Tools/SIP Calculator
SIP Calculator

Small monthly habit, compounded.

Monthly investment, expected return, time period. See the corpus and the returns split.

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What is a SIP?

A Systematic Investment Plan (SIP) is a disciplined way of investing in mutual funds. It lets you invest a fixed amount of money at regular intervals — typically monthly — rather than making a single lumpsum investment.

SIPs help you build the habit of regular saving and benefit from Rupee Cost Averaging: when prices are low you buy more units, when prices are high you buy fewer, which lowers your average cost per unit over time.

How to Use

  1. Enter your monthly investment amount in rupees.
  2. Set your expected annual return rate (typical equity SIP: 10–14%).
  3. Choose the time period in years for which you'll invest.
  4. Read the total corpus, total invested, and estimated returns in the result panel.

Formula Used

The calculator uses the compound interest formula for an ordinary annuity:

M = P × [((1 + i)ⁿ − 1) / i] × (1 + i)

Where M is the maturity (future value), P is the monthly investment, i is the monthly rate (annual rate ÷ 12 ÷ 100), and n is the total number of months (years × 12).

Example Calculation

Monthly investment₹5,000
Expected return12% per year
Time period10 years
Total invested₹6,00,000
Estimated corpus₹11,61,695
FAQ

Frequently asked questions.

What is SIP?

SIP (Systematic Investment Plan) is a method of investing a fixed amount in mutual funds at regular intervals.

How is SIP return calculated?

SIP returns are calculated using the formula: M = P × [{(1 + i)^n – 1} / i] × (1 + i) where P = monthly amount, i = monthly interest rate, n = months.

Is SIP calculator free to use?

Yes, Binary Lab's SIP calculator is completely free with no signup required.

What is a good SIP amount to start with?

You can start SIP with as little as ₹500 per month. Increasing it gradually gives better long-term results.

What is the difference between SIP and lumpsum investment?

SIP invests a fixed amount monthly, reducing market risk through rupee cost averaging. Lumpsum is a one-time investment.

Planning a long-term goal?

Whether it's retirement, a down-payment, or a child's education — send us the goal and we'll model the plan with you.

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