Increase your investment by this percentage each year (e.g., 10% for 10% annual increase).
This is your assumed compounded annual growth rate.
Your estimated future value will be ₹0.00
Total Investment: ₹0.00
Total Returns: ₹0.00
Understanding the Mutual Fund SIP Calculator
The Systematic Investment Plan (SIP) calculator is a powerful tool designed for Indian investors to estimate the potential future value of their mutual fund investments made through a disciplined, regular investment approach. Instead of investing a lump sum, SIP allows you to invest a fixed amount at regular intervals (usually monthly) in a mutual fund scheme. This calculator helps you project your wealth creation based on your chosen investment amount, period, and the expected rate of return.
How the Calculation Works
The formula used by this calculator is based on the future value of an annuity, with an added component for the annual step-up in investment. It considers the compounding effect of returns over time.
The core calculation for the future value of an SIP without step-up is derived from the future value of an ordinary annuity formula:
FV = P * [((1 + r)^n – 1) / r] * (1 + r)
Where:
FV = Future Value of the investment
P = Periodic Investment amount (e.g., monthly investment)
r = Periodic interest rate (Annual Rate / Number of periods per year)
n = Total number of investment periods (Investment Period in Years * Number of periods per year)
For a monthly SIP, r = (Annual Rate / 100) / 12 and n = Investment Period in Years * 12.
This calculator enhances the basic formula by incorporating an Annual Step-Up in the monthly investment. Each year, the monthly investment amount is increased by the specified percentage. This iterative process is calculated year by year to provide a more accurate future value projection.
Key Inputs Explained:
Monthly Investment (₹): The fixed amount you plan to invest every month.
Annual Step-Up in Investment (%): The percentage by which you intend to increase your monthly investment each year. This is crucial for aligning your investments with potential income growth and combating inflation.
Investment Period (Years): The total duration for which you plan to continue your SIP. Longer periods generally lead to significantly higher wealth creation due to compounding.
Expected Annual Return (%): The estimated compounded annual growth rate you anticipate from your chosen mutual fund scheme. This is a projection and actual returns may vary.
Why Use an SIP Calculator?
Goal Planning: Helps in setting realistic financial goals like buying a house, funding education, or planning for retirement.
Wealth Creation Projection: Gives an estimate of how your money can grow over the long term.
Discipline and Consistency: Encourages a disciplined investment approach, which is key to successful wealth building.
Impact of Compounding: Demonstrates the power of compounding, where your returns start generating their own returns over time.
Comparison: Allows you to compare different investment scenarios by changing the input parameters.
Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully. The returns shown by the calculator are indicative and not guaranteed. Past performance is not indicative of future results. Consult with a financial advisor before making investment decisions.
function calculateSIP() {
var monthlyInvestment = parseFloat(document.getElementById("monthlyInvestment").value);
var annualStepUp = parseFloat(document.getElementById("annualStepUp").value);
var investmentPeriod = parseInt(document.getElementById("investmentPeriod").value);
var expectedAnnualReturn = parseFloat(document.getElementById("expectedAnnualReturn").value);
var monthlyRate = (expectedAnnualReturn / 100) / 12;
var totalMonths = investmentPeriod * 12;
var currentMonthlyInvestment = monthlyInvestment;
var totalInvestment = 0;
var futureValue = 0;
// Input validation
if (isNaN(monthlyInvestment) || monthlyInvestment <= 0 ||
isNaN(annualStepUp) || annualStepUp < 0 ||
isNaN(investmentPeriod) || investmentPeriod <= 0 ||
isNaN(expectedAnnualReturn) || expectedAnnualReturn < 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
for (var i = 0; i 0) {
futureValue = futureValue + adjustedMonthlyInvestment;
totalInvestment = totalInvestment + adjustedMonthlyInvestment;
} else {
// Handle potential issues if step-up results in non-positive investment
adjustedMonthlyInvestment = 0;
}
if (monthlyRate > 0) {
futureValue = futureValue * (1 + monthlyRate);
}
}
var totalReturns = futureValue – totalInvestment;
document.getElementById("futureValue").innerText = formatCurrency(futureValue);
document.getElementById("totalInvestment").innerText = formatCurrency(totalInvestment);
document.getElementById("totalReturns").innerText = formatCurrency(totalReturns);
}
function formatCurrency(amount) {
// Use Indian numbering system (lakhs, crores) if desired, or standard.
// For simplicity, using standard comma separation here.
return amount.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",");
}
// Initial calculation on page load
document.addEventListener('DOMContentLoaded', calculateSIP);