SIP Calculator

A SIP calculator is a simplified online tool that permits individuals to have an idea in regards to the returns upon the mutual fund where the investment has been done through a SIP. The SIP calculator is designed in a way that it gives the investors an estimate on the respective investment of the mutual fund.

Read more
Best Investment Plans
  • Guaranteed Tax Savings

    Under sec 80C & 10(10D)
  • ₹ 1 Crore

    Invest 10k Per Month*
  • Zero LTCG Tax

    Unlike 10% in Mutual Funds

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Top Performing SIP's with Zero Commission
Invest ₹10k/month & Get Rs 1 Cr Tax free*
+91
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp
SIP Calculator
  • SIP
  • Lumpsum

Monthly Investment

₹500 ₹1L
Enter Monthly Investment

Total Investment

₹500 ₹10L
Enter Total Investment

Expected Rate of Return (Yearly)

1% 20%
Expected Rate of Return (Yearly)

Time Period

1 Year 30 Years
Enter Time Period
Total Investment
Interest Earned
Maturity Amount

What is SIP Calculator?

A SIP calculator is a simplified online tool that permits individuals to have an idea in regards to the returns upon the mutual fund where the investment has been done through a SIP. The SIP calculator is designed in a way that it gives the investors an estimate on the respective investment of the mutual fund. 

Besides, it is important to understand that the actual returns provided by any of the schemes of mutual funds depend upon different factors. In the case of the expense ratio and exit load, the SIP calculator will not offer any clarification for the same. This gives you a rough structure and a fair idea of the estimate on the amount of maturity for the SIP monthly on the premise of the projected yearly rate of return.

SIP Calculation Formula

The following formula is used to calculate the SIP plan amount:

FV = P x ({[ 1+ i ] ^ n-1 } x (1+i)

Here is the elaboration:

FV = Future Value (The amount to be received after maturity)

P = Amount that the investor invests

i = The rate of interest periodically

n = Total number of payments made by the investor till date

Let us understand the formula with an illustration:

Mr. X invests an amount of Rs. 1,000 per month in a SIP for 1 year (12 months) at a rate of interest of 12%. By these figures, the monthly return will be around 12% / 12 = 1 / 100 = 0.01

So, when we put the figures in the formula:

Future Value = 1,000 x ({[ 1 + 0.01 ] ^ {12 – 1 } / 0.01 ) x ( 1 + 0.01)

After calculation,

Future Value = Rs. 12,809 (approximately)

Note: The interest rate changes as per the market conditions. Hence, the value can never be defined exactly and hence will always vary.

How to Use a Systematic Investment Plan (SIP) Calculator?

Using a SIP calculator is a much-simplified process. Therefore, to avail the estimate of the return upon the investment made on the mutual funds via SIP through this tool, you need to follow the below mentioned easy steps:

Step 1: Provide the duration of the SIP that means the period wherein you wish to invest in the scheme of the mutual fund. The duration of the SIP could vary from months to some years.

Step 2: Gauge the pace of profit for your investment. You can decide this by checking the presentation reputation of the scheme of mutual fund in which you want to contribute. You can get insights about the profits of a mutual fund scheme to conspire either from the fact sheet, which is available on the website of the specific fund.

Step 3: The SIP calculator provides either the month-to-month SIP sum that you intend to put resources into a mutual fund plan of your decision or the objective corpus. If you fill in the measure of month-to-month speculation you are prepared to make, at that point assessed returns at development time are given. If you are utilizing the number cruncher to assess how much cash you have to put resources into a common reserve plan to get a particular sum toward the finish of your SIP period, at that point enter the objective sum and calculator will give the data of a necessary month to month investment.

The SIP calculator will display the accumulated amount towards the end of the tenure of the policy. You can also see a comparison of the accumulated sum of the mutual fund invested along with the fixed deposits.

How Does SIP Calculator Work?

A SIP calculator essentially works wherein the users enter the values, which implies that the users need to provide the information in regards to the investment amount, investment frequency, investment duration, and the returns expected.

Based upon the formula of compound interest, the SIP calculator has specifically been designed. The interest of the compound powers the returns on the mutual funds. The SIP calculator also enables one to get a comparison of the offered returns by the mutual funds along with the deposits that are fixed.

How Can a SIP Return Calculator Help You?

Many of the mutual fund specialists recommend SIP over any other mode of fund investment as it helps you to be more disciplined in terms of finances. Moreover, it also instills the practice of savings that will help you for a fruitful future.

You can easily use a SIP calculator online and can easily know the estimated returns that you would acquire post the tenure of SIP. It also helps you to determine the amount that you wish to invest and informs you regarding the complete amount invested and gives you the estimated value on the returns.

Advantages of Using the Systematic Investment Plan Calculator

Listed below are the key advantages of using a SIP calculator:

  • It gives you the estimate based on, which you can plan your finances in a better manner.

  • The SIP calculator permits you to have an estimation of the amount, which the mutual fund would accumulate towards the end of the tenure of the SIP.

  • This estimation permits the individuals to opt for the right sort of scheme of the mutual fund.

What Are the Type of SIPs?

Here are some main types of Systematic Investment Plans one can choose to invest in:

  1. Top-up SIP

    Top-up SIP helps in making investments periodically in which an investor can increase the deposit amount when they have higher income available for investment. This brings out the best results for an investor while making investments.

  2. Perpetual SIP

    Perpetual way of investing means making an investment without a mandatory end date. Generally, SIPs come with an end term, that is, 1 year, 3 years, or 5 years, but in perpetual SIP, there is no such end date, making the investment more convenient.

  3. Trigger SIP

    Trigger SIPs work for investors who are well aware of the market movements. Working just like shares, these SIPs can be bought and sold at any time depending on the market conditions. The start date, date of redemption, or switch date can be set once the event occurs.

  4. Flexible SIP

    Flexible SIPs, as the name says, allow the investor flexibility of investment amount. The amount deposited in the Flexible SIP can be decreased or increased as per the investors’ financial condition.

How to Invest in SIP?

  • An investor should keep the following steps in mind when they think of how to invest in SIP:

  • The investors’ ultimate financial goal: The personal requirement of the investor

  • The investment horizon: By what time the results are needed

  • The risk appetite: By not falling into the market pressure and understanding their own risk bearing capacity

  • The SIP frequency: Whether to invest monthly, quarterly, annually or one time

  • The KYC documents: KYC documents are a must when going to start a SIP

Benefits of Investing in SIP

Systematic Investment Plan itself means investing your hard-earned money systematically that it earns fruitful results in the future. An investor attains several benefits while making investments in SIPs. Some of the benefits of investing in SIPs are:

  1. Makes You a Disciplined Investor

    One of the best investment options for beginners as well as experts, SIPs bring discipline to an investor’s life because of the regular investments made in this kind of Mutual Fund investment option unlike, the Lump Sum option.

  2. Power of Compounding

    A pocket-friendly amount invested in your SIP account leads to a handful corpus at the time of need because of the disciplined regular contribution. These investments at regular intervals for a pre-defined tenure show the power of compounding a small amount leading to a sufficient corpus in the future.

  3. The Rupee Cost Averaging Factor

    With SIP plans, you can invest a small sum of money every month that eventually adds up to a considerable corpus. The money multiplies due to the power of compounding interest.  It allows you to leverage the concept of rupee cost-averaging for improved gains. This means that the investor can invest more when the market is low and less when the market is high.

FAQ's

  • Q1. What are the benefits of SIP?

    Ans: The following are the benefits of investing in a SIP:
    • You can invest in small amounts continuously
    • You can choose for monthly auto-payment
    • Better long-term advantages than a one-time investment
    • No stress in regards to the market ups and the downs
    • Helps to plan the budget and manage expenses efficiently.
  • Q 2. Are SIPs equivalent to mutual funds?

    Ans: No, SIP is not equivalent to mutual funds. However, it is a medium of investing in mutual funds. In a SIP you will invest periodically than a lump sum amount.
  • Q3. Is SIP safer than lump sum investments?

    Ans: Yes, SIP is a safer option than lump-sum investment. Investment in a SIP has a low risk and the points of investment are spread out over a long period. The idea is simple the time the market is high, you can purchase some units of the fund, and the time the market is slow you can purchase the same unit on the equivalent amount.
  • Q4. How can I cancel a SIP?

    Ans: If you have started your SIP in an online mode, you can cancel your SIP by choosing the ‘Cancel SIP’ option for your upcoming transactions. However, if you have started SIP offline, you need to visit the nearest branch or get in contact with a relationship manager to have your SIP canceled. 
  • Q5. What is a Lump-sum Calculator?

    Ans: A lump-sum calculator calculates the maturity amount of a one-time or lump-sum investment made by the investor. You need to enter the amount of investment, tenure of investment, and expected rate of return to estimate the maturity amount and the returns on investment.
  • Q6. What is Delay Cost Calculator?

    Ans: Delay Cost Calculator aids you in understanding the impact of delaying your systematic investment by a particular year. You just have to put in your monthly investment amount, tenure of the investment, the anticipated return rate, and the anticipated delay in the investments. Delay Cost Calculator shows the amount of maturity if the investment was spread over a planned number of years and the amount of maturity in the delayed time and the cost of this delay.
  • Q7. What is SIP Advanced Calculator?

    Ans: SIP Advanced Calculator is an advanced form of the simple SIP Calculator. This calculator helps in evaluating the return after inflation. This tool gives a better idea of the maturity value considering inflation. You have to select the amount of monthly investment, expected rate of return, inflation rate to arrive at the maturity value, pre-inflation and post inflation, and tenure in years.
  • Q8. What are the types of SIPs available?

    Ans: To cater to various requirements of the investors, generally there are 5 different types of SIP plans available in the market. These are as follows: 
    • Top-up SIP
    • Perpetual SIP
    • Trigger SIP
    • Flexible SIP
  • Q9. Can I renew a SIP?

    Ans: Yes, the investors can renew SIP in case the existing SIP expires. To renew SIP, the investors need to quote the same FOLIO number (unique number allotted to each MF investor) through the financial advisor of his Asset Management Company (AMC). Generally, it takes 20-30 working days from the date of sending the request to renew the SIP plan.
  • Q10. What is the need for a SIP inflation calculator?

    Ans: The inflation calculator helps to understand the impact of inflation upon the money. This also enables us to understand the money that would be needed to meet the current expenses while keeping up with inflation.
Smart Investment Pack
Smart Investment Pack
Average Rating
(Based on 0 Reviews)
100% Capital Guarantee

SIP plans articles

Recent Articles
Popular Articles
Yes Bank SIP Plans

15 Jun 2022

Yes-Bank is the fourth largest private commercial bank operating...
Read more
SIP Plans for 5000 Monthly

06 Jun 2022

SIPs help you lower the risk of market fluctuations while making...
Read more
HSBC SIP Calculator

02 Jun 2022

Investment in funds provides many advantages making your...
Read more
10,000 Monthly SIP Plans

30 May 2022

SIPs (Systematic Investment Plans) attract a large majority of...
Read more
SIP Plans to Invest 2,000 Monthly

30 May 2022

Systematic Investment Plans method of Mutual Fund investment has...
Read more
Best SIP Plan for 5 Years Investment 2021
SIPs make a great way of investing in mutual funds. It is an excellent investment method to accomplish your short...
Read more
Best SIP Plans for 15 Years
Systematic Investment Plans are the new emerging investment options in India gaining huge popularity these days...
Read more
Best SIP to Invest for 10 Years
The Systematic Investment Plan or SIP allows you to choose a mutual fund plan and invest a fixed amount...
Read more
Best SIP for Long Term
Under a SIP, you invest a small sum of money at regular intervals in your selected mutual fund scheme. Investment...
Read more
SIP Plans for 1,000 Investment Per Month
SIPs are an excellent way for people on a budget to invest in market-linked markets and enjoy high returns. These...
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL