A SIP (Systematic Investment Plan) calculator helps you estimate the future value of your monthly investments in mutual funds. It shows how small, regular investments can grow over time using the power of compounding.

A Systematic Investment Plan (SIP) calculator is a simple and effective tool that helps investors estimate the future value of their monthly investments in mutual funds. It allows users to understand how small, consistent investments can grow significantly over time with the help of compounding. By entering the monthly investment amount, expected rate of return, and investment duration, the calculator provides an estimate of the total maturity value at the end of the investment period.

The SIP calculator works on a compound interest formula that assumes investments are made at regular intervals and returns are compounded periodically. It calculates how each monthly contribution grows over time and adds up the accumulated value of all investments. The formula used in SIP calculation is:

$M = P \times \left(\frac{(1 + r)^n – 1}{r}\right) \times (1 + r)$

In this formula, M represents the maturity amount, P is the fixed monthly investment, r is the monthly rate of return derived from the annual interest rate, and n is the total number of months. The calculator helps investors visualize long-term wealth creation and encourages disciplined investing without worrying about market timing.