A SIP calculator is a handy tool that helps investors estimate the potential returns on mutual fund investments made through SIPs.

These calculators are built to give prospective investors an approximate idea of how their investments may grow over time. However, actual returns from a mutual fund can vary due to several factors. SIP calculators also do not account for aspects such as exit loads or expense ratios, if applicable.

The calculator works by estimating the wealth created and the expected returns on your monthly SIP contributions. It provides a broad projection of the maturity value of your investment, based on an assumed annual rate of return.