SIP Calculator

SIP Calculator - Systematic Investment Plan Calculator Online

SIP calculator is a free online tool to calculate returns of your monthly investments. It shows an estimated value that you would get if you keep investing for a certain period. You need to provide basic input values like how much amount you are investing monthly, how much return are you expecting and for how long you want to invest.

Explore our tool to find out how much monthly investment you can make to secure your future. You would get more returns if you invest for the long term.

What is SIP?

Systematic Investment Plan (SIP) is a method to invest a certain amount in mutual funds every month. You get compunding interest on the investments you make. The longer you invest the more you get in returns.

Advantages of SIP

• You get benefit of market up and down. When market is down, you get more units and when market is up, you get less units.
• The returns are reinvested into the mutual fund so you get compunding interest on the whole amount including pricipal and interest.
• SIP allows you to make small investments and grow your wealth.

How Do SIP Calculators Work?

SIP calculator is a simple tool that uses a specific formula to calculate the returns on your monthly investments. It depends on how much investments you make monthly, how much returns you are expecting and for how long you are investing in the mutual fund. It uses following formula to calculate returns:

Where:

• M is Maturity amount
• P is Monthly investment amount
• i is Monthly interest rate (annual interest rate / 12 / 100)
• n is duration in months.

We can take an example to understand how it works. If you are investing ₹12,000 per month in a mutual fund and expecting 12% return per annum for 15 years, you can calculate it like this:

• Monthly investment (P) = ₹ 12,000
• Annual interest rate = 12%
• Monthly interest rate (i) = 12% / 12 / 100 = 0.01
• Duration (n) = 15 years = 180 months

If you calculate the result of above formula, you will get the maturity value (M) as ₹60,54,912.

Where you have invested only ₹21,60,000 in 15 years but you get ₹60,54,912 total returns.

Benefits of Using Our SIP Calculator

1. Accurate Results Our SIP calculator gives accurate results. We continuously work to improve our calculators.
2. User-friendly interface It is very easy to use. Only fill amount, return rate and time period and you get the results instantly.
3. Time-saving It saves your time as you dont have to go through pen and paper to solve a big formula.
4. Customizable Inputs You can use drag controls or fill values manually to get the desired results.

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