# SIP Calculator

A SIP (Systematic Investment Plan) calculator is an online tool that estimates potential returns from regular investments in mutual funds. Our SIP calculator helps you estimate how much wealth you can build over time with a fixed monthly investment, based on an assumed rate of return.

- Invested Amount
- Wealth Gained

- Invested Amount
- ₹10000

- Wealth Gained
- ₹11589

- Expected Amount
- ₹21589

Invest Smart, Invest Regularly With SIP.

## Yearly Breakdown

The total value of your investment after

**8 Years** will be

Year | Invested Amount | Wealth Gained | Expected Amount |
---|---|---|---|

2024 | ₹ 20,400 | ₹ 1,139 | ₹ 21,539 |

2025 | ₹ 20,400 | ₹ 24,934 | ₹ 45,334 |

2026 | ₹ 20,400 | ₹ 51,221 | ₹ 71,621 |

A SIP (Systematic Investment Plan) calculator is an online tool to estimate potential returns on SIP investments in mutual funds. It helps you plan by showing how much wealth you can create with regular, fixed investments over time.

**Key Features of SIP Calculator**

- ● Monthly Investment Amount: Enter your monthly investment amount you plan to invest.
- ● Investment Period: Specify the duration in Years (e.g., 5 years).
- ● Expected Return: Provide the anticipated annual rate of return.
- ● Total Investment: Calculates the total amount invested.
- ● Expected Amount: Estimates the future value of your investment.

Use our SIP calculator to start planning your investments and achieve your financial goals today.

SIP calculators work by simplifying the process of estimating your potential returns from a Systematic Investment Plan.

An SIP plan calculator works on the following formula:

M = P x { [(1+ i) n - 1] / i } x (1+i)

where;

**● M** is the amount you will receive on maturity (tentative).

**● P** is the principal you invest in.

**● i **is the rate of interest.

**● n** is the total number of payments that you make

**Here's a simple example to illustrate:**

Let's say you invest ₹2,500 every month (P = ₹2,500) in a mutual fund SIP. The expected annual return rate is 12% (i = 0.01) and you plan to invest for 1 years (n = 12 months).

Using the formula:

M = ₹2,500 x {[(1+ 0.01)^12 - 1] / 0.01} x (1+0.01)

M = ₹32,017

So, with an investment of ₹2,500 per month for 1 year at a 12% annual return rate, your estimated maturity amount would be approximately ₹32,017.

Remember, this is a simplified estimate and actual returns can vary based on market fluctuations. SIP calculators offer quick insights into potential outcomes based on various parameters.

Investing in Mutual Funds, like SIPs, doesn't promise guaranteed returns, making it tricky to predict future growth or how much to invest for goals. Here's where the 5Paisa SIP Investment Calculator steps in, offering a range of advantages for investors:

● **User-friendly:** SIP Calculator is easy to use, even if you're not a math expert. It's free and can be used as often as needed.

● **Clear Financial Insights:** SIP Calculator offers a transparent view of how your investments could grow, giving you a clearer financial picture.

● **Time Efficiency:** SIP Calculator automates complex calculations involved in SIP investments, saving time and effort compared to manual computations.

● **Goal Achievement:** Plan and attain financial goals by calculating the needed monthly investment for specific targets.

● **Smart Investment Choices:** With precise predictions, you can make wise investment decisions that match your risk tolerance and aspirations.

Imagine having a smart buddy who helps you crack the code of investing – that's 5paisa SIP Return Calculator! It's like a crystal ball that shows how your savings in Systematic Investment Plans (SIPs) can grow.

5paisa SIP Return Calculator provides you an insight into your mutual fund's growth over a set period, based on a defined rate of return and SIP contributions by putting in variables like investment amount, tenure, and expected rate of return. It helps in guiding your investment strategies effectively for a secure financial future. Plan ahead, play with the numbers to see what happens if you change things. Whether you're new to investing or are an expert, using 5paisa SIP Return Calculator is a smart way to plan your money and reach your goals.

Use SIP Calculator or consult a financial advisor for personalized investment guidance.

● **Choose a Mutual Fund:** Research and select a mutual fund aligning with your goals and risk tolerance.

● **Document Preparation:** Gather PAN Card, address proof, cheque-book, and photo.

● **KYC Compliance: **Complete your KYC verification by providing necessary info like name, contact, DOB, and address. Upload PAN card and address proof, followed by a video call for confirmation.

● **Register Online:** Open an account with the chosen mutual fund through their website or app. Provide personal and bank details.

● **Select SIP Amount:** Decide the amount you want to invest regularly (monthly/quarterly) and the preferred date for deduction.

● **Set Duration:** Choose the duration you want to continue investing in the SIP. The duration could range anywhere between 6 months to 10 years, based on your investment goals. It can be modified later.

● **Bank Mandate:** Provide a one-time bank mandate for automatic deductions from your account.

● **Monitor and Adjust:** Track SIP progress, tweak as goals change.

To use 5paisa SIP Calculator, just enter your inputs:

● **Monthly Investment Amount:** Decide how much money you want to invest each month.

● **Investment Period: **Choose the number of years you plan to invest for.

● **Expected Return: **Estimate the percentage of profit you think you might make each year.

When you input these values, SIP Calculator will show you how much you'll invest in total, the profit you might earn, and the total value of your investment in the end.

Remember, these results are based on your information and expectations, so keep an eye on your plan as things might change over time due to market fluctuations. This calculator helps you make better choices for your financial future.

#### Frequently Asked Questions

Follow these steps to use SIP calculator for investment planning.

**● Choose a Mutual Fund: **Pick one that matches your risk tolerance.

**● Decide on Investment Duration:** Determine how long you'll invest based on your investment goal, For instance, if you are investing to buy a house in 5 years, then keep the duration as 5 years.

**● Select SIP Amount:** Choose an amount you're comfortable investing regularly.

**● Enter Expected Returns: **Put in your anticipated yearly returns in the 5Paisa SIP Calculator.

**● See Future Value:** The calculator shows your potential investment value at the end.

SIPs generally don't have a strict minimum or maximum investment period, except for tax-saving/ELSS plans, which typically have a lock-in of 3 years. However, be cautious about potential exit fees if you withdraw before a certain period. Financial experts generally advise investing in equity mutual funds for at least 3 to 5 years. This time frame allows for potential market volatility to balance out, leading to favorable returns from your SIP investments.

Yes, you can handle multiple SIPs at the same time.

You can begin SIP investments in mutual funds with as little as ₹100 per month. Nevertheless, please keep in mind that the minimum SIP amount can differ from one AMC to another, so it's advisable to review the terms of the asset management company.

There are four common types of SIPs found in the market:

**● Flexible SIP: **This type allows you to modify your SIP investment amount as needed.

**● Step-Up SIP: **Also known as a top-up SIP, this lets you increase your SIP investments at regular intervals.

**● Perpetual SIP:** With a perpetual SIP, your investment continues indefinitely, without a fixed tenure or end date.

**● Trigger SIP: **This type of SIP operates based on specific events you set.

**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..