SIP Calculator

SIP Calculator – Systematic Investment Plan Calculator

Investors who invest the first time can think that SIP’s and mutual funds are the same. The SIP calculator is the only online financial tool that calculates the returns on your SIP investments.

In Brief, what is SIP Calculator?

SIP is one of the most popular investment tools that allow investors to get an idea of the returns on their mutual funds. It is the process of investing money in mutual funds periodically which allows you to invest weekly, quarterly or monthly. SIP Calculator has 3 major inputs:

1. Monthly investment
2. Time period
3. And expected annual returns

At first, need to enter your monthly investment, for example, 5000/- per month.

Then here you need to enter how much time period you are planning to invest this 5000/- per month in about 10 years.

Finally, you need to enter how returns you expect from that investment, such as 15.

Anyhow the returns will vary depending on the fund performance you are investing in.

Benefits of SIP Calculators:

1. Helps you to invest the amount you want to invest in
2. Gives you a clear version of the total amount you have invested.
3. SIP calculators are a low initial investment.
4. The Calculator is easy to use and share results accurately.
5. It is a friendly user interface.
6. Endues the habit of investing regularly.

How does SIP Calculator work?

SIP calculator is the only productive mode for investing funds in mutual funds. SIP’s generally create a habit of savings that can help you in the future. “The SIP returns are calculated only as compound interest.” It uses the data you feed in to compute the absolute value for your investment in mutual funds. SIP Calculator helps determine the amount you should invest in SIP’s to reach a target after a certain year.

Here’s a suitable example to show you how the SIP calculator works in real-time:

Let’s assume you want to invest Rs. Five thousand per month for 10 years, and the expected rate of return is 10%. In the above case, you would earn a total target of Rs. 10 lakhs. Then take the step to input these values in the specified boxes, and the calculator gives you the target you would earn. And this is how you can tweak the values to see how your investment would turn out.

The intention of investing in mutual funds through SIP is to generate wealth in the long run. Accordingly, there are types of SIP to raise your exposure to the financial market.

Different types of SIP?

Top-up SIP

Top-up SIP calculator or Step-up SIP calculator is a one-way automated feature that will increase your SIP contributions after a specific period. A SIP top-up helps the investor to change the amount with their desired amount at regular intervals. Investors have the ability to limit the SIP Top-up amount after the SIP installment (including the Top up amount) reaches a pre-determined amount. Thus, Top-up SIP is the easy way to contribute a higher amount as your income rises.

Flexible SIP

Flexible SIP is a convenient feature for those who don’t earn a fixed amount every month, where you can alter your monthly investments as per your cash flows; whether you have a high cash flow or low cash flow, you can reduce the SIP amount each month.

Perpetual SIP

Here’s something called Perpetual SIP, known to be a long-term investment purpose. Investors generally opt to invest in mutual funds for six months, three years or even ten years. Here you can continue to invest in the fund through SIP for the long term.

The Outcome

The SIP calculator above provides only estimates based on inputs and does not guarantee any returns. This is because the return from any mutual fund mainly depends on the performance of the fund. Also, the actual return from the mutual fund investment can be neither higher nor lower than the estimate provided by the SIP Calculator.

To see how much your investment could grow, you can use our SIP Calculator.