SIP Calculator
The Systematic Investment Plan calculator allows you to estimate the potential growth of your SIP investment based on your selected time frame.
- Invested Amt
- Wealth Gained
Invest Smart, Invest Regularly With SIP.
What Is a SIP (Systematic Investment Plan) Calculator?
A SIP (Systematic Investment Plan) calculator is an online tool that helps you estimate the future value of your investments made through regular SIPs in mutual funds. It calculates how much wealth you can accumulate over time based on three key inputs: your monthly investment amount, the investment duration, and the expected annual return rate.
The SIP calculator provides a quick snapshot of:
- Total invested amount
- Estimated returns
- Maturity amount at the end of the tenure
This tool is especially helpful for goal-based investing, as it lets you adjust variables and plan for financial objectives like education, home purchase, or retirement. It's easy to use, eliminates guesswork, and helps you make informed, disciplined investment decisions.
How Does SIP Return Calculator Work?
A SIP Return Calculator Online estimates potential returns based on your weekly, monthly, or quarterly investment frequency. The Yearly SIP Return Calculator and Monthly SIP Return Calculator use the expected rate of return and investment duration to project maturity value. However, actual returns may differ due to market fluctuations affecting SIP performance.
How Can an SIP Return Calculator Help You?
An SIP return calculator is a convenient tool that helps you understand how your investments could grow over time. By entering details such as the monthly investment amount, investment tenure, and expected rate of return, the calculator provides an estimate of your potential corpus at the end of the period. It allows you to plan effectively for financial goals, compare different mutual fund schemes, and make informed investment decisions without relying on guesswork, ensuring a disciplined and goal-oriented approach to wealth creation.
SIP Return Calculation Formula
If you're still wondering how to calculate SIP returns, the SIP Calculation Formula provides a clear estimate of your investment's potential growth:
A = P × {([1 + r]^n – 1) / r} × (1 + r)
Where:
A is the maturity amount
P is the amount invested at regular intervals (monthly SIP)
n is the total number of SIP payments
r is the periodic (monthly) rate of return
If a fund gives an expected annual return, we cannot simply divide it by 12 to get the monthly return.
For example, taking 12% annual return as 12 ÷ 12 = 1% per month is incorrect because returns compound. To convert annual return into effective monthly return, use:
Monthly Return (r) = (1 + Annual Return)^(1/12) – 1
For a 12% annual return:
r = (1 + 0.12)^(1/12) – 1
≈ 0.0095 or 0.95% per month
Example Calculation:
Suppose you invest ₹2,000 per month for 12 months at an annual return of 12%.
As shown earlier, the effective monthly return is:
r = (1 + 0.12)^(1/12) – 1 ≈ 0.0095 (0.95%)
Now applying the SIP formula:
A = P × {([1 + r]^n – 1) / r} × (1 + r)
Plugging the values:
P = 2,000
r = 0.0095
n = 12
A = 2,000 × {([1 + 0.0095]^12 – 1) / 0.0095} × (1 + 0.0095)
This gives a maturity amount of approximately:
A ≈ ₹25,532 in one year.
How to Use the 5paisa SIP Calculator?
The 5paisa Systematic Investment Plan Calculator makes it easy to estimate your potential investment returns in just a few steps:
- Enter your monthly investment amount (e.g., ₹1,000).
- Set your investment duration (e.g., 10 years).
- Input the expected annual return rate (e.g., 12%).
Click ‘Calculate,’ and the SIP calculator instantly shows how much your investment could grow over time. This user-friendly tool simplifies planning and helps you make informed investment decisions.
Advantages of Using the 5paisa SIP Calculator:
1. Makes investment planning straightforward and simple.
2. Allows experimentation with different investment amounts and timeframes.
3. Helps visualize how your wealth could grow over time.
4. Enables adjustment of variables to match your financial goals.
5. Assists in choosing the right SIP scheme.
6. Supports smarter and more informed financial decisions.
How to Start an SIP Investment?
Starting a SIP mutual fund investment is simple and effective. Follow these steps to begin:
Set Your Investment Goals: Define your financial objectives—wealth accumulation, retirement planning, or child’s education.
Choose the Best SIP Plan to Invest: Compare mutual funds based on past performance, risk level, and fund category and choose the plan that suits you the best.
Use a SIP Investment Calculator: Estimate potential returns by entering your monthly contribution, tenure, and expected return rate.
Select a Mutual Fund & Register: Open an investment account with a fund house or online platform. Complete KYC verification.
Decide Investment Amount & Frequency: SIPs can be monthly, quarterly, or weekly, based on your preference.
Automate Your SIP Contributions: Link your bank account for hassle-free deductions.
By understanding how to invest in SIP, you can make informed decisions and maximize returns with a structured investment approach.
Use SIP for Different Goals
SIPs are versatile and can help you save for various life goals:
- Short-term goals (1-3 years): Like buying a smartphone or planning a vacation
- Medium-term goals (3-7 years): Such as buying a car or saving for a house down payment
- Long-term goals (7+ years): Like retirement planning or children's higher education
For example, if you want to save ₹5 lakhs for your child's education in 10 years, a SIP calculator can tell you how much to invest monthly to reach this goal.
Tax Benefits On SIP Investment
While SIPs do not directly offer tax benefits, investing in Equity Linked Saving Schemes (ELSS) through SIPs can help you save on taxes. ELSS investments qualify for a tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. However, it’s important to note that ELSS funds come with a mandatory three-year lock-in period, making them a great option for long-term wealth creation along with tax savings.
Aditya Birla Sun Life SIP Calculator
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Choose from our diverse range of funds
- Equity.
- Mid Cap.
- -6.70%1Y Return
- 30.66%5Y Return
- 25.75%
- 3Y Return
- Equity.
- Small Cap.
- -6.80%1Y Return
- 31.80%5Y Return
- 21.91%
- 3Y Return
- Equity.
- Small Cap.
- -6.51%1Y Return
- 29.35%5Y Return
- 21.06%
- 3Y Return
Frequently Asked Questions
An SIP calculator helps you estimate future returns, plan investments, and compare different scenarios. It saves time by avoiding manual calculations and gives a clear picture of how your money can grow over time.
Yes, an online SIP calculator helps you estimate how much your investment could grow based on your monthly investment, duration, and expected returns. However, actual returns may vary due to market ups and downs.
No, an SIP calculator only provides an estimate. Since mutual funds are market-linked, actual returns can be higher or lower than expected. The calculator is useful for planning but not for exact predictions.
No, SIPs don’t have a fixed interest rate like fixed deposits. Returns depend on the performance of the mutual fund. Equity SIPs can give 10-15% annually, while debt funds generally provide lower returns.
You can start an SIP with as little as ₹100 or ₹500 per month, depending on the mutual fund. There’s no maximum limit, and you can increase your SIP amount anytime to grow your investment faster.
Yes, most mutual funds allow you to change your SIP amount. You can increase it, decrease it, or even stop and restart based on your financial situation and investment goals.
There’s no fixed limit on how long you can invest in SIPs. You can continue for 5, 10, or even 20+ years, depending on your financial goals and how long you want to build wealth.
No, SIP is just a way of investing in mutual funds. Mutual funds are investment products, while SIP helps you invest small amounts regularly instead of a lump sum all at once.
Yes, most mutual funds let you pause or stop your SIP whenever you need to. You can take a break for a few months or stop it completely without any major penalties.
Yes, some mutual funds allow skipping SIP payments for a few months without penalties. However, skipping too often might lead to your SIP being canceled, depending on the fund’s rules.
Choose a mutual fund based on your risk appetite and financial goals. Equity funds suit long-term wealth creation, while debt funds are safer for stability. Research past performance, fund manager experience, and expense ratios before starting a SIP.
To reduce your SIP duration, increase the monthly investment amount or choose a fund with potentially higher returns. However, higher-risk funds may be involved. Regularly reviewing and adjusting your SIP strategy can help you achieve goals faster.
There’s no strict limit; you can start with as little as ₹500 per month. The amount depends on your financial situation, goals, and risk appetite. Consistency matters more than the amount, as regular investments compound over time.
SIP invests in mutual funds with potential market-linked returns, whereas recurring deposits offer fixed interest in banks. SIP carries market risk but can yield higher growth, while recurring deposits are low-risk with guaranteed but modest returns.
Investing ₹1,000 monthly via SIP for ten years can accumulate significantly, depending on returns. With an average 10% annual return, it could grow to around ₹2.1–2.5 lakh, demonstrating the power of compounding over time.
₹5,000 monthly SIP for five years can grow substantially. Assuming an 8–10% annual return, the investment could reach approximately ₹3.5–3.8 lakh. Market performance affects exact growth, highlighting SIP’s long-term compounding benefits.
Investing ₹3,000 monthly for five years through SIP can potentially grow to around ₹2–2.2 lakh at 8–10% annual returns. Regular contributions, even moderate amounts, help build wealth over time thanks to compounding.
₹1,000 monthly SIP for five years can grow to roughly ₹75,000–₹85,000 at an 8–10% annual return. Small, consistent investments accumulate steadily, making SIP an effective tool for disciplined long-term savings.
₹4,000 monthly SIP for ten years can grow to approximately ₹7–8 lakh, assuming 8–10% annual returns. The exact amount depends on market performance, but regular investing over a decade demonstrates the strength of compounding.
Disclaimer: The calculator available on the 5paisa website is intended for informational purposes only and is designed to assist you in estimating potential investments. However, it is important to understand that this calculator should not be the sole basis for creating or implementing any investment strategy. View More..