This Indian **SIP calculator** is a tool mainly used for estimating the future value of the invested amount. It gives a rough idea to calculate the potential investors an estimate on their mutual fund investments in various funds depending on the interest rate offered by relative funds and schemes.

This SIP calculator will help you calculate your total invested amount, expected maturity amount, wealth gain, and expected values in the upcoming years.

But, keep in mind the actual return offered by various mutual fund plans and schemes can differ depending on factors such as expense ratio and entry load and exit load.

## What is SIP (Systematic Investment Plan)?

SIP stands for **Systematic Investment Plan.** There is a huge misconception among people regarding SIP. They generally think that SIP and **Mutual Funds** are the same. However, the **SIP** is the term only used for investing a fixed amount of money at a regular interval in various mutual fund schemes offered by several companies to create wealth in the long term.

SIP facilitates you to invest your money on a daily, monthly, quarterly, and yearly basis and reduces the blow of market volatility.

### How does a SIP calculator function?

Several methods or calculation methodologies can be used to calculate compound interest. Here are the best and most famous formulas we have provided for compound interest calculation.

The **Online SIP calculator** uses this compound interest formula to estimate your investments’ future value.

is the future value of the SIP investments.**FV**is the amount invested at each interval (e.g., monthly).**P**is the monthly rate of return (annual rate of return divided by 12).*r*is the total number of investments (payments) made over the period.**n**

### What is compound interest?

If we say it briefly, when the interest accumulated up to a point in time is added to the principal amount, and interest is evaluated on this combined amount, that is called, in simple language, compound interest. This **online SIP calculator** uses the compound interest calculation methodology for the future total value of your long-term investment.

### Benefits of this SIP-(Systematic Investment Plan) Calculator?

Here are multiple benefits of this **monthly sip calculator** **with inflation rate**.

- This calculator helps you in determining the future valuation of your total investment.
- Calculate the real valuation of your total investment, factoring in the average inflation rate. (The inflation rate fluctuates monthly. As of the current time in 2024 in India, the annual average inflation rate is between 5.5% and 5.69%.)
- You also have the option to adjust the return rate according to your expected annual returns.
- It helps you understand the future valuation of inflation and total nominal returns if you invest for periods of 10, 20, 30, 40, and 50 years.
- This SIP calculator can also be used in various international currencies such as USD, EUR, GBP, AUD, JPY, CAD, CHF, CNY, and SEK.

### What is Annual Inflation?

Annual inflation is how much prices go up in one year. If inflation is high, things get more expensive, and your money buys less than before.

**Example:-** Suppose you can buy a pen this year for ₹10 and the next the price of a pen is ₹12 that’s inflation and you have to pay more rupee for a pen than the previous year.

### Conclusion:

This online **SIP plus lumpsum calculator** helps you analyze the future valuation of your investment and enables you to plan a goal for long-term wealth in the future or any other financial planning, like education, home, and more.

The SIP calculator helps you make data-driven decisions and eliminates the guesswork of estimating the future value of your invested amount.

Please comment below if you have any queries or questions about this, advanced sip calculator.

**Disclaimer:**

We are not providing any financial advice or investment, it is only one systematic investment calculator tool for educational purposes.

### Frequently Asked Questions?

### Can I start an SIP investment with ₹100?

You can start with the minimum amount of SIP of ₹100, in various Mutual Funds.

### How much is 5000 for 5 years in SIP?

If you are planning for SIP investment from ₹5,000/month for five years and assuming an average return rate of 15%, then the total nominal return will be: ₹1,48,408.45

Future Value (Nominal): ₹4,48,408.45

Future value with 3.5% Inflation (Real): ₹3,76,515.51

### How much is 4000 per month in SIP for 10 years?

If you invest ₹4,000/month for 10 years and assume an average return rate of 14%, then the total nominal return will be): ₹5,68,365.53

Inflation of 10 Years (Real): ₹2,59,147.15

Future Value (Nominal): ₹10,48,365.53

Future Value with 3.5% Inflation (Real): ₹7,39,147.15

### Is SIP risk-free?

If we say in brief, It is a low-risk investment system (method).

### Is SIP 100% safe?

No, It is not entirely risk-free, but you can expect low risk in the long run.