Calculate returns on your Systematic Investment Plan using SIP Calculator

## Understanding SIP:

A Systematic Investment Plan (SIP) allows you to invest small amounts periodically (weekly, monthly, quarterly) into a mutual fund. It’s a disciplined and passive approach for retail investors to build wealth long-term through compounding. Regular investments also reduce the impact of market volatility.

## How to Use the SIP Calculator:

- Enter
**Monthly Investment Amount (Rs.)** - Also
**Investment Period**input - Lastly give
**Expected Annual Returns (%)**

SIP return calculator works on a set rules. Which you earn on some Expected Annual Returns percentages on Monthly Investment for a certain time.

Let’s take an example to understand the workings of a SIP Calculators work with this formula.

FV = P [ (1+i)^n-1 ] * (1+i)/i

FV = Future value or the amount you get at maturity.

P = Amount you invest through SIP

i = Compounded rate of return

n = Investment duration in months

r = Expected rate of return

Suppose you invest Rs 5,000 per month for a tenure of 36 months.

You expect a 10% annual rate of return (r).

You have i = r/100/12 or 0.008333.

FV = 5000 * [(1+0.008333) ^36 – 1] * (1+0.008333)/0.008333

You will get Rs 2,10,650 at maturity.

## FAQs

### What is Investment Amount?

The “Monthly Investment SIP Amount” refers to the sum of money that an investor contributes on a regular basis, typically on a monthly basis, towards an investment.

### What is Rate of Return?

The “Expected Rate of Return” refers to the anticipated percentage increase in the value of an investment over a specified period.

### What is XIRR?

XIRR stands for “Extended Internal Rate of Return.” It’s a financial metric used to calculate the annualized rate of return for investments with irregular cash flows.

### What is Profit Percentage?

Profit percentage in SIP typically refers to the percentage increase in the value of the SIP investment over a certain period, often expressed annually.

### What is tenure?

The “tenure” of a Systematic Investment Plan (SIP) refers to the duration or period over which an investor continues to make regular investments in the chosen mutual fund scheme.

### Which types of SIPs available

SIPs that you can invest in – **regular SIP, flexible SIP, top-up SIP, trigger SIP, and perpetual SIP**

Also Use mf calculator