Calculate returns on your Systematic Investment Plan
SIP (Systematic Investment Plan) allows you to invest a fixed amount regularly in mutual funds. It automates investing, benefits from rupee cost averaging (buying more units when prices are low, fewer when high), and harnesses the power of compounding over time.
A common guideline is 10-20% of monthly income. Start with what you can afford consistently—even ₹500/month grows significantly over time. Use the 50-30-20 rule: 50% needs, 30% wants, 20% savings including SIP investments.
SIP spreads investment over time, reducing timing risk and averaging costs. Lumpsum invests all at once, potentially better if markets are low. SIP suits salaried individuals and reduces emotional decision-making. Lumpsum works for windfalls if you can tolerate volatility.
Yes, SIPs have no lock-in period (except ELSS funds with 3-year lock-in). You can pause, stop, or modify the amount anytime. However, consistency is key for wealth building—avoid stopping during market downturns as that's when you buy units cheaply.
SIP returns use XIRR (Extended Internal Rate of Return) as each installment is invested at different times. Simple CAGR doesn't work accurately. Our calculator uses XIRR to give you the true annualized return on your SIP investments.
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