A SIP calculator helps you plan your investment journey effectively and make informed investment decisions by accurately estimating the potential returns of your systematic investment plan.
SIP Calculator
Monthly SIP Amount (₹) Monthly Amount you are planning to invest
Rate of Interest (% p.a.) Annual returns that you are expecting on your investments. Depends on the category of mutual fund you are investing in. E.g. You can expect 17%-18% returns on Small Cap funds, 15%-16% returns on Mid Cap funds and 12%-15% returns on Large Cap funds in the long run
Time period (In years) Higher the number of years you invest, higher the profits you can generate from Compounding effect
Total amount after 5 years
₹ 0
Total Invested
-
Total Interest
-
A SIP calculator is a useful financial planning tool designed to help you estimate the potential returns from your systematic investment plan in mutual funds or other financial instruments like stocks. It takes into account a host of factors like the investment amount, frequency, expected rate of return, and investment duration, to provide a projection of the returns that your SIP is likely to generate by the end of its tenure.
In addition to the estimated returns, the SIP plan calculator also displays the principal investment amount and the total future value of your investment. A SIP calculator is an invaluable tool for financial planning. You can use it to set realistic goals and adjust your investment strategies based on the predicted outcome.
A SIP calculator operates on a simple yet effective principle. It inputs the parameters you provide into a specific mathematical formula to project the growth of your investments over time. The formula that a typical SIP return calculator uses is as follows:
M = A × {[(1 + R)T − 1] ÷ R } × (1 + R)
Here,Note: The SIP investment plan calculator assumes a constant rate of return to estimate returns. This may not accurately reflect real-world performance since markets tend to fluctuate frequently. However, it can be used to get an estimate of the returns, which can be used to plan your investments.
A SIP investment returns calculator can be beneficial for you in more ways than one. Here is a quick overview of some of the many ways in which the tool can help you.
The systematic investment plan calculator available on the Research 360 platform is user-friendly and simple to use. All you need to do is follow the steps outlined below.
Once you specify these details, the Research 360 SIP calculator will instantly display the estimated returns from your investment, along with the principal amount and the total future value.
Here is a hypothetical example to help you understand how the returns from a systematic investment plan are calculated.
Assume you plan to invest Rs. 5,000 per month in a mutual fund SIP for a tenure of 10 years. The expected rate of return is 10% per annum. This translates to a return of 0.83% per month. By substituting these values in the above-mentioned mathematical formula, you can get the estimated amount you will receive at the end of the tenure.
M = Rs. 5,000 × [ {(1 + 0.0083)120 — 1} ÷ 0.0083 ] × (1 + 0.0083) = Rs. 10,32,760
If the total future value of your investment is Rs. 10,32,760, then the returns would be Rs. 4,32,760 [Rs. 10,32,760 - (Rs. 5,000 x 120 months)].
A systematic investment plan calculator has several benefits. Let us explore some of the key advantages of using the tool.
Some of the benefits of a systematic investment calculator include estimating returns, assisting in setting goals and formulating investment strategies, encouraging disciplined investing habits, and assessing different investment scenarios
Yes. The results that a mutual fund SIP calculator provides will be accurate. However, it is important to note that the tool assumes a constant rate of return throughout the tenure, which may not be possible to achieve due to market volatility. .
A SIP return calculator uses the following mathematical formula to estimate returns and the future value of your investment:
M = A × {[(1 + R)T − 1] ÷ R } × (1 + R)
Rupee cost averaging, disciplined investing, compounding, and investment flexibility are some of the key benefits of a systematic investment plan.
There is typically no maximum tenure for a systematic investment plan. You can continue investing in a SIP for as long as the mutual fund scheme is active or until you achieve your financial goals.
One of the many advantages of a systematic investment plan is that you can start investing at any point in time. A SIP eliminates the need for timing the market by averaging out your purchase cost over time.