Moneylect Tool

SIP Calculator

Estimate how much wealth you can build through monthly SIP investments using the power of compounding.

Investment Details

Adjust the values below to estimate your future SIP returns.

Monthly SIP5,000
Investment Period20 Years
Expected Return12%

Quick Amount

Invested

₹12,00,000

Returns

₹37,95,740

Wealth

₹49,95,740

Wealth Distribution

Investment Growth

Year-wise Growth

YearInvestedWealth
160,00067,200
5120,000211,481
10180,000559,053
15240,0001,313,656
20300,0002,893,888

💹 Power of Compounding

Even small monthly SIPs can grow significantly over time because your returns begin earning returns.

📈 Invest Consistently

Investing every month helps reduce market timing risk through rupee cost averaging.

🚀 Start Early

The earlier you start investing, the longer compounding has to work for you.

Frequently Asked Questions

SIP stands for Systematic Investment Plan. It allows you to invest a fixed amount every month into mutual funds.

SIP invests in market-linked mutual funds. It reduces timing risk through regular investing, but returns are not guaranteed.

Yes. SIPs are flexible and can usually be stopped, paused, or modified through your investment platform.

Many long-term equity mutual fund examples use around 10–12% for illustration, but actual returns vary.

How is SIP calculated?

Future Value =

P × ( ((1+r)^n−1) / r ) × (1+r)

Where

  • P = Monthly Investment
  • r = Monthly Interest Rate
  • n = Total Months

Why Invest Through SIP?

SIP investing isn't just convenient—it helps build wealth through consistency and the power of compounding.

Power of Compounding

Your returns generate additional returns over time, helping your investments grow exponentially.

Affordable Investing

Start investing with small monthly amounts instead of waiting to accumulate a large lump sum.

Disciplined Habit

Automatic monthly investments help build long-term financial discipline.

Rupee Cost Averaging

Regular investments buy more units when prices are low and fewer when prices are high.

Example

Imagine you invest ₹5,000 every month for 20 years at an expected annual return of 12%.

Total Investment

₹12,00,000

Estimated Returns

₹37,95,000+

Total Wealth

₹49,95,000+

SIP vs Fixed Deposit

FeatureSIPFixed Deposit
ReturnsMarket LinkedFixed
RiskMediumLow
LiquidityHighMedium
Best ForLong-term WealthCapital Protection

New to SIP Investing?

Learn what SIP is, how it works, mistakes beginners make and how to start investing with as little as ₹500/month.

Read Complete Guide →

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