You wants to invest in Mutual funds through SIP but don’t know how much return you will get? Then don’t worry this SIP Calculator online tool will help you to calculate returns on SIP investment.

Investment Amount is required
Expected Annual Returns is required
Investment Period is required

What is a SIP Calculator?

A (Systematic investment plan calculator) SIP Calculator online is a powerful tool designed to help you to calculate your project potential returns on your mutual fund investments across various timeframes, ranging from weeks, months to 40 years. By adding your investment details, this SIP return  calculator will provide you estimates on your mutual fund returns, total investment, wealth accumulation, and maturity value. 

However, it’s important to note that while the mutual fund calculator only offers you valuable insights, it doesn’t calculate actual returns offered by mutual fund scheme companies because the actual rate of returns depends on various factors. These factors can include market fluctuations, fund performance, and economic conditions. 

Best Mutual Funds

Mutual FundsExpected Returns
Kotak Emerging Equity Fund+28.58%
PGIM India Midcap Opportunities Fund+27.49%
Nippon India Small Cap Fund+38.95%
Kotak Small Cap Fund+31.35%
Nippon India Growth Fund+32.02%

We don’t recommend these funds. This Only For Educational Purpose

How can a SIP Calculator Help You?

Are you tired of struggling with complicated math to figure out how much money you’re making? We understand the frustration. That’s why we’ve developed this user-friendly SIP value calculator to simplify the process for you. Our calculator can tell you how much returns you will make from your investment in a certain time period, like a month or a year. Knowing how much you could earn is really important for making smart choice.

With this calculator, you can:

  • Easily determine the total amount you’ve invested.
  • Obtain an accurate estimate of the wealth you stand to gain.
  • Calculate the maturity value of your investment with precision.
  • By offering these comprehensive features, our calculator empowers you to make smarter investment choices with ease.

How does SIP Returns Calculator Work?

If you want to know how our calculator basically works let’s break it down. Our calculation method is straightforward yet effective. We use a precise formula given below to calculate your expected returns.

Formula: 

M = P × ({[1 + i]^n – 1} / i) × (1 + i)

M Represents the amount you receive upon maturity.
P Denotes the sum you invest at regular intervals.
N Stands for the number of payments you’ve made.
I Represents the periodic interest rate.

Now I will explain to you with an example how it works. Suppose you’re investing ₹500 per month for 2 years at a periodic interest rate of 10%. 

The monthly rate of return would be approximately 14%/12 = 0.00833333333.

Rate of return per month would be 14%/12 = 0.00833333333

Using the formula:

M = 500 × ({[1 + 0.00833333333]^24 – 1} / 0.00833333333) × (1 + 0.00833333333)

Your approximate final maturity amount would be ₹13,334.

How to use a SIP Calculator?

To use the SIP return calculator effectively, follow these simple steps:

  • First enter your monthly investment amount.
  • Then enter the duration of your investment in years
  • Then enter the expected rate of returns you will get.
  • Then click on the calculate button.
  • After that it will generate a calculated answer for you about how much estimated amount you will get after investment.
How to use SIP Calculator guide

Benefits of SIP investment as compare to Lump Sum

  • The main benefit of a SIP is that you start your investment through a very small amount like 500 per month. But for lumpsum you have to invest a large amount.
  • In SIP you can invest for a short term as well as long term. Like if you want to withdraw your money after a week or month you can. And You can cancel your plan at any time. But in Lump Sum you have to invest for a longer term like 10 years or more.
  • The main benefit of SIP is that we save and invest a certain amount of money every month automatically.
  • And SIP ensures that they only buy more funds when the market is red and buy a  lesser fund when the market is high. Because of that your cost will be average. And because of that the volatility of the market will not affect you. And from this point it is proved that they followed a world best investor Warren Buffett strategy. He said “be fearful when others are greedy and greedy when others are fearful.
  • SIP has very low investment risk as compared to lumpsum. Because in SIP we invest small amount and in lumpsum we invest high amount.
  • One of the main benefits of SIP is their ability to facilitate diversification even with a very small amount of investment. You can invest in a wide range of assets like stocks, bonds, mutual funds, exchange-traded funds (ETFs). With this diversified portfolio the risk associated with your investment would be reduced.  But this option is not available in Lump Sum.
  • In SIP Market Volatility can not effect on your investment because of rupee cost averaging. By this technique when the market goes down you will buy more units and when market goes up you can buy fewer units. So, by this method you can average out the purchase price of units. And the effect of market fluctuation will be very low.

Types of SIP

There are five types of SIP which are available in the market. And each of these six types of SIP have been created to fulfill a certain need or requirement.

Regular SIP: This is offered by almost all of the fund houses. Basically it means that you are investing a predefined amount at regular intervals and for a fixed time period. For example, I decided to invest 5000 every month for a period of one year in a particular scheme. So in which the predefined amount is five thousand, regular interval is monthly and investment is for a fixed time period of one year.

Perpetual SIP: It means that the amount will remain predefined along with the frequency of investment but you will not define the tenure. If I continue from the previous example the amount would be 5000 and frequency of investment will be monthly but money will keep investing till such time that i provided the instruction to stop the sip.

Top SIP: It increases the SIP amount either by a fixed amount or percentage every 12 months. Now you may ask how it could be relevant to you. If you are in a salary job you know that your salary will increase the next year of course the quantum may differ. So top up SIP allows your investment to also keep pace with your salary and with inflation.

Flexi SIP: By its very name it is flexible in nature so this enables you to make changes in either investment amount or in the date. So, the investor with any sort of irregular money flow either by the way of income or by the way of expenses can just adjust their SIP amount based on their financial conditions.

Multi SIP: This SIP is for those who require ease and convenience of their transaction. So, multi SIP allows a person to invest in multiple schemes of the same fund house through a single SIP or transaction.

Tax on SIP Mutual fund

SIP is the best option for investors but it does not mean that you don’t have to pay tax in SIP. But yes, you have to pay tax on SIP mutual funds tax. Here are the details of tax implications.

  • If you withdraw your equity mutual fund within 1 year. Then 15% Short-term capital gains tax will be applied.
  • If you withdraw your equity mutual fund after 1 year. Then 10% long-term capital gains tax will be applied. But if your income is under 1 lac then tax will not be applied.
  • If you withdraw your debt mutual fund before 3 years  Then Short-term capital gains tax will be applied according to your income-tax slab.
  • If you withdraw your equity mutual fund after 4 years. Then 20% long-term capital gains tax will be applied after indexation.

Video Guidance about SIP Calculator

Frequently Asked Questions

SIP stands for Systematic Investment Plan. Investing regularly in a stocks market every month is called SIP

Yes there is a difference between SIP and mutual funds. Mutual fund is a products in which you are investing while SIP is a method of investing in mutual funds. And SIP allows investors to invest regularly in mutual funds by contributing fixed amounts at regular intervals.

It depends in which plan you have invested. Because so many plan allows the investor to modify the amount they have invested. And there are so many plans that don’t allow this.

Yes, you can stop your investment at any time and withdraw your money. 

If you invested RS 1000 every month for 5 years at 12% interest rate. Then at the end of this investment you will earn ₹ 6,97,017. 

There is no maximum tenure limit for SIP investment. So, it depends on you how long you can investment. 

If you invested RS 5000 every month for 5 years at 12% interest rate. Then at the end of this investment you will earn ₹ 4,12,432. 

Yes, SIP (Systematic Investment Plan) is halal in Islam.

If you invested RS 5000 every month for 5 years at 12% interest rate. Then at the end of this investment you will earn ₹ 4,12,432. 

If you invested RS 1000 every month for 5 years at 10% interest rate. Then at the end of this investment you will earn ₹ 78082.

The minimum amount to start SIP investment is ₹ 500 rupees.

Reference

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