VipCalculator
VipCalculator
Use this free SIP Calculator to estimate mutual fund returns easily. Plan monthly investments, tenure, and expected returns online.
Invested Amount:
Est. Returns:
Total Values:
A SIP (Systematic Investment Plan) calculator is an online tool that helps investors estimate the future value of their mutual fund investments made via SIPs. By inputting your regular investment amount, the time horizon, and an expected rate of return, the calculator uses compounding formulas to project your investment corpus.
In effect, it automates the complex math of compounding, making it effortless to see how small, periodic investments can grow over time.
SIPs have become especially popular among younger investors as a disciplined way to build wealth gradually. Note that the calculator gives an estimate it does not account for market volatility, fund fees or exit loads so actual returns may differ.
A SIP (Systematic Investment Plan) is a method of investing in mutual funds where an investor puts a fixed amount of money at regular intervals, usually monthly. Instead of investing a large sum at once, SIP allows you to invest small, manageable amounts consistently over time.
SIP works on the principles of disciplined investing, rupee cost averaging, and compounding. When markets are low, you buy more units, and when markets are high, you buy fewer units this helps reduce the impact of market volatility.
An SIP calculator applies a compound interest formula for an annuity to compute returns based on your inputs. It first converts the annual return rate into a periodic rate (e.g. a monthly rate) to reflect compounding.The core formula used is:
In the above formula
| M | Maturity Amount. |
| P | SIP amount (monthly investment). |
| i | Periodic rate of return (monthly). |
| n | Total number of installments. |
Example suppose an investor wants to invest Rs . 5,000 every month . The tenure of investment is 12 months and he expects an annual rate of return of 12 % .
And now with the help of this SIP calculator formula we calculate.
then the monthly rate of return will be 12 % / 12.
= 1 / 100
= 0.01
FV = 5,000 [ (1+0.01)^ 12-1 ] *(1+0.01) / 0.01
Which gives Rs 64,047 Rs approximately in a year.
It is very easy to use the SIP calculator. I have given some steps below, with the help of these steps you can calculate SIP very easily.
With the help of these steps, you can easily calculate your SIP investment, that too for free.
Using a SIP calculator offers multiple advantages for planning your investments:
In summary, a SIP calculator helps visualize your investment growth, encourages disciplined saving, and aids in choosing amounts and timelines that match your financial goals.
SIPs are considered a savvy way to invest for several reasons. First, they enforce disciplined saving: you commit to investing a fixed sum regularly (usually monthly), which builds a habit and steadily grows your fund of wealth. SIPs also harness rupee-cost averaging. This means you automatically buy more mutual fund units when prices dip and fewer when prices rise, effectively lowering your average purchase cost
As a result, SIPs reduce the risk of poor timing and smooth out market volatility over the long term. Over years and decades, the power of compounding (earning returns on your returns) can significantly boost your corpus.
Financial experts note that SIPs are disciplined, low-risk, and convenient for building wealth gradually. They allow starting with even small amounts and adjusting contributions as income grows, making them accessible to most investors.
| Basis of Comparison | SIP (Systematic Investment Plan) | Lumpsum Investment |
|---|---|---|
| Investment Style | Fixed amount invested at regular intervals | Entire amount invested at one time |
| Market Timing | No need to time the market | Requires correct market timing |
| Risk Exposure | Lower short-term risk due to rupee cost averaging | Higher risk due to full exposure at one market level |
| Impact of Volatility | Market fluctuations are averaged over time | Highly affected by market volatility |
| Capital Requirement | Suitable for small and regular investments | Requires a large amount of capital upfront |
| Return Potential | Stable and consistent long-term returns | Higher returns possible if invested at the right time |
| Investor Discipline | Encourages disciplined investing habits | Depends on investor’s timing and strategy |
| Suitability | Ideal for salaried individuals and beginners | Best for experienced investors with surplus funds |
| Stress Level | Low stress due to automated investments | Higher stress because of timing decisions |
| Best For | Long-term goals like retirement and education | Investors confident about market conditions |
A SIP calculator is useful for anyone planning SIP investments, but especially for these groups:
In short, a SIP calculator benefits anyone who wants to plan investments systematically. It is particularly valuable for people looking to set and meet long-term financial objectives through SIPs.