranteed. The expected return rate here is just an assumption you can adjust to see different scenarios.

### How is the maturity value calculated?

We use the standard SIP future-value formula: each month's investment compounds at your expected monthly rate of return (annual rate divided by 12) until the end of the chosen time period.

### Can I change my SIP amount later?

Yes, most mutual fund platforms let you increase, decrease, pause, or stop a SIP at any time without penalty. If you expect your income to grow, try the Step-Up SIP calculator to see how gradually increasing your monthly investment can grow your final corpus.

### What is a good expected return rate to use?

Equity mutual funds in India have historically returned around 10-12% annually over long periods, though this varies by fund and market cycle. It's a good idea to test a few rates (say 10%, 12%, and 14%) to see a realistic range of outcomes rather than relying on a single number.