SIP Calculator

Calculate the returns of your investments with our online SIP calculator.

I want to invest monthly

For a time period of

Years

1 Year

40 Years

At a growth rate of

2.5

P.A.

1 %

30 %

Past 5 year returns of

Gold

Bank FD

Nifty

12%

Invested Amount

₹0

Estimated Returns

₹0

Total Amount

₹0

If you contribute ₹25,000/month over the next 10 Years, you’ll have ₹0 (0.00 Lakh) in savings.

What is SIP?

SIP or Systematic Investment Plan is a way of investing in Mutual Funds. In this, money is invested regularly, which allows one to become a disciplined investor over time. It helps an individual to take advantage of the compounding effect.

SIP is the most preferred method of investing in mutual funds. Investors can stop or modify the SIP whenever they want.

A few investors think that SIP and Mutual Funds are the same, but Mutual funds are an investment option, and SIP is a method to invest in Mutual funds. In SIP, a person invests a certain amount of money on a monthly, quarterly, half-yearly, or yearly basis.

Fun fact

You can start a SIP with as little as INR 500 per month, which makes SIP a popular tool for investment. It provides flexibility to investors in choosing the amount, the frequency of deposits, and the investment period.

What is a SIP Calculator?

The SIP calculator is a mathematical tool that helps individuals understand how much they need to invest regularly to achieve their financial goals or how much they can earn if they invest a certain amount periodically.

SIPs have lately gained popularity among investors in India. Starting the investment journey through the help of a mutual fund empowers them to achieve financial freedom in the future along with understanding the need for early investing.

SIP calculators do not provide you with the exact amount you will be receiving in the future. It gives you a rough estimate of what you could expect in the future by investing a certain amount of money today. The actual return on your investment depends on various factors, such as future market returns and dynamics, expense ratio, etc.

Why you should use a SIP Calculator?

Simplifies the process:
Calculating the SIP return using a regular calculator is hectic, specifically for someone not good with numbers. That's where online SIP calculators come to your rescue.
Estimate of future returns:
SIP calculators help you to know the future values of your investment. SIP calculators don't provide you with the exact amount; it gives you a rough estimate of what you could expect in the future by investing a certain amount of money today.
Time Efficient:
Calculating your SIP returns without the help of an SIP calculator is a very time-consuming process. For people not acquainted with mathematics, it’s torment to get the results manually. Using SIP calculators can save a lot of time.
Helps in comparison:
SIP calculators are used to compare the returns of different Mutual funds. The returns from an investment depend on the amount invested, the period of the investment, and the potential returns given by the fund, which is different for every mutual fund.

How do SIP Calculators work?

The Online SIP calculator provides you the results using the compound interest formula. The formula for the SIP calculator is given below:

The formula for the SIP calculator is shown below:

A=P(1+r/n)^nt

A	The future value of your investment
P	The amount that you invest each month.
R	The rate of return on your investment (In the case of Mutual Funds generally depends on the market dynamics)
N	Frequency
T	Period of your investment

Let's understand this with an example:

Suppose Mr. Sahil wants to start his investing journey with a SIP of INR 10,000 per month in an equity mutual fund. He wants his investment value after 20 years, and the average expected return is 15% p.a. .

By simply putting the values in the calculator & voila! He gets his final investment amount, which is INR 15,159,550.

What are the benefits of starting a SIP?

There are numerous benefits of starting a SIP:

Discipline investing:
Starting a SIP gives a sense of financial discipline to an individual. Since he or she knows that they are obligated to invest a certain amount of money every month or so for a better future.
Convenient:
SIP is a convenient form of investing as you can start with as little as INR 500.
Professional Management
Doing SIP in mutual funds means your investment is in good hands, as mutual funds are managed by professional fund managers with vast domain knowledge.