SIP Formula
M = P × [(1 + r)ⁿ − 1] / r × (1 + r)
Where: M = Maturity amount, P = Monthly investment, r = Monthly rate, n = Months
Example
$5000/month for 10 years at 12% p.a.
Monthly rate r = 12%/12 = 1% = 0.01
n = 10 × 12 = 120 months
M = 5000 × [(1.01)¹²⁰ − 1] / 0.01 × 1.01
M = $1161695 (approx)
Invested = $600,000 | Gains = $561695
What is SIP?
A Monthly Investment Plan (SIP/DCA) (SIP) lets you invest a fixed amount in a mutual fund at regular intervals (usually monthly). It benefits from rupee cost averaging and the power of compounding.
Is SIP return guaranteed?
No. Mutual fund SIP returns depend on market performance and are not guaranteed. The calculator uses a fixed assumed annual return for illustration purposes only.