SIP Calculator
Estimate the future value of your systematic investments. Plan your monthly/quarterly SIPs and see the power of compounding.
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly (monthly/quarterly) in mutual funds. It instills financial discipline and harnesses the power of rupee cost averaging and compounding.
How to Use the SIP Calculator?
- Investment Amount: Enter the amount you wish to invest per period (NPR 500 – 1,00,000).
- Expected Annual Return: Choose an expected rate of return (1% to 30%). For equity funds, 12-15% is typical.
- Investment Period: Select the number of years you plan to stay invested (1 to 30 years).
- Frequency: Choose monthly, quarterly, semi-annually, or annually.
The calculator instantly shows:
- Total Invested: The sum of all your contributions.
- Estimated Returns: The capital gains earned.
- Maturity Amount: The final corpus (invested + returns).
Benefits of Using a SIP Calculator
- Goal Planning: Adjust variables to see if you can reach your target corpus.
- Compare Scenarios: Try different amounts, frequencies, or return rates.
- Understand Compounding: Visualise how your money grows over time.
Formula Used for SIP Calculation
The maturity amount is calculated using the future value of an annuity due formula:
M = P × [ ((1 + r)^n - 1) / r ] × (1 + r)
Where:
M = Maturity amount
P = Periodic investment
r = Periodic rate of return (annual return / periods per year / 100)
n = Total number of periods (years × periods per year)
Frequently Asked Questions (FAQ)
Is SIP better than lump sum?
SIP reduces the risk of market timing and is ideal for regular income earners. Lump sum may work when markets are undervalued.
Can I withdraw my SIP anytime?
Yes, open-ended mutual funds allow partial or full withdrawal at any time, but staying invested longer maximizes returns.
What is the minimum SIP amount?
Most mutual funds allow SIPs starting from ₹500 or NPR 500 per month.
Are the calculator results guaranteed?
No, the results are estimates based on assumed returns. Actual market returns may vary.
Start Your SIP Journey Today
Use the calculator above to set realistic goals. Once you have a target amount, consult a financial advisor or a registered mutual fund distributor to begin your SIP. Remember, time in the market beats timing the market!