SIP Return Calculator with Budget 2026 Tax Slabs

What is a SIP (Systematic Investment Plan)?

A Systematic Investment Plan (SIP) is a simple way to invest in mutual funds. Instead of putting in a large amount at once, you invest a fixed amount regularly, like every month. This helps you build a habit of saving and reduces the risk of investing a lot of money when the market is high.

How Compounding Works for You

The biggest advantage of a SIP is compounding. When you invest regularly, the returns you earn start earning returns of their own. Over many years, this can grow your savings significantly, turning small monthly contributions into a large fund for your future goals.

Benefits of Investing via SIP

• Rupee Cost Averaging: Since you invest a fixed amount regularly, you automatically buy more units when the market is low and fewer units when the market is high. This averages out the cost of your investment over time, eliminating the need to time the market.

• Financial Discipline: SIPs instil financial discipline by forcing you to save and invest a designated amount every month before you spend.

• Convenience and Flexibility: You can start a SIP with an amount as low as ₹500 per month. You also have the flexibility to stop, pause, or increase your investment amount at your convenience.

How This Calculator Works

Our SIP calculator uses the reliable Future Value of Annuity formula to estimate your wealth creation accurately.

• Formula: P × ([ (1+i)^n - 1 ] / i) × (1+i)

• Where:

  • P = Monthly SIP amount

  • i = Expected rate of return per month (Annual Rate / 12 / 100)

  • n = Total number of monthly instalments (Duration in years × 12)

*Note: The calculated returns are estimates based on your expected annual return rate. Actual market returns may vary based on market performance and the specific fund's strategy.*