Frequently Asked Questions (FAQ) – SIP Calculator

1. What is an SIP Calculator?
An SIP Calculator is an online tool that helps investors estimate the maturity value of their Systematic Investment Plan (SIP). By entering details like monthly investment amount, expected annual return rate, investment duration, and frequency (daily, weekly, monthly, or one-time lumpsum), you can calculate the future value of your investments and understand potential returns.

2. How does the SIP Calculator work?
The SIP Calculator uses the compound interest formula to project future returns. It considers your periodic investment (daily, weekly, monthly, or lumpsum), the expected rate of return, and the investment duration to compute:
- Total Invested Amount
- Estimated Returns (Profit/Gain)
- Future Value (Wealth Accumulated)

3. What investment frequencies are supported?
Our SIP Calculator supports multiple investment frequencies:
- Daily SIP – Small investments made every day.
- Weekly SIP – Contributions made once a week.
- Monthly SIP – The most common option, where you invest once a month.
- Lumpsum – A one-time investment made upfront.

4. What are the benefits of using an SIP Calculator?
Using our SIP Calculator helps you:
- Plan your financial goals effectively.
- Compare daily, weekly, monthly, and lumpsum returns.
- Estimate the power of compounding over time.
- Decide the right SIP amount and tenure.
- Understand the breakup of Invested Amount vs. Estimated Gain.

5. Is the SIP Calculator accurate?
The SIP Calculator provides an approximation of future returns based on the inputs you provide. Actual returns may vary depending on market fluctuations, mutual fund performance, and other economic factors. It is a planning tool and not an assurance of returns.

6. Can I use the SIP Calculator for mutual funds only?
While SIPs are primarily used in mutual funds, our calculator can be used to estimate returns for any recurring investment product, including recurring deposits, ETFs, or even personal savings with a fixed expected return rate.

7. How does the calculator show results?
Our SIP Calculator not only shows the final maturity value but also generates:
- A line chart showing the growth of your investment over time.
- A doughnut chart showing the breakup of invested capital vs. gains.
This makes it easier to visualize how your wealth grows.

8. Why is SIP better than lumpsum investment?
SIP investments promote disciplined investing, reduce the risk of market volatility through rupee-cost averaging, and are suitable for salaried individuals. Lumpsum investments may be suitable when you have a large sum available and wish to invest it at once.

9. What is the formula used in SIP Calculation?
The formula used is:
FV = P × ((1 + r)^n - 1) / r × (1 + r)
Where:
- FV = Future Value
- P = Amount invested per installment
- r = Periodic rate of return
- n = Total number of installments

10. Can I calculate both SIP and Lumpsum investments here?
Yes! Our calculator supports both SIP (daily, weekly, monthly) and one-time lumpsum investment calculations. Simply select the frequency from the dropdown and get instant results.

11. Do I need to sign up to use the SIP Calculator?
No. Our SIP Calculator is completely free to use, requires no login, and does not store or track your data. Your privacy is 100% safe.

12. Why should I use an online SIP Calculator?
An online SIP Calculator saves time, eliminates manual calculations, and provides quick projections for different scenarios. You can experiment with multiple inputs to plan your investments for goals like retirement, education, buying a house, or wealth creation.