SIP Calculator

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Returns
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Total Value
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SIP Calculator – Calculate SIP Returns Online | BankCliq

Investing regularly is one of the smartest ways to build long-term wealth, and Systematic Investment Plans (SIPs) make it simple and disciplined. With the BankCliq SIP Calculator, you can instantly estimate how much wealth your monthly SIP investment can create over time.

Whether you are a beginner or a seasoned investor, our SIP calculator helps you plan your mutual fund investments confidently and efficiently.

What Is a SIP (Systematic Investment Plan)?

A Systematic Investment Plan (SIP) is a method of investing a fixed amount of money in mutual funds at regular intervals such as monthly, quarterly, or weekly. SIPs help investors build wealth gradually while maintaining financial discipline.

What Is a SIP Calculator?

A SIP Calculator is an online tool that estimates the future value of your mutual fund investments made through SIP. It calculates:

Note: SIP calculator results are estimates. Actual returns depend on market performance and fund selection.

How Does a SIP Calculator Work?

The SIP calculator works using the compound interest formula:

M = P × ({[1 + i]n – 1} / i) × (1 + i)
  • M = Maturity amount
  • P = Monthly investment amount
  • n = Number of installments
  • i = Monthly rate of return

Understanding Monthly Return Calculation

A common mistake is dividing the annual return by 12. This is incorrect because mutual fund returns are compounded.

Monthly Return = {(1 + Annual Return)1/12} – 1

For example, a 12% annual return translates to approximately 0.95% monthly return, not 1%.

SIP Calculator Example

Let's say you invest:

  • ₹1,000 per month
  • For 12 months
  • At 12% annual return

Using the SIP formula:

Total Investment

₹12,000

Estimated Returns

₹766

Maturity Value

₹12,766

This shows the power of compounding—even with small monthly investments.

How to Use the SIP Calculator

  1. Enter your monthly investment amount (e.g., ₹1,000).
  2. Select the investment frequency (monthly, quarterly, etc.).
  3. Input the expected annual return rate (e.g., 12%).
  4. Specify the investment period in years (e.g., 10 years).
  5. Click "Calculate" to see your estimated returns and maturity value.

Adjust the inputs to see how different amounts, returns, and periods affect your investment growth.

Benefits of Investing Through SIP

Investing via SIP offers multiple advantages:

Encourages regular saving habit

Automates investing and builds financial discipline.

Reduces market volatility impact

Rupee cost averaging helps buy more units when prices are low.

Suitable for salaried and new investors

Start with as low as ₹500 per month.

Flexible investment amount and tenure

Increase, decrease, pause or stop SIP anytime.

Ideal for long-term wealth creation

Power of compounding works best over longer periods.

SIP vs Lump Sum Investment

SIP Lump Sum
Invests small amounts regularly Invests large amount once
Reduces market timing risk Market timing is crucial
Ideal for beginners Requires market knowledge
Disciplined investing One-time investment

FAQs on SIP Calculator

How much can I invest in a SIP?

You can start SIP with as low as ₹500 per month, depending on the mutual fund scheme.

What is the maximum SIP tenure?

There is no maximum limit. SIPs can run for 30 years or more.

Are SIPs and mutual funds the same?

No. SIP is a method of investing, while mutual funds are investment products.

Can I modify my SIP amount?

Yes, most fund houses allow SIP modification.

Can SIP be paused or stopped?

Yes. You can pause, stop, or restart your SIP anytime.

Does SIP work only for equity funds?

No. SIP is available for equity, debt, hybrid, and index funds.