SIP Calculator

Guide and Formula

Systematic Investment Plan (SIP)

SIP is a smart way to invest in mutual funds by investing a fixed amount regularly.

FV = P \times \frac{(1 + i)^n - 1}{i} \times (1 + i)

Where:

P = Monthly Investment

i = Expected Monthly Return Rate

n = Total Months (Years × 12)

Rupee Cost Averaging: Buy more units when NAV is low, fewer when high

Power of Compounding: Small investments grow significantly over time

Disciplined Investing: Automate your investments

SIP works best for long-term wealth creation (10+ years).

What is the minimum amount for SIP?

You can start SIP with as low as ₹500 per month in many mutual funds. Some funds even allow ₹100/month.

Can I pause my SIP?

Yes, most mutual funds allow you to pause your SIP temporarily. You can resume it later whenever you want.

Which date is best for SIP?

Any date works! Studies show minimal difference. Choose a date soon after you receive your salary for better discipline.

Is SIP tax-free?

SIP itself is not tax-free. Equity funds held >1 year have LTCG tax @10% (above ₹1 lakh gain). Debt funds are taxed as per your slab.

Can I modify SIP amount?

Yes, you can increase or decrease your SIP amount anytime. Some funds also offer step-up SIP that auto-increases annually.