SIP Calculator
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Total Amount
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Systematic Investment Plan (SIP) - Get to know more about SIPs and SIP Calculator
An SIP or a systematic investment plan is a smart and disciplined process of investing a certain amount of money in mutual funds at regular time intervals to meet your long-term financial goals. An SIP is an ideal mode of mutual fund investment for you to yield great returns over a span of time if you are just getting started with your investments. Investing through SIPs is becoming a popular investment option, especially among millennials, as it allows them to start small and is extremely lucrative. The best part of investing through an SIP is there is no ‘right’ time to do an SIP, you can start it anytime with just a few clicks to capitalize on the opportunities whether the market is bullish or bearish. Simply put, it gives you a roadmap to reach your financial goal.
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Benefits of SIPs at a glance
- Easy to start.
- More liquidity.
- Simplicity of choice.
- Rupee cost averaging.
- Power of compounding.
- Flexible investment options.
- Disciplined investment avenue.
- Ideal for long-term investment.
- Lucrative investment opportunity.
- Systematic tool for future planning.
- Convenient method to create long-term wealth.
How to use an online SIP calculator?
An SIP calculator is a simple and easy-to-use financial tool that allows you to estimate the return on SIP investments after your tenure gets over. It can give you quick insights or a heads-up on your investment as you just need to enter the monthly investment amount that you want to start your SIP with, the number of years for which you want to stay invested, and the expected annual rate of return. As soon as you put in your inputs, hit on the ‘calculate’ button, and the SIP calculator will show you the estimated amount you are likely to earn after your investment tenure is complete. Please note that the SIP calculator does not consider exit load and expense ratio (if applicable), and the actual return can vary as per mutual fund schemes
How does an SIP calculator work?
The SIP calculator works by putting in the values. You need to enter the amount of SIP, frequency, duration, and expected returns. The SIP calculator is derived from the compound interest formula, as compounded interest powers the mutual fund returns. Let’s understand the SIP calculator with a mathematical formula.
M = P × ({[1 + i]n – 1} / i) × (1 + i)
Where,
- M is the amount you receive on maturity or the corpus
- P is the amount you invest at regular time intervals
- n is the number of payments you have made
- i is the periodic rate of interest
Let’s say, you want to start an SIP to secure your child’s future on his/her first birthday as giving a gift of SIP to your child is a smart step toward your financial planning. And, you want to start an SIP of Rs. 3,000 per month for 18 years at a periodic rate of interest of 12%. The monthly rate of return will be 12%/12 = 1/100 = 0.01
Hence, M = 3,000 × ({[1 +0.01 ]^{216} – 1} / 0.01) x (1 + 0.01)
Which gives Rs. 22,96,318 approximately in 18 years
Invested amount: Rs. 6,48,000
*Estimated returns: Rs. 16,48,318
Future value: Rs. 22,96,318
Please note - The estimated returns are subject to change as per the market conditions!
Advantages of an SIP calculator at a glance
- Instant and quick results.
- Easy to use and comprehend.
- More informed investment decisions.
- Unlock insights on estimated returns.
- Adjust your results for inflation.
How to use Investifyd’s SIP calculator?
You can use our calculator to get quick insights on your SIP in just a few clicks by entering the monthly investment amount, the number of years you want to do your SIP for, and the expected rate of return
Once you put in the values you can also schedule a quick call with our experts to know more about the mutual funds schemes that best fit your risk profile and investment goal. We make sure that the entire investment process is seamless and smooth with utmost transparency and end-to-end support.
Why should you invest in an SIP with Investifyd?
Investifyd is your one-stop destination for all your financial goals through SIPs as we have got you financially covered. With us you can hassle-free plan your SIP investment based on the amount you would like to start with and tenure. We have a team of experts who have a decade-long experience in the financial domain and deep industry expertise in ascertaining your risk profile before suggesting any aggressive or conservative fund. Not just that, we understand your goal and share our insights on the basis of what you are looking forward to achieving through your investment. Start dreaming for a future that you have always wished for by leaving your SIP-related hassles, planning, and management to us.
SIP calculator FAQs
What is the minimum amount with which I can start my SIP with?
You can start investing in an SIP through a minimum amount of Rs. 500 per month or in certain schemes with as low as Rs. 100 per month.
What is the difference between an SIP and a mutual fund?
An SIP is a systematic method or mode of investing, or a recurring form of investment into mutual funds.
Can I invest in debt and hybrid mutual funds through my SIP?
Yes, you can start your SIP in debt and hybrid mutual funds as well as it is not confined to equity mutual funds.
Can I pause my SIP?
Yes. However, it is only allowed for a few installments and in case of uncertainty; it is better to stop the SIP and start anew when you can. Please note that your bank may charge you a penalty in case of insufficient funds or missing the auto-debit payment, so it is suggested to get the details beforehand.
Can I change/modify my SIP?
You can learn more about the top-up SIP facility, which allows you to increase the amount of the SIP installment with a fixed amount at a determined time interval. You can increase or decrease the tenure as per your wish and increase or reduce your SIP installment as per your convenience, it is suggested to get these details beforehand.
Can I cancel/stop my SIP?
Yes. You can cancel/stop your SIP any time you want. AMCs do not impose any penalty for discontinuation of an SIP, but in case of withdrawal there could be an exit load depending upon the nature of the scheme, so it is suggested to get the details beforehand.
Can I renew my SIP?
Yes. You can renew your existing SIP anytime during the duration of your SIP or when it ends.