SIP Calculator & How does It Work ?

A SIP (Systematic Investment Plan) calculator is an easy online tool that helps investors estimate the future value of their monthly investments in mutual funds. Instead of guessing returns, a SIP calculator shows clear projections based on your monthly SIP amount, investment duration, and expected rate of return.

SIP Calculator
Monthly SIP Amount
Duration
Choose years and extra months (0–11)
Expected Return (Annual %)
Lump Sum (Optional)
₹0
Principal
₹0
Returns
0 mo
Tenure
₹0
future value
Principal
Returns
Lump Sum

How SIP Calculator  Works

A SIP calculator uses a compound interest formula to calculate how your money grows over time. In SIPs, you invest a fixed amount every month, and each monthly contribution earns returns at a compounding rate.

The formula used is:

FV = SIP × [( (1 + r)ⁿ – 1 ) / r ] × (1 + r)
Where:

  • FV = Future Value

  • SIP = Monthly investment

  • r = Monthly return rate (annual rate / 12)

  • n = Total number of months

Some calculators also include lump sum investment, which grows separately using compound interest.

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