Calculate returns on your Systematic Investment Plan
Projects the future value of a Systematic Investment Plan, meaning regular fixed-amount contributions into a mutual fund. Uses the annuity future-value formula to account for compounding on each monthly deposit.
FV = P × ((1 + r)^n − 1) / r × (1 + r)
FVfuture valuePmonthly investment amountrexpected monthly return (decimal)ntotal number of monthly contributionsA Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly (usually monthly) into a mutual fund. It uses rupee-cost averaging to reduce the impact of market volatility.
SIP returns are calculated using the future value of an annuity formula: FV = P × [((1+r)^n minus 1) / r] × (1+r), where P is the monthly investment, r is the expected monthly return, and n is the number of months.
SIP reduces timing risk through rupee-cost averaging: you buy more units when prices are low and fewer when prices are high. It also encourages disciplined, regular investing.
Yes, most mutual fund houses allow you to increase, decrease, pause, or stop your SIP at any time. A step-up SIP automatically increases the investment amount at set intervals.