What is a SIP Calculator?
A SIP calculator is a financial tool that helps investors estimate the future value of regular investments (Systematic Investment Plans) based on expected returns and investment duration. It’s widely used in mutual fund planning and goal-based investing.
Our SIP calculator for U.S. investors supports monthly, quarterly, or yearly contributions, and offers three modes:
- SIP Mode: Calculates the maturity value of periodic contributions.
- Lumpsum Mode: Calculates the future value of a one-time investment.
- Goal SIP: Calculates how much you need to invest periodically to reach a target amount, optionally including an initial lump sum.
Frequently Asked Questions
1. What is the expected return I should use?
Historical U.S. mutual fund and ETF returns range between 6-10%. For conservative planning, consider using 6-8%.
2. Can I use this calculator for retirement planning?
Absolutely! The Goal SIP mode is ideal for setting long-term targets such as retirement or college funds.
3. Is compound interest used?
Yes, the SIP calculator assumes compound interest, compounding based on selected frequency.
4. Can I include a one-time investment?
Yes, the Goal SIP calculator allows you to include an initial lump sum in addition to regular SIPs.