SIP Calculator

Investing can feel confusing at first, but SIPs make it super simple. A Systematic Investment Plan (SIP) is a simple, disciplined, hassle-free way to invest in India’s growing financial market, one small step at a time. Let’s say you pick a mutual fund scheme and invest a fixed amount of ₹1000 at regular intervals – monthly, quarterly, or even weekly.

As you keep investing a fixed amount regularly, you buy more units when the market is down and fewer units when it’s up. This balances out the overall cost of your investment over time. And thanks to the magic of compounding, your investments grow not just on the initial amount but also on the returns earned. And if you’re wondering how much your money can grow, that’s where a Mutual Fund SIP calculator comes in:

A SIP calculator is a valuable tool for estimating the potential returns on mutual fund investments made through a SIP. Online SIP calculators help you estimate the future value of your investments based on:

• The amount you invest regularly.
• The duration of your investment.
• The expected rate of return.

The sip calculator will give you a solid idea of what to expect from your investments, helping you plan better. It’s important to remember that actual returns may vary depending on the specific mutual fund scheme you choose.

The SIP Calculator uses a formula to estimate your investment’s future value: 

FV = P × ({[1 + r]^n – 1} / r) × (1 + r) 

SIP Return Formula

Where:

• FV = Future Value of the investment.
• P = Amount invested at regular intervals.
• r = Periodic interest rate (annual rate divided by the number of periods per year).
• n = Total number of instalments (total number of times you invest).

For example, let’s say you invest ₹5,000 every month (P = ₹5,000) for 3 years (n = 36 instalments, assuming monthly investment) and expect a return of 11% annually. This is what the calculation will look like:

Step 1: Calculate the interest rate per period (i)

r = (1.11)^(1/12) – 1

r = 0.8735%

Step 2: Calculate the number of instalments (n)

n = Investment tenure (in years) * Number of investments per year 

n = 3 years * 12 months 

n = 36 installments

Step 3: Apply the SIP formula

FV = 5000 * (((1 + 0.008735)^36) – 1) / 0.008735 * (1 + 0.008735)

FV ≈ ₹212285.20

Based on this estimation, with a monthly SIP of ₹5,000 for 3 years at an expected return of 11% per year, you could potentially accumulate approximately ₹212285.20 at maturity.

With the Share.Market online SIP calculator, you just have to plug the values into the formula and the calculator will compute the future value of your investments. Here’s how you can use the SIP calculator by Share.Market:

• Enter the monthly investment amount.
• Select your investment timeframe (in years).
• Pick your expected rate of return (annual percentage growth).

Once you enter this information, the calculator will display: 

• Total amount invested.
• Estimated returns earned.
• Total maturity amount.

This way, you can get a sense of how much your investments might grow over time.

Use the SIP calculator to determine the monthly SIP amount you need to achieve your financial goals within a specific timeframe. Easily see the total amount you’ve invested over time and get an estimated value of your potential future returns.

Experiment with different investment scenarios using the calculator. This can help you make informed choices about your SIP investment strategy.