Systematic Investment Plan (SIP) Calculator
Investment Period
Monthly Investment Amount
Expected Annual Return
%
Years
yrs
Step Up
%
Investment
Expected Return
Expected SIP Return
Total Amount Expected
195,206
Total Amount Invested
150,000
Total Gain
45,206
| Periods | Investment Amount | Return on Investment | Balance Amount |
|---|---|---|---|
| 1 | 2500 | 20.83 | 2520.83 |
| 2 | 2500 | 41.84 | 5062.67 |
| 3 | 2500 | 63.02 | 7625.7 |
| 4 | 2500 | 84.38 | 10210.08 |
| 5 | 2500 | 105.92 | 12815.99 |
| 6 | 2500 | 127.63 | 15443.63 |
| 7 | 2500 | 149.53 | 18093.16 |
| 8 | 2500 | 171.61 | 20764.77 |
| 9 | 2500 | 193.87 | 23458.64 |
| 10 | 2500 | 216.32 | 26174.96 |
| 11 | 2500 | 238.96 | 28913.92 |
| 12 | 2500 | 261.78 | 31675.7 |
| 13 | 2500 | 284.8 | 34460.5 |
| 14 | 2500 | 308 | 37268.5 |
| 15 | 2500 | 331.4 | 40099.91 |
What is SIP Calculator?
A SIP (Systematic Investment Plan) Calculator is an online tool that helps you calculate the returns on your investment in a mutual fund through the SIP mode. SIP is a method of investing in mutual funds where a fixed amount of money is invested at regular intervals, usually monthly, for a fixed period of time. The SIP Calculator takes into account the investment amount, the frequency of investment, the duration of investment, and the expected rate of return, and calculates the total investment amount, the total returns, and the corpus accumulated at the end of the investment period. It can also help you compare different mutual fund schemes and choose the one that best suits your investment goals. Using a SIP Calculator can help you plan your investments better and make informed investment decisions.
How to use SIP Calculator?
To use a SIP Calculator, follow these simple steps:
- Enter the investment duration - This is the period for which you plan to invest in the scheme.
- Enter your investment amount - This is the amount you plan to invest every month.
- Enter the expected rate of return - This is the estimated return you expect to earn on your investment.
- Choose the compounding frequency - This is the frequency at which the interest on your investment is compounded, such as monthly, quarterly, half-yearly or annually.
- Get the result - The calculator will calculate the future value of your investment at the end of the investment period based on the information provided.
SIP Formula and Calculation with Example
The formula to calculate the maturity amount of an SIP investment is:
M = P * [{(1 + r/n)^(n*t)} - 1] / (r/n)
where:
M = Maturity amount
P = Monthly investment amount
r = Annual rate of interest
n = Number of times interest is compounded in a year
t = Time period in years
Let's say you start investing Rs. 5,000 per month in an SIP for 10 years with an expected rate of return of 12% per annum, compounded monthly.
Using the formula above, we can calculate the maturity amount as follows:
M = 5,000 * [{(1 + 0.12/12)^(12*10)} - 1] / (0.12/12)
M = 9,59,132.82
So, the maturity amount of the investment would be Rs. 9,59,132.82 after 10 years.
Benefits of using SIP Calculator
- Accurate results: The SIP Calculator at basiconlinetools.com uses a precise formula to calculate the SIP returns, ensuring that the results are accurate and reliable.
- Time-saving: The calculator provides instant results, saving time and effort in manual calculations.
- Customizable variables: The calculator allows users to customize variables such as the investment amount, investment period, expected return rate, and SIP frequency, making it easy to calculate the returns for different investment scenarios.
- Clear financial planning: The calculator helps in planning financial goals by providing a clear picture of the investment returns for the specified period.
- Educational value: Using the calculator can help enhance knowledge about the concept of SIP and its potential benefits for long-term investments.
- User-friendly interface: The SIP Calculator at basiconlinetools.com has a simple and user-friendly interface, making it easy for anyone to use, even those with limited financial knowledge.
- Comparison tool: The calculator can be used as a comparison tool for different SIP investment options, helping investors make informed decisions.
- Free to use: The SIP Calculator at basiconlinetools.com is completely free to use, with no hidden fees or charges.
Limitations of using GST Calculator
- Accuracy: While SIP Calculator provides a rough estimate of returns, it may not always be accurate. There are various factors that can impact the actual returns such as market fluctuations, inflation, and fund performance.
- Lack of Customization: SIP Calculators typically use predetermined values for inflation rate, rate of return, and investment period. As such, they may not provide the most accurate projection for everyone.
- Investment Decisions: While SIP Calculator can provide an idea of the returns, it should not be the sole factor in making investment decisions. Other factors such as personal financial goals, risk tolerance, and market conditions should also be considered.
- Limited Scope: SIP Calculator can only provide projections based on the information provided by the user. It may not take into account other investments or assets that the user may have, which can impact the actual returns.
- Technical Issues: Technical issues such as slow loading time, system crashes, or incorrect data input can impact the accuracy of the results. It is important to ensure that the calculator is used on a reliable and secure website.
Frequently Asked Questions
What is SIP in mutual funds?
SIP stands for Systematic Investment Plan, which is a mode of investing in mutual funds. In SIP, you invest a fixed amount of money at regular intervals, such as monthly, quarterly, or annually, instead of investing a lump sum amount at once.
How does SIP work?
In SIP, you choose a mutual fund scheme and invest a fixed amount of money at regular intervals, say monthly or quarterly. The amount gets debited from your bank account automatically and gets invested in the chosen mutual fund scheme. This helps you to invest regularly and in a disciplined manner, irrespective of the market conditions.
What are the benefits of SIP?
The benefits of SIP include disciplined investing, rupee cost averaging, power of compounding, and convenience. SIP allows you to invest regularly and in a disciplined manner, which helps you to achieve your financial goals. Rupee cost averaging helps you to average out the cost of your investments over a period of time, which reduces the impact of market volatility. The power of compounding helps you to earn returns on your investments, which can create a significant corpus over the long term. SIP is also convenient, as the amount gets debited from your bank account automatically.
What is rupee cost averaging?
Rupee cost averaging is a technique of investing a fixed amount of money at regular intervals, such as monthly or quarterly, irrespective of the market conditions. This helps you to average out the cost of your investments over a period of time, which reduces the impact of market volatility.
What is the power of compounding?
The power of compounding is a concept that helps you to earn returns on your investments, which can create a significant corpus over the long term. In compounding, you earn returns not only on your principal amount but also on the returns earned in the previous periods.
Can I change the amount of my SIP investment?
Yes, you can change the amount of your SIP investment anytime you want. You can increase or decrease the amount of your monthly investment as per your financial goals and investment objectives.
Can I stop my SIP investment?
Yes, you can stop your SIP investment anytime you want. You can either stop your SIP completely or pause it temporarily and resume it later.
What is the minimum amount required for SIP investment?
The minimum amount required for SIP investment varies from scheme to scheme and can range from as low as Rs. 100 per month to as high as Rs. 10,000 per month.
How long should I invest in SIP?
The duration of your SIP investment depends on your financial goals and investment objectives. Ideally, you should invest in SIP for the long term, say 5 to 10 years or more, to reap the benefits of compounding.
What are the different types of SIP?
The different types of SIP include top-up SIP, flexible SIP, trigger-based SIP, and perpetual SIP. In top-up SIP, you can increase your investment amount at regular intervals. In flexible SIP, you can invest different amounts at different intervals. In trigger-based SIP, you can invest based on market triggers. In perpetual SIP, you can invest for an indefinite period of time.
What is the difference between lump sum investment and SIP investment?
In a lump sum investment, you invest a large amount of money at once, while in SIP investment, you invest a fixed amount of money at regular intervals. Lump sum investment.