SIP Calculator

A SIP calculator is a simple tool that ascertains the returns on mutual fund investments made through SIP. These calculators give potential investors an estimate of the returns on their mutual fund investments. However, the actual returns earned on mutual fund scheme may vary, depending on several factors.

A SIP calculator does not provide information with respect to the exit load or expense ratio (if any) on the mutual fund scheme.

This calculator will calculate expected wealth gain and expected returns on investments made through SIP in any mutual fund scheme, based on a projected annual return rate.

Experts state that SIPs are a more lucrative mode of investing in mutual funds as compared to a lump sum amount. It helps you achieve financial discipline and create a habit of savings that can benefit you in the future.

A few of the benefits of SIP calculators include –

1. Assists you to determine the amount you want to invest
2. Tells you the total invested amount
3. Gives an estimated value of the returns

A SIP plan calculator works on the following formula –

M = P × ({[1 + i]^n – 1} / i) × (1 + i)

In the above formula –

• M is the amount you receive upon maturity.
• P is the amount you invest at regular intervals.
• n is the number of payments you have made.
• i is the periodic rate of interest.

Take for example you want to invest Rs. 1,000 per month for 12 months at a periodic rate of interest of 12%.

then the monthly rate of return will be 12%/12 = 1/100=0.01

Hence, M = 1,000X ({[1 +0.01 ]^{12} – 1} / 0.01) x (1 + 0.01)

which gives Rs 12,809 Rs approximately in a year.

The rate of interest on an SIP will differ as per market conditions and may increase or decrease, which will change the estimated returns.

Our SIP amount calculator is very easy to use.

Our SIP amount calculator is very easy to use.

• Just enter the monthly amount to invest (the amount for which you have started the SIP)
• The number of years for which you want to stay invested
• The expected rate of return.

As soon as you input the values, the calculator will show you the estimated returns you can avail for your selected investment tenure.

Remember that while is it commendable to do your own research and start selecting funds, its also a great idea to talk to a well known financial expert to get well researched insights on investment opportunities that best align with and help achieve your financial goals.