SIP Calculator

Project the maturity value of a monthly SIP investment.

Overview

Projects the future maturity corpus of recurring monthly mutual fund investments using compound interest and rupee-cost averaging.

Formula & Calculation Method

M = P × [((1 + i)^n - 1) / i] × (1 + i)

M = Final maturity corpus, P = Monthly instalment, i = Periodic monthly return rate (Annual return / 12 / 100), n = Total months.

Worked Example: ₹5,000 Monthly SIP for 10 Years at 12%

Inputs: Monthly SIP = ₹5,000 | Expected Return = 12% p.a. | Tenure = 10 Years (120 Months)

  • Monthly periodic return i = 12 / 12 / 100 = 0.01
  • Growth multiplier = ((1.01)^120 - 1) / 0.01 × 1.01 = 232.339
  • Maturity value = ₹5,000 × 232.339 = ₹11,61,695

Summary: Invested Capital = ₹6,00,000 | Wealth Gained = ₹5,61,695 | Expected Maturity = ₹11,61,695

Common Use Cases

  • Retirement Nest Egg: Calculate monthly equity contributions required to build a retirement corpus.
  • Higher Education Fund: Project maturity capital for children's future university tuition fees.
  • Wealth Building: Harness rupee-cost averaging to eliminate the need for market timing.

Frequently Asked Questions

What is rupee-cost averaging in SIP?

When equity NAVs fall, your fixed monthly instalment automatically buys more units; when NAVs rise, fewer units are purchased, lowering average acquisition cost.

Can I increase my SIP amount as my income grows?

Yes, using a Step-Up SIP option, you can automatically boost contributions by 5% to 10% each year.

Is SIP tax-free in India?

Equity mutual fund gains above ₹1.25 Lakh per financial year are subject to 12.5% Long-Term Capital Gains (LTCG) tax.

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