What is rupee-cost averaging in SIP?

Rupee-cost averaging is the process of investing a fixed sum regularly, which naturally leads to buying more mutual fund units when prices are low and fewer units when prices are high. This lowers your average cost per unit over the long run.

How does compounding benefit my investment?

Compounding means you earn interest not only on your principal investment but also on the accumulated interest from previous periods. The longer your money stays invested, the more powerful this compounding effect becomes.

Can I customize the SIP frequency?

Yes. While monthly investments are the most popular, SIPs can also be set up on a weekly, quarterly, or bi-annual basis depending on your cash flow and financial preferences.

Finance

SIP Calculator

Estimate long-term SIP returns instantly with accurate monthly compounding, investment breakdown cards, and a growth chart.

SIP inputs

Enter your monthly SIP plan details

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Monthly InvestmentAmount invested every monthExpected Annual Return (%)Expected rate of return per yearInvestment Duration (Years)Total SIP period in years

Total Investment

₹6,00,000

Your principal over 120 months.

Wealth Gained

₹5,61,695

Estimated returns generated.

Estimated Maturity Value

₹11,61,695

Projected final corpus at maturity.

Growth chart

Projected SIP growth over time

Max value: ₹11.62L

0y5y10yCompounded monthly using SIP formula

Formula note

We use the standard SIP future value formula with monthly compounding: M = P x [((1 + i)^n - 1) / i] x (1 + i), where i is monthly return and n is total months.

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Maximizing Wealth Growth via Systematic Investment Plans (SIP)

A Systematic Investment Plan (SIP) is a disciplined investment approach that allows you to invest a fixed amount of money regularly in mutual funds or equity markets. By utilizing compounding and rupee-cost averaging, SIPs help long-term investors accumulate substantial wealth and achieve their financial goals systematically.

SIPs eliminate the need to 'time the market.' When markets are down, your fixed monthly contribution buys more units; when markets are up, it buys fewer units. Over time, this averages out your investment cost and cushions against volatility while compounding interest multiplies your returns over the years.

How to Use the Tool

Enter your planned monthly investment amount in the input field.
Set the expected annual rate of return (interest rate) and the total investment tenure in years.
View the total amount invested, estimated wealth gain, and projected maturity value.
Analyze the growth chart to see how your portfolio compounds over your tenure.