Question 1

What is a SIP calculator?

Accepted Answer

A SIP (Systematic Investment Plan) calculator estimates what a fixed monthly investment grows into over time. Enter your monthly SIP amount, expected annual return, and investment period, and it shows the amount invested, the estimated returns, and the total corpus at the end.

Question 2

How does the SIP calculator work?

Accepted Answer

Each monthly contribution is compounded at the monthly equivalent of your expected annual return for the months it stays invested, and the results are added up. Earlier contributions compound longer, which is why the corpus grows faster in later years.

Question 3

How much can a monthly SIP grow into?

Accepted Answer

As a reference point: ₹25,000 per month for 10 years at a 12% expected annual return adds up to ₹30 lakh invested and grows to roughly ₹58.1 lakh - nearly half the final value comes from returns rather than contributions.

Question 4

What return rate should I assume?

Accepted Answer

Use a conservative long-term estimate for the asset class you are investing in, not last year's best performance. Long-run Indian equity index returns have historically been in the 10-14% range, but they are not guaranteed - try a couple of rates and plan around the lower result.

Question 5

Can I change my SIP amount later?

Accepted Answer

Yes. SIPs are flexible - you can raise, lower, or pause contributions with your fund house or platform. If you expect your income to grow, increasing the SIP every year builds substantially more wealth; the Step-up SIP calculator shows exactly how much.

Question 6

What happens if I miss a SIP installment?

Accepted Answer

Missing an occasional installment does not attract a penalty on the mutual fund side and will not derail the plan, but the missed month permanently loses its compounding time. Consistency matters more than any single contribution.

SIP Calculator

Frequently asked questions

Keep planning

Step-up SIP Calculator

Lumpsum Calculator

SWP Calculator