SIP Calculator

A Systematic Investment Plan or SIP calculator online will calculate the wealth gain and expected returns for your monthly SIP investment in mutual funds. The tool helps you get a rough estimate of the maturity amount for any of your monthly SIP, based on a projected annual return rate. You can use our 5paisa SIP calculator to see how much your investment can grow if you invest today.

Yr
%
  • Invested Amount

    ₹10000

  • Wealth Gained

    ₹11589

  • Expected Amount

    ₹21589

Choose from our top performing funds to start investment

A systematic investment plan (SIP) is a preferred route of investment amongst Indian Mutual Fund investors, wherein an individual can periodically invest small amounts in a Mutual Fund Scheme instead of investing a lump-sum amount. This mode works well for long-term investments and helps in better management of risks.

A majority of investors prefer lumpsum investments. They involve fewer variables and yield high returns. There are many mutual fund calculator services available online that can help you estimate the return on your investments.  In SIP, the fixed amount of money can be as low as Rs. 500, while the pre-defined SIP intervals can be on a weekly/monthly/quarterly/semi-annually or annual basis. By taking the SIP route to investments, the investor invests in a time-bound manner without worrying about the market dynamics and stands to benefit in the long term due to the average cost and power of compounding.
 

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.
 

5paisa SIP calculator is a simple tool used to estimate the returns for SIP investment. This tool is user-friendly, as one only needs to input the following credentials - The amount an individual wishes to enter, the duration of the investment, and the expected return rate. Once, the values are added to the specified sections of the calculator, the SIP calculator will automatically calculate and estimate the 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.
 

SIP return can be calculated using various methods like absolute return, annualized returns, CAGR, and XIRR. The most efficient method to calculate SIP returns is CAGR.

CAGR or Compound Annual Growth Rate is the rate at which an investment grows each year for the entire period of the investment.

The Formula for CAGR is:
CAGR = (final value/ initial value) ^ (1/number of years or months) – 1*100
Where,
Final value is the NAV at the time of withdrawal,
The initial value is the NAV at the time of investment.
A number of months or years is the tenure of the investment.


Example
Suppose you have invested Rs.2,52,000 (Rs.3,000 a month) in a mutual fund when the NAV is Rs.20. At the time of withdrawal after seven years, the NAV is Rs.50. Using the CAGR formula, we can estimate SIP returns.

CAGR =(final value / initial value) ^ (1/number-of-years) – 1* 100
CAGR = (((50/20) ^ (1/7)) – 1) * 100
Compounded Annual Growth Rate = 13.98%
This means the investment has grown 13.98% each year for a period of 7 years.
The return will remain the same in terms of months as well.
CAGR = (((50/20) ^ (12/84)) – 1) * 100
CAGR = 13.98% ~ 14%
Hence the investment of Rs.2,52,000 will grow to Rs.4,29,076 in 7 years.
 

The investment amount approach in SIP investment is used to estimate potential SIP returns which will help the investors who know how much they like to invest monthly. Under this approach, one has to fill in the following details:

- Enter the monthly investment amount
- Enter the expected growth rate
- Enter the investment duration in years
- Finally, enter the step-up percentage. Step Up is a growth in the investment amount every year in line with the investor’s income growth. In other words, investors can increase their SIP investments every year by a step-up %. This helps to achieve financial goals faster and systematically. The step-up % should generally be equal to the rise in the individual’s annual pay.

The calculator will automatically estimate the potential gains at the end of the investment period. Also, one can view the calculation of SIP Maturity amounts either in a chart or table format. The investment graph provides a visualization of the maturity amount and the wealth gained during the investment tenure. In the table format, one can easily identify the Step-Up value every year.

The target amount approach helps the investor to estimate the monthly investment (SIP) amount he/she needs to invest to achieve their financial goal. However, for this, one should know the final amount they wish to have at the end of the investment tenure. Under this approach, one has to fill in the following details to determine the monthly investment amount:
- Enter the expected target amount
- Enter the expected growth rate
- Enter the investment duration in years
- Finally, enter the step-up percentage. Step Up is an increase in the investment amount every year in line with the investor’s income growth. In other words, investors can increase their SIP investments every year by a step-up %. This helps to achieve financial goals faster and systematically. The step-up % should generally be equal to the rise in the individual’s annual pay.
The calculator will automatically estimate the SIP target amount. Also, in the ‘Calculation of the SIP target amount’ table, one can find the details of their investments. Such as years, investment amount, interest earned, and maturity amount. Furthermore, in the table, one can easily identify the Step-Up value every year 
 

The different types of SIP are as follows:
1.    Top-up SIP
2.    Flexible SIP
3.    Perpetual SIP

1. Top-up SIP:

In a top-up SIP, you can change the amount of SIP installment by a fixed amount at specific time intervals.
For example, if you have been investing Rs.1000 in an equity mutual fund every month, you can increase your investment amount to Rs.1500 anytime you want through top-up SIP. This is one of the easiest ways to contribute a higher amount towards your investment goals as your income rise over the year.


 2. Flexible SIP:

Until now, we have seen how SIP means investing a fixed amount in a particular mutual fund in a systematic way for a particular period of time. But what if you may not be able to invest the same amount due to some reason? In such a case, you can consider investing through a Flexible SIP. Here you can alter your monthly investments as per your cash availability. In case of a financial emergency or crisis, you can reduce the amount of investment in SIP. And when you have excess cash at that point in time you can increase the SIP amount. This type of SIP is suitable for entrepreneurs who don't have a fixed income.

3. Perpetual SIP:

Investors usually prefer to invest in a mutual fund for a fixed time interval, it can be 6 months or 5 years according to their financial goal. But what if you don't have a specific goal and you don't want to set an end date for your SIP investment? In such a scenario, you can opt for a perpetual SIP option. You can continue investing in the mutual fund through SIP for as long as you want until you provide specific instructions to the AMC to cease it. 

If you want to invest in SIP but have no idea how to invest in it then here are 3 simple steps for you:

1. Keep the Necessary Documents Handy 
If you want to start a SIP, you simply need a handful of documents, such as a PAN card, Address Proof, a Cheque book, and a Passport size Photograph. As the address proof, you can provide you’re a copy of your Driving License, Utility Bill, or Bank Statement. Although your AADHAR Number is not necessary, it will simplify the process if you have it handy. You can process your SIP account online once you have these documents.

2. Get your KYC done
To invest in Mutual Funds via SIP, you must provide certain details, such as your Name, Date of Birth, Address, and Mobile Number in order to get your KYC done. This is just the one-time thing you need to do and you are eligible to invest in multiple funds. To get your KYC done, log onto the website of the fund house of your choice. There are various types of mutual funds provided by various fund houses, you can select any one of them based on your investment goals and your risk appetite. Then provide the required details, such as a soft copy of your PAN Card and Address Proof.

3. Start your SIP Online
Once your KYC is successfully done for SIP investment, you need to visit the website of the fund house you wish to invest in and look for the ‘Register’ or ‘New Investor’ link. Fill in the basic details when prompted and create your Username and Password for online transactions.

4. Choose the investment duration
Then you have to decide how long you want to stay invested in it. The period of duration can range from 6 months to as long as you want to stay invested.

5. Invest regularly
Select a particular date on which you wish to invest every month. Investing through SIPs is the most convenient way to invest in mutual funds for a longer period of time and generate wealth. That's why it is important to stay invested for the entire investment period.

FAQ’s

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.

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. 

Open Demat Account