SIP Calculator
The SIP Calculator calculates exact, real-time domain outputs in active voice. The SIP Calculator computes future wealth creation for mutual fund Systematic Investment Plans using the standard annuity-due formula used by AMFI and Indian asset management companies. It also supports an optional Annual Step-Up % to model increasing your monthly SIP as your salary grows each year.
SIP Calculator Input Parameters & Defaults
| Monthly SIP Investment | 10000 | Amount invested at the beginning of each month. |
| Expected Annual Return (CAGR %) | 12.0 | Projected annualized mutual fund return. |
| Investment Duration (Years) | 15 | Total tenure in years. |
| Annual Step-Up (%) | 10 | Annual percentage increase in your monthly SIP amount. |
SIP Calculator Mathematical Formula
M = P \times \frac{(1 + i)^n - 1}{i} \times (1 + i), \quad i = \frac{r}{1200}SIP Calculator Worked Example
Investing 10,000 per month in an equity mutual fund SIP for 15 years (180 months) at an expected annual return of 12%, with a 10% annual Step-Up comparison.
- Monthly rate i = 12 / 1200 = 0.01; Total months n = 180.
- Standard SIP Maturity M = 10,000 × [((1.01)^180 - 1) / 0.01] × 1.01 = 5,045,760.
- Total Invested = 1,800,000; Wealth Gained = 3,245,760.
- With a 10% Annual Step-Up, Maturity Value jumps to 8,679,154!
Increasing your SIP by just 10% each year aligned with annual salary increments boosts your 15-year maturity corpus by over 71%.
SIP Calculator Glossary of Key Terms
Amount invested at the beginning of each month.
Projected annualized mutual fund return.
Total tenure in years.
Annual percentage increase in your monthly SIP amount.
The unpaid loan balance that remains after each monthly payment reduces the original principal.
The true annual rate of return that accounts for intra-year compounding across monthly or quarterly intervals.
SIP Calculator Topical Map & 104 Semantic Keywords
SIP Calculator Frequently Asked Questions
Q: What is Rupee Cost Averaging in a SIP?
Because you invest a fixed sum every month, your SIP automatically buys more mutual fund units when market NAVs are low and fewer units when NAVs are high, lowering your average cost per unit over market cycles.