SIP Calculator
Calculate the future value of your Systematic Investment Plan (SIP). Enter your monthly investment amount, expected annual return rate, and investment period to see how your regular contributions grow over time through the power of compounding.
SIP Calculator
FAQ
What is a SIP?
A Systematic Investment Plan (SIP) is an investment strategy where you invest a fixed amount at regular intervals (typically monthly) into a mutual fund or other investment vehicle. It helps average out market volatility through rupee/dollar cost averaging.
How does SIP benefit from compounding?
Each monthly installment earns returns, and those returns earn further returns. Over long periods, compounding significantly amplifies growth, meaning early investments contribute disproportionately to the final value.
Is SIP better than lumpsum investing?
SIP reduces timing risk by spreading investments over time. In volatile markets, SIP can outperform lumpsum because you buy more units when prices are low. However, in consistently rising markets, lumpsum investing may yield higher returns.