SIP stands for Systematic Investment Plan. In simple words, it is a way to invest a fixed amount of money into a mutual fund every month — automatically, without you having to think about it each time. You set it up once, and every month on a fixed date, the money moves from your bank account into your chosen mutual fund.

Think of it like a recurring deposit — but instead of a bank keeping your money at a fixed 6–7% interest, your money goes into the stock market through a mutual fund, where it has the potential to grow at 10–15% or more over the long run. The key word is potential — markets go up and down, but history shows that staying invested for the long term almost always rewards patient investors.

The beauty of SIP is that you do not need to be rich to start. You can begin with as little as ₹100 or ₹500 per month on most platforms. You do not need to time the market, predict which stocks will rise, or understand complex finance — the fund manager does all of that for you. Your only job is to stay consistent.

A SIP calculator is a simple online tool that tells you how much money you will have at the end of a set period if you invest a fixed amount every month. You put in three numbers — how much you invest monthly, what return rate you expect, and for how many years — and the calculator instantly shows you the final corpus.

It takes the guesswork out of financial planning. Instead of wondering “will ₹3,000 a month be enough for my child’s education in 15 years?” — you type it in and get an answer in seconds. You can then play with the numbers, increase the SIP amount, extend the duration, or change the expected return to find a plan that actually works for your goals.

The SIP calculator uses a standard compound interest formula applied to each monthly instalment separately. Every month’s investment earns returns not just on itself, but also on the returns it has already generated — this is called compounding, and it is what makes SIP so powerful over long periods.

The formula used is: FV = P × [(1+r)ⁿ − 1] ÷ r × (1+r) — where FV is the final value, P is your monthly SIP amount, r is the monthly return rate (annual rate ÷ 12), and n is the total number of months. You do not need to remember this — the calculator handles it instantly.

Here is how to use the calculator above in 3 simple steps:

The calculator instantly shows your total invested amount, the estimated returns earned, and your final corpus. Change any value and the numbers update in real time — no page reload needed.

Here is a reference table showing how different SIP amounts grow over time at a 12% annual return. These are estimates — actual returns will vary based on the fund you choose and market conditions.

Most people know they should invest. But they either think they do not have enough money to start, or they are scared of losing money in the stock market, or they just keep putting it off. SIP solves all three of these problems in one shot.

The single biggest advantage of SIP is something called rupee cost averaging. When markets fall, your fixed SIP amount buys more units. When markets rise, it buys fewer. Over time, this averages out your purchase cost and reduces the impact of market volatility on your portfolio. You do not need to worry about whether today is a good time to invest — SIP takes care of that automatically.

Starting a SIP in India today takes less than 15 minutes and you can do everything from your phone. Here is the complete step-by-step process for a first-time investor:

* All SIP return figures shown are estimates based on assumed annual returns and the standard compound interest formula. Mutual fund investments are subject to market risks. Past performance is not a guarantee of future returns. Please read all scheme-related documents carefully before investing. Unity Wealth Capital does not provide investment advisory services — this content is for educational purposes only.