SIP Growth Calculator
Calculate how much your savings can grow over time with SIP.
What is SIP Growth?
SIP Growth is the compounding of your regular investments. This means investing a fixed amount at regular intervals; your wealth grows through returns on both your investment and accumulated returns.
How Does SIP Growth Work?
- Investments made regularly - You invest a fixed amount every month.
- Returns through compounding - Your returns generate more returns over time.
- Rupee Cost Averaging - You purchase more units when prices are low, and fewer when prices are high and balance out the volatility.
- Long-Term Growth - The longer you stay invested, the larger your corpus grows.
Factors Affecting SIP Growth
- Investment Period: The longer the tenure, the higher the growth
- Rate of Return: Higher returns accelerate compounding
- SIP Amount: Larger investments mean a larger corpus
- Step-up SIP: Increasing your SIP every year increases growth
How to Enhance SIP Growth?
- Begin early. The longer your money sits, the longer it has to grow.
- Long-term investment means not withdrawing.
- step-up SIP - Increase SIPs over time to increase returns on investment. Have a
- High-growth mutual funds - Select funds which have performed with strength in the past.
How does SIP Growth Work?
- Regular investments - You invest a fixed amount every month.
- Returns through compounding - Your returns generate more returns over time.
- SIP Cost Average- You would buy more quantities when prices drop, and when they go through the roof then less quantities wherein the overall market fluctuation works in your favour.
- Long term growth - Longer you invest with a SIP means larger the Corpus
What is a SIP Growth Calculator?
A SIP Growth Calculator is an instrument that helps an investor calculate the future value of his investment, given a fixed monthly SIP, expected rate of return, and investment duration. It illustrates how compounding and disciplined investing can help build wealth over time.
How Does a SIP Growth Calculator Work?
The calculator uses the future value formula for SIP investments:
FV=P× [{(1+r)^n − 1}/r] x (1+r)
Where:
FV = Future Value of the SIP investment
P = Monthly SIP amount
r = Expected monthly return rate (annual return ÷ 12 ÷ 100)
n = Number of months invested
