SIP Calculator

A Systematic Investment Plan (SIP) calculator is an online financial tool that can help to calculate the returns you would earn on your SIP investments. The calculator can be highly effective in automatically computing complex financial calculations, without the need for a pen and paper. You merely need to provide a few inputs, and the calculator arrives at the result in a matter of seconds.

We can calculate the SIP Investments by simply adding the following parameters:
1.    Monthly investment amount
2.    Investment period
3.    Expected annual returns

You need to enter the amount you wish to invest in a fund every month, it can be as little as Rs. 500 or as high as Rs. 10,000 (or more), depending on the amount you wish to invest.
Next, you should add the time interval for which you want to stay invested in the mutual fund. Generally, fund houses require investors to stay invested in the SIP for at least six months. 

However, you may want to stay invested for a more extended period (say three years or more) which could help you achieve reasonable returns.

After that, you need to enter the rate of return you expect on the investment. This value is generally based on the fund's past performance.

Once you put the following values, hit on the 'calculate' button to find out the corpus you could earn in the specified period. You can adjust the values to find out what works best based on your budget and goals.

It is used to calculate a rough estimate of the maturity amount, based on the projected annual return rate.
 

According to some mutual fund experts, SIP can be more profitable than investing a lumpsum amount. SIP Investments help you to become financially disciplined and helps you to form a habit of saving some amount for your future.

An online SIP calculator is a beneficial tool that will help you to calculate the estimated returns you’ll earn after a specific period of time.

Some key benefits of the SIP Mutual Fund Calculator are:

- Estimate maturity amount
The SIP calculator helps investors to estimate their potential returns at the end of the investment duration. It also helps in estimating the monthly investment amount if the investor knows how much they want to earn at the end of their investment tenure.

Easy to use
SIP calculators are quite easy to use and navigate. One has to enter the required details to estimate their returns. Also, the calculator saves investors time from doing complex calculations. The calculator estimates the maturity amount and also the monthly investment amount within seconds.

Graphical and Tabular Representation
The calculator shows the return estimates in both graphical and tabulated forms. This helps investors to interpret the returns and make informed decisions easily.

Maturity amount based on growth scenarios
The SIP calculator estimated the returns based on three growth scenarios. The three growth scenarios are based on above-average, average, and below-average returns. Therefore, potential investors can choose the scenario that aligns with their investment requirements and start investing.

Informed Decision
Investors can compare multiple return scenarios using the free online SIP calculator and also make the right investment decisions that will help them earn significant returns.

SIP calculators estimate the investment returns using the compound interest formula. The calculator considers the frequency of compounding and estimates the returns. Furthermore, the SIP calculator requires one to enter the amount they want to invest on a monthly basis, the duration of the investment, and the expected rate of return on the SIP.
The online SIP calculator will automatically calculate the maturity amount and also the wealth to be gained from the mutual fund investments.

The formula used by the SIP Calculator is: 
M = P x { [(1+i)n - 1] / i } x (1+i)

where:
• M is the amount you are due to 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.

People often get confused between SIPs and mutual funds and think that either SIPs and mutual funds are same or they are different. The fact is that SIP is a style of investing in mutual fund scheme or in stock/investment avenue. It is an investment vehicle used to invest in a particular mutual fund periodically.

Yes you can anytime check your SIP returns with our 5paisa SIP investment calculator and increase or decrease the SIP amount whenever you want.

No you can not only invest in equity mutual funds but also in debt and hybrid mutual funds through SIPs.

There are different types of SIPs available in the market
- Step-up or Top-up SIP: It enables you to increase your investment amount automatically at specified time intervals at a particular amount or percentage.
- Perpetual SIP: It enables you to keep investing as long as you wish to stay invested without any end date.
- Trigger SIP: It lets you start your investing journey during a specific period, event, NAV, etc.
- Flexible SIP: It helps you to change the investment amount whenever you want as per your preference.

Yes you can renew your SIP investments whenever you want. AMC companies even give you the option to cancel its automatic renewal feature.

Yes, you can pause your investments in SIP anytime you want. Mutual fund companies provide the option of pausing your SIP investments for a specific time period.

To calculate SIP returns manually you should know the future value formula:
FV = P [(1+i)^n-1]*(1+i)/i
where,
FV = Future Value of your SIP in mutual funds
P = SIP amount you invest in mutual funds
i = compounded rate of return
n= Investment duration in months
The returns are compounded for every SIP instalment.
Alternatively, you can use the XIRR function in an excel sheet to compute SIP returns.

You can log in to the mutual fund house website using your folio number or PAN number. Select the scheme and amount or number of units you wish to redeem. Upon successful redemption, the amount will reflect in your bank account.

Firstly, download the 5paisa App from App Store or Play Store. Next, create your profile, and complete the KYC procedure that is completely online and paperless. To proceed, complete the registration process by providing all the necessary details. Choose the plan that you wish to invest in, select the SIP option and invest. Investing through 5paisa app is as easy as online shopping and can be done within a couple of minutes.
 

SIP is a method of investing in a mutual fund. The taxability of mutual funds depends on their type and the period of investment. So, a SIP is not always tax-free. If you invest in an equity-linked saving scheme ELSS mutual fund, the returns will be tax-free. If you invest in equity mutual funds and invest for 12 months, you will receive short-term capital gain and pay tax @ 15% + cess + surcharge. However, if you stay invested for more than 12 months, then you will earn long-term capital gains and pay tax @ 10% + cess + surcharge if the gain is more than Rs 1 lakh.

SIP is a better investment option in comparison to FD especially if you consider the flexibility of investment, advantage of diversification, tax benefits, and higher returns. That is why it is better to invest in a systematic investment plan than in fixed deposit.

While investing in a mutual fund, SIPs are a much better option than lumpsum as the SIP solves the three big problems that people face while starting their investing journey - lack of adequate investible surplus, lack of discipline, and the fear of volatility in the stock market. 

There is no limit to the amount you can invest in a SIP. The minimum amount that you can invest is Rs. 500 per month.

SIP account is an arrangement made by the mutual fund houses which helps investors to invest a small amount of money into their choice's mutual fund plan at regular intervals. Having an active SIP account helps you instil a sense of financial discipline over time as you are forced to set aside a fixed sum at regular intervals.

There is no minimum or maximum tenure for SIP investments. The period of investing depends on your investment objective. When investing in equity mutual funds, it is recommended by experts to invest for at least 3 to 5 years. Since equity funds invest in stocks, they are volatile. Therefore, longer investment durations help you average out the volatility and generate significant returns.