SIP Calculator
Calculate returns on your Systematic Investment Plan.
SIP stands for Systematic Investment Plan, a method of investing in mutual funds in which you contribute a fixed amount of money at regular intervals, like monthly or quarterly. It's a way to invest in mutual funds without making a significant lump-sum investment all at once.
What Is SIP Calculator?
A SIP (Systematic Investment Plan) calculator is a financial tool that helps investors estimate the returns on their SIP investments. It allows investors to calculate their monthly investment amount, investment duration, and expected rate of return to calculate the future value of their investment.
This SIP Calculator particularly helps investors plan their investments and understand how their money can grow.
The Power Of Compounding In SIPs
Compounding is the process where your investment earns returns, and those returns generate additional earnings over time. In a SIP, your regular contributions benefit from compounding as the returns are reinvested, leading to exponential growth.
Example: Investing ₹5,000 monthly at 12% annual return for 10 years doesn’t just grow linearly, it multiplies as both your contributions and accumulated returns earn further returns. This makes SIPs a powerful tool for long-term wealth creation.
How Can SIP Calculator Help You?
A SIP calculator is a simple tool that helps you plan your savings by showing how much money you can grow over time. Here's how it helps:
See Future Savings: You put in how much money you want to invest regularly (monthly), the period (3,5,7 years), and an expected growth rate (like 12,15,18 %). The calculator shows how much your money could become.
Plan Better: The SIP Calculator helps you decide how much to save each month to reach your goals, such as buying a car or a house.
Understand Growth: The Calculator shows how your small, regular savings can grow over time because of the compounding growth in mutual funds.
Save Time: Instead of doing complex math, the calculator does it for you instantly.
Try Different Options: You can change the amount, time, or rate to see what works best for your budget.
SIP Calculator Formula
An SIP Investment Calculator uses the following formula for getting the estimated returns:
FV = P × [({(1 + r)^n – 1} / r) × (1 + r)]
Where,
- FV = Future Value of the Investment.
- P = Monthly Investment Value (Periodic Investment).
- r = Expected Rate of Return.
- n = Number of years.
Recommended Mutual Funds
If you're not sure where to start or how to pick a mutual fund, then you should check out Top 10 Mutual funds listed there, from various fund classes(Debt, Liquid, Large Cap, Small & Mid Cap, ELSS etc), based on the recent performance (last 5 years) and CRISIL Ratings.
| Mutual Fund | Expected Returns |
|---|---|
| UTI Nifty Index Fund | ** |
| UTI Nifty N50 Index Fund | ** |
| Motilal Oswal S&P 500 Index | ** |
| Parag Parikh Liquid Fund | * |
How to use the SIP Calculator?
SIP Calculator is very simple to use. It is a three-step process. You can use it by following the steps mentioned below.
- Enter your Monthly SIP amount
- Enter the annual rate of return (%)
- Enter the number of years for which you want to stay invested
Click the “Calculate” button
Once done, you would be able to view estimated returns via your SIP investments in a matter of seconds.
Mutual funds in general and SIPs, in particular, are growing in India with each passing day. There are over 1,000 schemes in the market right now that an investor can choose from. Invest today after consulting with the SBI SIP calculator.
FAQs
How much can I invest in a SIP?
There is no limit on the amount you can invest in a SIP. You can start with an amount as low as ₹100 per month.
What is the maximum tenure of a SIP?
There is no maximum tenure of a SIP. You can invest as long as you can. The minimum tenure you can go for is 3 years.
Are SIPs similar to mutual funds?
People often tend to think of SIP as either mutual funds or different than a mutual fund. The fact is that SIP is just a style of investment and not a fund/scheme or a stock/investment avenue. It is an investment vehicle to invest periodically in a fund/scheme of your choice.
Can I modify my SIP amount?
Some types of SIPs, like Flexible SIP, allow you to change your investment amount. However, for other types of SIP, you are generally not allowed to modify the amount during the selected tenure. You can, however, pause or cancel the existing SIP.
Do SIPs allow only equity mutual fund investments?
SIP is a method for investing in mutual funds, particularly in equity and hybrid funds, which can be volatile. SIPs are also an option for debt funds, which tend to be less volatile.
What are the types of SIPs available?
The main types of SIPs are:
- Regular SIP: This is the standard SIP where a fixed amount is invested periodically.
- Flexible SIP (or Flex-SIP):This type allows you to change the SIP amount based on market conditions or your financial situation.
- Step-up SIP (or Top-up SIP): This plan allows you to increase your SIP amount by a fixed sum or percentage at regular intervals.
Can I renew a SIP?
To avoid the hassle of renewing, you can set up a "perpetual SIP" which continues indefinitely until you request for it to be stopped.
Can I pause my investments in a SIP?
Yes, you can pause or cancel your existing SIP based on your needs.