Small monthly habit, compounded.
Monthly investment, expected return, time period. See the corpus and the returns split.
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
- Enter your monthly investment amount in rupees.
- Set your expected annual return rate (typical equity SIP: 10–14%).
- Choose the time period in years for which you'll invest.
- 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:
Example Calculation
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.
Other calculators in the kit.
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