SIP Calculator – Systematic Investment Plan Returns with Inflation
Disclaimer: These calculators are for illustrative purposes only and do not guarantee actual returns. The stock market does not have a fixed rate of return, and future returns cannot be predicted with certainty.
What is a SIP Calculator?
A SIP calculator helps you estimate mutual fund returns for a systematic investment plan (SIP). It calculates your expected returns over 10, 20, or even 40 years.
How to Use the SIP Calculator?
Use our mutual fund SIP calculator to check your SIP investment return.
Enter Monthly Investment (₹):
Input the amount you plan to invest every month in a mutual fund SIP.
Select Investment Duration (Years):
Choose investment duration between 5, 10, 20, or 40 years to see long-term wealth growth.
Enter Expected Annual Return (%):
Based on past mutual fund performance, enter an expected SIP return rate (e.g., 12-15%).
Enable Inflation Adjustment (Optional):
Click to adjust SIP returns for inflation, providing a more realistic future corpus value.
Click ‘Calculate’ Button:
The SIP investment calculator will process your inputs and display detailed year-wise growth.
Get Yearly Breakdown & Graphs:
View summary of invested amount, total returns, and inflation-adjusted amount in a clear table & chart.
Plan Your Investment Smartly!
Use the SIP calculator online to optimize your mutual fund SIP strategy for higher returns.
SIP Calculation Formula – How It Works Behind the Scenes
The Systematic Investment Plan (SIP) formula helps calculate the future value of your investments based on monthly contributions, expected returns, and compounding. The formula used in SIP calculations is:
SIP Formula:
Where:
FV = Future Value of the SIP investment
P = Monthly SIP investment amount (₹)
r = Expected monthly return rate = (Annual Rate % / 12) / 100
n = Total number of months (Investment Duration in years × 12)
Example Calculation:
If you invest ₹5,000 per month for 40 years at an expected return of 12% per annum, the calculation is:
Monthly SIP investment amount (P) = ₹ 5,000
Monthly Return (r) = (12 / 12) / 100 = 0.01
Total Months (n) = 40 × 12 = 480
After solving the formula, the final SIP corpus (total investment value) will be ₹5,94,12,101, considering a monthly SIP of ₹5,000, an investment duration of 40 years, and an expected return rate of 12% per annum.
Frequently Asked Questions (FAQ)
What is a SIP Calculator?
A Systematic Investment Plan (SIP) calculator helps investors estimate the future value of their investments in mutual funds based on monthly investment amount, duration, and expected return rate. It provides a detailed year-wise breakdown and allows inflation adjustments for a more realistic estimate.
How does a SIP calculator with inflation work?
Our SIP calculator with inflation adjusts for rising costs, giving a realistic future value.
Can I calculate SIP for 40 years?
Yes! Use our SIP calculator 40 years option to see your investment’s long-term growth.
What is the expected SIP return rate?
The SIP return rate calculator estimates returns based on past mutual fund performance.
Which SIP gives a 40% return?
A 40% return per annum is extremely high and is not typical for mutual funds. SIP investments in equity mutual funds may generate 12-18% annual returns over the long term. For higher returns, you may need to invest in high-risk stocks or alternative assets, which come with significant risks.
How much will ₹1,000 SIP per month grow in 10 years?
If you invest ₹1,000 per month for 10 years at an expected 12% annual return, your SIP corpus will be around ₹2.3 lakh. You can increase the amount or duration to grow your wealth faster.
What will ₹30,000 monthly SIP grow to in 5 years?
A ₹30,000 SIP per month for 5 years at an estimated 12% return will grow to approximately ₹24.6 lakh. Use our SIP calculator to see a detailed year-wise breakdown.
Can I withdraw SIP anytime?
Yes, you can withdraw your SIP investment anytime, but it depends on the type of mutual fund.
Is SIP risk-free?
No, SIP investments are not risk-free. The risk level depends on the type of mutual fund:
Is SIP Better Than FD?
SIP (Systematic Investment Plan) and FD (Fixed Deposit) serve different financial purposes. SIP offers higher potential returns (10-15%) but carries market risk, while FD provides fixed, risk-free returns (5-7%). SIP is ideal for long-term wealth creation, whereas FD is suitable for short-term, stable savings.
How much will ₹5000 SIP per month grow in 5 years?
If you invest ₹5,000 per month for 5 years at an average return of 12% per annum, your final corpus will be approximately ₹4,10,000. You can use our SIP calculator to explore different return rates and investment durations for better financial planning.