SIP Calculator India – How SIP Really Grows Your Wealth Over Time
SIP (Systematic Investment Plan) is the most popular investment method among Indian earners making between ₹0–30 lakh per year. But most Indians still don't know how exactly SIP grows, how much final wealth they can expect, and how different variables like CAGR, duration, and withdrawal affect their future net worth.
This guide will help you understand SIP growth in a simple and practical way. It is written for beginner and intermediate investors—especially those planning long-term goals like buying a house, early retirement, child's education, or financial independence.
⭐ What is SIP?
A SIP is a fixed amount you invest regularly (usually monthly) in mutual funds. Instead of timing the market, SIP uses rupee-cost averaging, meaning you buy more units when prices fall and fewer when they rise.
SIP works best when:
- you invest consistently
- you stay invested for long periods
- your investment compounds over time
⭐ How SIP Actually Grows (The Real Formula)
SIP grows monthly, not yearly.
If your mutual fund grows at 9% CAGR, the real monthly growth rate is:
Monthly Rate = (1 + 0.09)^(1/12) - 1
This equals approximately: 0.72% monthly
The SIP portfolio grows like this:
V_m = (V_(m-1) × (1+r)) + SIP
Where:
- V_m = portfolio value this month
- r = monthly growth rate
- SIP = your monthly investment
This is the exact formula used inside CheckYourNetWorth.in.
⭐ Example: ₹10,000 SIP at 9% CAGR for 20 years
Let's apply the formula.
- Monthly SIP: ₹10,000
- CAGR: 9%
- Duration: 20 years
If you invest 10k every month:
- Your total invested money = ₹10,000 × 12 × 20 = ₹24,00,000
- Your final corpus ≈ ₹57–58 lakh
More than half your wealth is purely compound growth, not investment.
⭐ Power of Long-Term Compounding
The longer you stay invested, the more SIP magic happens.
SIP 10k @ 9% CAGR:
| Duration | Corpus |
|---|---|
| 10 years | ~₹19 lakh |
| 15 years | ~₹32 lakh |
| 20 years | ~₹57 lakh |
| 25 years | ~₹1.12 crore |
| 30 years | ~₹2.10 crore |
This shows compounding accelerates dramatically after 20–25 years.
⭐ Why Your SIP Amount Matters More Than Your Return
Most people chase big returns—12%, 15%, even 20%.
But real wealth comes from:
- ✔ Increasing SIP gradually
- ✔ Staying invested longer
- ✔ Avoiding unnecessary withdrawals
- ✔ Avoiding risky exotic funds
A 10% yearly increase in SIP can double or triple your final corpus.
⭐ How Withdrawals Affect SIP (The Hidden Trap)
If you withdraw money mid-way:
- your compounding resets
- your portfolio drops
- final value reduces drastically
Example:
If your SIP grows to ₹60 lakh after 20 years and you withdraw ₹20 lakh, your final wealth after 30 years may drop by ₹50–80 lakh depending on timing.
That's why CheckYourNetWorth.in allows you to simulate withdrawals and see long-term impact instantly.
⭐ SIP vs Lump Sum – Which is better?
For regular earners:
- SIP = safest, most predictable
- Lump sum = useful only during big market corrections
SIP also reduces the emotional pressure of timing the market.
⭐ How to Use CheckYourNetWorth.in as a SIP Calculator
You can:
- add multiple SIPs
- apply different CAGR for each
- see month-wise net worth
- add withdrawals
- add loans
- add assets like gold, real estate, or shares
This makes it India's most accurate SIP calculator because it factors in your entire financial life, not just one SIP.
Final Thoughts
SIP is the most powerful wealth creation tool available to Indian investors.
It works best when paired with:
- long-term mindset
- consistent investing
- realistic CAGR expectations
- minimal withdrawals
Use CheckYourNetWorth.in regularly to plan your future wealth and make wise financial decisions.