Stop trying to time the market or worrying about a big lump-sum payment. Set up a small monthly SIP instead and let compounding do the work. Use this SIP calculator to estimate what a small SIP can grow into over time.
Simply put, a SIP calculator is a financial tool that gives you the future value of a Systematic Investment Plan. Type in what you can set aside every interval, how many years you'll keep at it, and the rate of return you're expecting. The SIP calculator turns that into one number, and that is the amount you might end up with if everything goes according to plan. Think of it as a pair of binoculars looking into your investment’s future. What you assumed was a vague or unattainable peak in the distance might just become an achievable, tangible target, with clear steps to get there.
But know that a SIP calculator has no idea which fund you picked. It grows your money at exactly the rate you typed in, every year, with no bad years in between. The calculator does not account for several external factors that can impact your investments. Real funds don't behave like that. So, read the number as an approximation or a projection and not as a guarantee. A systematic investment plan calculator provides the necessary information and a time horizon to help you make informed decisions.
Whether you have a monthly income or have some extra pocket money, SIP investments are ideal for you. SIPs instil financial discipline, which can help your investments, all thanks to compounding. Now, you can read all about compounding, but it doesn't really sink in for a new investor until the numbers are clear. And that's where a monthly SIP calculator comes in. For a monthly SIP investor, a systematic investment plan calculator helps calculate what your SIP will grow into years down the line. For an investor looking for a particular goal to achieve, the SIP calculator online helps with backtracking via the goal amount to see how much money they will need to invest.
A SIP calculator is particularly beneficial for new investors.
The SIP calculator uses a formula to find the compounded future value (FV) of a SIP, based on the regular investment amount, rate of return and number of instalments.
Here are the three main variables that a mutual fund SIP calculator considers:
Here is the formula: FV = P*[{(1+r)^n-1}/r]*(1+r).
So, a monthly SIP calculator takes into account the time frame for each monthly SIP, compounds each one until the assumed final date of investment to arrive at the cumulative final amount.
A SIP calculator treats each instalment as its own small investment with its own timelines, then adds all of them together. For example, if you plan to invest in SIPs for 20 years, then month one will have 240 months of growth. Month two gets 239. And your last instalment gets one.
After you enter all the variables, you can find the future value of your investment. Alternatively, you can use a goal-based SIP plan calculator to directly add your intended future value and work backwards to calculate any one of the variables.
Example 1:
Adarsh wants to find the amount he has to invest in an equity mutual fund to take a trip abroad worth ₹2,00,000 in July 2030. He inputs the following in the SIP goal calculator: Goal Amount of ₹2,00,000, Monthly Investment Duration of 4 years, Expected Rate of Return of 10% p.a. He will then get his monthly SIP amount, which will meet this particular target, which in this case is a SIP of ₹3,377 per month.
Example 2:
Rahul wants to start a SIP. He fires up a systematic investment calculator online and tries different monthly instalments at the stated annual return, with no increase over time. He finds out that ₹5,000 a month for 25 years means investing ₹15 lakh and finishing near ₹95 lakh. And ₹10,000 a month for 20 years means putting in ₹24 lakh and getting around ₹1 crore. An extra investment of nearly ₹9 lakh gets him just an additional ₹5 lakh in return. And hence Rahul realises the benefit of starting early, even if it's with a lower SIP amount. That’s the kind of visibility and clarity a monthly SIP investment return calculator can give you in no time.
| Monthly SIP | Tenure | Expected return | Total invested | Estimated gains | Maturity value |
|---|---|---|---|---|---|
| ₹10,000 | 20 years | 12% | ₹24,00,000 | ₹75,91,479 | ₹99,91,479 |
| ₹5,000 | 25 years | 12% | ₹15,00,000 | ₹79,88,175 | ₹94,88,175 |
Let us assume that you want to find the cumulative final amount of your monthly SIP of ₹5,000. In the “I’m dropping in” meter, input ₹5,000. Your goal date is 7 years from now, so select 7 years in the “time period” meter. This is a long enough time horizon to assume equity returns of 12% per annum, given historical equity data. Thus, input 12% p.a. in the “expected return” meter. On the right, you will see your total invested amount of ₹4,20,000 and your total returns of ₹2,39,895, making your future value ₹6,59,895.
In the “quick math” section, you can tinker with the SIP calculator with inflation, step up SIP calculator, weekly SIP calculator and more. Go ahead and input your monthly SIP amount, an assumed rate of return and the tenure of your investment. The results might surprise you, all thanks to the magic of compounding.
SIPs don’t necessarily have to be monthly payments. You can choose weekly or daily plans too. Choosing the right plan depends on how often you prefer to invest and how closely you want to track your transactions.
Here’s a quick comparison between the three:
| Particulars | Regular SIP (Monthly) | Weekly SIP | Daily SIP |
|---|---|---|---|
| Investors | Better choice if you receive a fixed amount of money every month. | Better choice for students saving pocket money or freelancers with weekly income. | Better choice for gig workers, students, or anyone looking to start saving a small amount every day. |
| Cost Average | The broadest averaging of the three, since it captures a few price points in a year. | Slightly broader averaging, lying somewhere between monthly and daily SIPs. | Smoothest averaging of all, capturing maximum price points in a year. |
| Transaction Tracking | Just one transaction a month, 12 a year. | Four transactions every month, about 52 a year. | Highest transaction volume of up to 22 every month, about 264 a year. |
| Required Effort | Low: Set up the monthly SIP once and forget about it. | Medium: Simply keep enough balance in your account on the chosen day. | Higher: Requires monitoring account balance every day to avoid penalty charges. |
| Suitable Funds | Better for relatively stable funds like large-cap, ETFs, or flexi-cap investments. | Better for high-beta funds like small-cap, mid-cap and thematic. | Better for volatile funds like micro-cap and small-cap. |
The best way to decide which SIP suits you is to play with numbers using the dedicated monthly, weekly, and daily SIP calculator. It shows how each instalment grows over the investment period based on your choice. Based on the estimated outcome and other factors, you can select your frequency.
Starting a SIP on Millions is simple and takes just a few minutes:
That’s it. SIP is one of the easiest ways to build a habit of investing regularly. If you are starting out, it is best to invest a small amount first in a low-risk fund. Later, as you learn more about investing, you can diversify across asset classes and grow your portfolio steadily.
Monthly SIP plans can start as low as ₹100, depending on the fund. There is no maximum limit to a SIP amount. Start small and educate yourself on the various funds at your disposal. Match these with your goals and, over the long run, create a basket of funds that meet your varied financial goals.
If investing in equity mutual funds, it is better to have a minimum tenure of at least 3 to 5 years to let your investment grow and ride out any market volatility. There is no maximum SIP tenure, but the longer you can hold onto your equity funds, the likelier you are to enjoy the benefits of compounding.
The good thing about equity mutual funds is that there is no real ceiling to the returns you can make. However, it is important to keep expectations realistic and take a look at past market data while making assumptions. For instance, various financial advisors will assume a 12% p.a. return on equity investments over the long run, given historical market data.
This depends on the category of the fund in question, but generally speaking, pure equity mutual fund SIPs do not offer guaranteed returns as they are linked to the stock market. Although there are no guarantees in the stock market, just like in life, there is a lot of data at your disposal to understand the markets.
No, SIP investments are not 100% safe. It is advisable to read up on how the equity markets function and do research on funds before investing any money. You can look for funds with experienced managers and credible AMCs that have consistently beaten the market, to begin with.
Yes, it is a possibility. Hence, it is advisable to choose funds for your SIP with due diligence and an appropriate time horizon for the fund to grow.
The total investment amount itself is not taxable. What is taxable is the profits you earn on the SIP investments after you sell them. For example, equity-oriented funds have a short term capital gains tax of 20% (fund units held for less than a year) and a long term capital gains tax of 12.5% (fund units held for more than one year).
Nothing, your invested amount remains as it is. You can choose to continue paying from the next SIP date or discontinue it, depending on your circumstances and goals.
Yes, you can pause or stop your SIPs at any point without any implications. However, if you choose to redeem your SIP investments, you may have exit load or taxation implications you should consider before hitting the sell button.
The ideal option completely depends on the overall portfolio of the investor and what the goal of the particular investment is. An equity mutual fund SIP, though volatile, stands a better chance to grow your wealth in the long run, whereas a bank fixed deposit offers the safety of capital preservation and guaranteed returns, though at a low growth rate.
After listing down your financial goal, use a SIP calculator to find your target investment amount. Remember to set realistic goals based on market data and filter out fund categories and individual funds. Generally, it is better to back funds run by experienced managers and AMCs that have been through a few market cycles.
Yes, you can set up an SIP from as low as ₹500. SIP doesn't look for large amounts; it looks for consistency.
Yes. The majority of SIP schemes of mutual funds do not need a demat account. One can directly invest through fund houses or through investment applications.
Yes. You can increase your SIP amount whenever you want. To understand the effect of an increased SIP amount, you can use the step-up SIP calculator.
The expense ratio is the fee charged by the fund in managing your investment. Yes, it does have an effect on performance. It reduces your overall return.
There is no change in your SIP. Your investment will continue, and you might even receive additional units at reduced rates.
Short-term loss is possible. However, risk becomes lower in the long term when invested in equity schemes.
SIP is suitable for long-term wealth creation, while bank savings become relatively safer with comparatively lower gains.
SIP can build wealth over time, but it's not a shortcut to overnight riches. Discipline matters more than expectations.
No, there are no charges for starting a SIP on Millions.
You typically need to download the Millions app, create your account, and select a mutual fund, SIP amount, and date. That’s all.
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