SIP Calculator
Estimate the future value of your monthly mutual fund investments with real-time compound growth.
Maturity Estimate
*Projections are based on monthly compounding. Mutual fund investments are subject to market risks.
Track Your Monthly SIPs Automatically
Want to track these payments locally and securely? Download SpendSathi on Google Play to log UPI auto-debits and mutual fund SMS notifications on-device.
What is a SIP (Systematic Investment Plan)?
A Systematic Investment Plan (SIP) is an investment mechanism offered by mutual fund houses in India that allows an individual to invest a fixed amount of money at regular intervals—typically monthly or quarterly—into a chosen mutual fund scheme.
Rather than trying to time unpredictable stock market swings with a lump-sum commitment, a SIP enforces financial discipline. Through Rupee Cost Averaging, you automatically purchase more mutual fund units when market valuations dip and fewer units when markets rise, smoothing out your purchase cost over market cycles.
How is compound interest calculated for a SIP?
Unlike fixed deposits where a single principal compounds over a period, a SIP involves recurring fresh deposits every month. Each instalment compounds for a different duration—the first instalment compounds for the full tenure, while the last instalment compounds for only one month.
The standard formula to calculate the accumulated maturity amount for a monthly SIP is:
Where:
- M: Maturity value (future value of total investments).
- P: Fixed monthly investment amount.
- i: Periodic monthly interest rate (Annual Return Rate ÷ 12 ÷ 100).
- n: Total number of monthly instalments (Years × 12).
Why does starting a SIP early make a massive difference?
The true power of a SIP stems from the exponential nature of compounding. In the initial years, your invested capital makes up the majority of your total portfolio value. However, as the tenure extends past 10 to 15 years, the accumulated returns dwarf your original contributions.
For example, investing ₹5,000 monthly at a 12% annual rate for 10 years produces approximately ₹11.6 Lakhs (from ₹6 Lakhs invested). Extending that exact same SIP for another 10 years (20 years total) generates nearly ₹50 Lakhs (from ₹12 Lakhs invested). Starting five years earlier can literally double or triple your ultimate retirement corpus.
How to track monthly SIP debits with SpendSathi?
Whenever your bank processes an automated SIP mandate or mutual fund debit via NACH or UPI, you receive an SMS alert. SpendSathi reads and parses these transaction SMS notifications entirely on your Android smartphone without uploading banking statements to cloud servers.
You can categorize recurring investment debits, monitor your monthly cash flow, and ensure you maintain sufficient bank balance ahead of your scheduled SIP dates with total local privacy.