SIP Calculator
Calculate the returns on your Systematic Investment Plan (SIP) with our easy-to-use calculator.
Adjust Parameters
Shows inflation-adjusted returns
Investment Details
How to Calculate SIP Returns
The future value of your SIP investments is calculated using the following formula:
M = P × ({[1 + i]^n - 1}/i) × (1 + i)
Where:
- M = Maturity value (final amount)
- P = Monthly SIP investment amount
- i = Compounded monthly return rate (Annual rate ÷ 12 ÷ 100)
- n = Investment duration in months
Example Calculation
For a monthly SIP of ₹5,000 for 10 years at 12% annual returns:
- P = 5,000
- i = 12 ÷ 12 ÷ 100 = 0.01
- n = 10 × 12 = 120 months
- M = ₹11,61,695
- Total investment = ₹6,00,000
- Wealth gained = ₹5,61,695
- Investment multiplier = 1.94x
SIP Investment Benefits
- Rupee cost averaging reduces impact of market volatility
- Power of compounding grows your money exponentially
- Disciplined approach to investing
- Start with small amounts
- Flexibility to increase investment amount
Historical Inflation Rates in India
| Year | Inflation Rate (%) |
|---|---|
| 2015 | 4.91 |
| 2016 | 4.95 |
| 2017 | 3.33 |
| 2018 | 3.94 |
| 2019 | 3.73 |
| 2020 | 6.62 |
| 2021 | 5.13 |
| 2022 | 6.70 |
| 2023 | 5.49 |
| 2024 | 5.22 |
Source: Forbes India, FocusEconomics
Why Adjust for Inflation?
Inflation erodes the purchasing power of money over time. When planning long-term investments, it's important to consider how inflation will affect the real value of your returns. The inflation-adjusted returns show you the actual purchasing power of your investment at maturity.
About SIP Investments
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly in a mutual fund scheme. SIPs help in building wealth over time through the power of compounding and rupee cost averaging.
Benefits of SIP
- Disciplined approach to investing
- Benefit from rupee cost averaging
- Start with small amounts
- Power of compounding
How to Use This Calculator
- Enter your monthly investment amount
- Set your expected annual return rate
- Choose your investment time period
- Toggle inflation adjustment if needed
- View the projected returns and maturity value