Why do the estimated returns differ from my mutual fund app?

This calculator assumes a constant rate of return and monthly compounding. Actual mutual fund returns fluctuate daily based on market conditions and expense ratios.

SIP Calculator — Mutual Fund & Wealth Growth Estimator

📈 SIP & Wealth Investment Calculator

Currency

Initial Advance Deposit (Optional)

Monthly SIP Deposit

Expected Return (% P.A)

Time Horizon (Years)

$0.00 Total Out-of-Pocket

$0.00 Estimated Wealth Gain

$0.00 Future Maturity Corpus

📈 Mutual Fund SIP & Wealth Investment Calculator

A Systematic Investment Plan (SIP) allows you to compound wealth steadily by investing fixed monthly amounts along with optional initial advance lump-sum deposits. This calculator projects the future value of your mutual fund investments by applying monthly compounding.

How SIP Compounding Works

Unlike a standard savings account, a SIP compounds monthly. The calculator uses the standard future value of an annuity formula (assuming deposits are made at the end of each month, known as an annuity-ordinary) for the monthly contributions. It uses standard monthly compound interest for the initial advance deposit.

Out-of-Pocket Invested: This is the exact cash you deposited (Advance + [Monthly × 12 × Years]).
Estimated Wealth Gain: The total interest or market returns generated over your time horizon.
Future Maturity Corpus: The final value of your investment (Principal + Gain).

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Frequently Asked Questions

How is SIP maturity calculated?

Monthly SIPs are compounded using the future value of an annuity formula, assuming deposits are made at the end of each month. Advance deposits are compounded as a lump sum.

What is the difference between an advance deposit and a monthly SIP?

An advance deposit is a one-time lump sum invested upfront, while a monthly SIP is a recurring investment. Both compound over time, but the lump sum has a longer time horizon to grow.