📈 SIP Calculator (Wealth Builder)
See the magic of compounding with Mutual Funds.
What is a SIP Calculator?
A SIP (Systematic Investment Plan) Calculator is a simple tool that allows you to calculate the returns on your mutual fund investments. By investing a small amount every month, you can build a significant corpus over time due to the power of compounding. The OneHisaab SIP Tool helps you visualize this growth.
While SIP is great for wealth creation, if you are planning to take a loan, check your EMI affordability with our EMI Calculator.
How SIP Works (The Formula)
The SIP calculator works on the following formula:
Where:
- FV = Future Value (Total Amount)
- P = Monthly Investment Amount
- n = Total number of payments (Months)
- i = Periodic Interest Rate
Why Start SIP Early?
- Compounding: The earlier you start, the more time your money gets to grow on itself.
- Rupee Cost Averaging: You buy more units when the market is down and fewer when it's up, averaging out the cost.
- Discipline: Automates your savings habit.
If you prefer safer investments with guaranteed returns, you might want to compare this with our Fixed Deposit (FD) Calculator.
Everything You Need to Know About SIP Investments
Investing in Mutual Funds through a Systematic Investment Plan (SIP) is one of the most disciplined ways to build wealth in India. Unlike a lump sum investment where you need a large capital upfront, SIP allows you to start small—with as little as ₹500 per month—and grow your money over time using the power of compounding.
The OneHisaab SIP Calculator is designed to help investors visualize their financial future. By entering your monthly investment amount, expected return rate, and tenure, you can instantly see how much wealth you can accumulate.
How Does a SIP Calculator Work?
Manual calculation of SIP returns can be complex because it involves monthly compounding. Our tool automates this using the standard future value formula:
Where:
- P = Monthly Investment Amount (e.g., ₹5000)
- i = Periodic Interest Rate (Annual Rate / 12 / 100)
- n = Total number of months (Years × 12)
For example, if you invest ₹5,000 per month for 10 years at an expected return of 12%, your total investment will be ₹6 Lakhs, but your maturity value could be over ₹11.6 Lakhs. Check the exact figures using the tool above.
SIP vs. Fixed Deposit: Where to Invest?
Many users confuse SIPs with FDs. While FDs offer guaranteed returns, they often fail to beat inflation. SIPs in equity mutual funds carry market risk but have historically delivered 12-15% returns over the long term.
| Feature | SIP (Equity Mutual Fund) | Fixed Deposit (FD) |
|---|---|---|
| Returns | High (10-15% avg) | Moderate (6-8%) |
| Risk | Market Dependent | Risk-Free |
| Liquidity | High (Exit Load may apply) | Penalty on premature withdrawal |
To compare exact FD returns, use our Fixed Deposit Calculator.
Benefits of Using OneHisaab SIP Tool
- Goal Planning: Whether it's buying a dream car or planning for retirement, knowing the exact corpus helps.
- Inflation Adjustment: Understand that ₹1 Crore today will not have the same value 20 years later.
- Comparison: Adjust sliders to see how increasing your investment by just ₹1000 can impact the final result.
Frequently Asked Questions (FAQ)
Is SIP tax-free in India?
Not entirely. Long Term Capital Gains (LTCG) above ₹1.25 Lakh in a financial year are taxed at 12.5%. Short term gains (less than 1 year) are taxed at 20%. You can estimate your tax liability using our Income Tax Calculator.
Can I stop SIP anytime?
Yes, SIPs are flexible. You can pause or stop them anytime without a penalty, although exit loads may apply if you withdraw the money within 1 year.
Does this calculator guarantee returns?
No calculator can predict market movements. This tool provides an estimate based on the "Expected Return Rate" you enter. Actual returns depend on market performance.
Disclaimer: Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully. The results generated by this calculator are indicative.