📈 SIP Calculator

SIP (Systematic Investment Plan) = investing a fixed amount in a mutual fund at regular intervals (monthly). Benefits: - Rupee Cost Averaging: buy more units when NAV is low - Disciplined investing: automatic, habit-forming - Power of compounding: returns on returns - Flexible: start with as low as ₹500/month

M = P × [{(1 + r)^n - 1} / r] × (1 + r) Where: M = Maturity Amount (Future Value) P = Monthly SIP amount r = Monthly return rate = Annual Rate / 12 / 100 n = Total months (years × 12) Example: ₹10,000/month, 12% p.a., 15 years r = 12/12/100 = 0.01 n = 15 × 12 = 180 months M = 10,000 × [(1.01^180 - 1)/0.01] × 1.01 M = ₹50,45,760 (approx)

In a Step-Up SIP, your monthly amount increases by a fixed % each year (e.g., 10% annually). Year 1: ₹10,000/month Year 2: ₹11,000/month (+10%) Year 3: ₹12,100/month (+10%) ...and so on Step-Up SIP significantly grows your corpus vs flat SIP because contributions scale with income. ₹10,000/month flat for 20yr @ 12%: ₹99.9L ₹10,000/month +10% for 20yr @ 12%: ₹2.06Cr (+106%!)

When NAV is HIGH → you buy FEWER units When NAV is LOW → you buy MORE units Over time, your average cost per unit is LOWER than the average NAV — this is rupee cost averaging. Example: Month 1: NAV ₹100, ₹10,000 → 100 units Month 2: NAV ₹80, ₹10,000 → 125 units Month 3: NAV ₹120, ₹10,000 → 83 units Total: ₹30,000 invested, 308 units Avg cost: ₹97.40 vs avg NAV ₹100

Absolute Return = (Maturity - Invested) / Invested × 100 CAGR (for lump sum) = (Final/Initial)^(1/years) - 1 XIRR (for SIP) = internal rate of return that sets NPV of all cash flows to zero. Use XIRR to compare SIP returns. For SIP at 12% p.a. over 15 years: Invested: ₹18,00,000 Maturity: ₹50,45,760 Absolute Return: 180.3% XIRR: ~12% p.a.