SIP Calculator - Systematic Investment Plan Returns

What is a SIP?

A Systematic Investment Plan (SIP) is a disciplined way to invest a fixed amount regularly - usually monthly - into mutual funds. Instead of timing the market, you invest steadily across market ups and downs, which averages your purchase cost over time (rupee-cost averaging). SIPs make long-term wealth creation accessible to everyone in Salem, even with small monthly amounts.

Use the SIP calculator above to estimate how much your regular investments could grow over your chosen horizon.

How a SIP Grows Your Wealth

The real power of a SIP is compounding - your returns are reinvested and go on to earn further returns. The estimated future value is calculated as:

M = P × (((1+i)ⁿ − 1) / i) × (1+i)

Where P is your monthly investment, i is the expected monthly return (annual rate ÷ 12 ÷ 100) and n is the total number of months. The longer you stay invested, the more dramatic the compounding effect becomes.

Benefits of Investing Through a SIP

• Start small - begin with an affordable monthly amount and increase it over time.
• Rupee-cost averaging - buying across market cycles smooths out volatility.
• Power of compounding - long-term investing can turn small sums into a large corpus.
• Disciplined habit - automated monthly investing keeps you consistent.
• Flexibility - pause, increase or redeem as your goals change.