SIP Calculator Guide

Learn how SIP calculators work, which formula they use, and how to interpret invested amount, returns, and maturity value.

This guide explains how an SIP (Systematic Investment Plan) calculator works, which formula it uses, and how to read the results. For the calculator itself, open the SIP Calculator.

What is an SIP?

An SIP is a way to invest a fixed amount regularly (usually monthly) into a mutual fund or similar investment. Over time, returns may compound, which can significantly increase the final maturity value.

SIP formula

FV = P × (((1 + r)^n − 1) / r) × (1 + r)

P = monthly investment

r = monthly return rate (annual rate / 12)

n = number of months (years × 12)

How to interpret results

Invested amount: total money you contributed (P × n).
Estimated returns: maturity value minus invested amount.
Maturity value: estimated value of your SIP at the end of the period.