SIP Calculator
Estimate the future value of your investments.
Calculation Logic
The calculator uses two different formulas based on your selection.
SIP (Systematic Investment Plan)
The future value of a SIP is calculated using the formula for a growing annuity:
FV = P × [((1 + i)t - 1) / i] × (1 + i)
- FV: Future Value
- P: Monthly Investment
- i: Monthly Interest Rate (Annual Rate / 12 / 100)
- t: Total Number of Months (Years × 12)
Lumpsum (One-Time Investment)
The future value of a Lumpsum investment is calculated using the standard compound interest formula:
FV = P × (1 + i)n
- FV: Future Value
- P: Lumpsum Principal Amount
- i: Annual Interest Rate (Annual Rate / 100)
- n: Total Number of Years
Invested Amount:
This is the total principal amount you've invested.
Monthly Investment (P) × Total Months (t)
Estimated Returns:
This is the wealth you've gained through compounding.
Future Value (FV) - Invested Amount
About This Tool
This Systematic Investment Plan (SIP) calculator is a high-graphics tool designed to help you visualize your investment growth over time. It's built for planning regular, recurring investments.
- Interactive Sliders: Easily adjust your monthly investment, expected return rate, and investment period to see their impact in real-time.
- Dynamic Doughnut Chart: The chart provides a clear, visual breakdown of your total invested amount (Principal) versus your estimated returns (Wealth Gained).
- Instant Projections: Get immediate feedback on your future value, total investment, and estimated gains, helping you make informed financial decisions.
Frequently Asked Questions (FAQs)
What is a SIP?
A SIP (Systematic Investment Plan) is a method of investing in mutual funds where you invest a fixed amount of money at regular intervals (e.g., monthly). It promotes disciplined investing and benefits from rupee cost averaging.
What is a Lumpsum investment?
A Lumpsum investment is a one-time investment of a significant amount of money into a fund or security. Unlike a SIP, you are not making regular contributions.
Is the "Expected Annual Return" guaranteed?
No. The return rate is an assumption. Mutual fund investments are subject to market risks, and actual returns can vary. This calculator is for illustrative purposes only.
What is the "compounding effect"?
Compounding is when your investment's earnings are reinvested to generate their own earnings. The chart visualizes this by showing how your "Wealth Gained" (the green section) can grow to be larger than your "Principal Invested" over long periods.