What is SIP Calculator?
SIP Calculator is a valuable tool that helps investors estimate the future value of their mutual fund investments made through a Systematic Investment Plan (SIP). By inputting the monthly SIP amount, investment duration, and expected rate of return, the calculator can determine the projected corpus amount at maturity. This tool empowers investors to make informed financial decisions by providing a clear understanding of the potential growth of their SIP investments.
How does the SIP Calculator Work?
A SIP Calculator follows the below formula:
SIP Calculation Formula
FV = P [ (1+i)^n-1 ] * (1+i)/i
- FV = Future value or the amount you get at maturity.
- P = Amount you invest through SIP
- i = Compounded rate of return
- n = Investment duration in months
Example of a SIP Calculator
Jane is 30 years old and works as an investor. She is thinking about how she can invest money for retirement purposes. So, Jane decides to put money into a mutual fund product via a Systematic Investment Plan.
- Investment amount: ₹35,000 per month
- Investment period: 30 years
- Expected interest rate: 8% per annum
- Frequency of investments: Monthly
Result:
With the above Formula the SIP Calculator would give following results:
- Future Value of the investment: ₹5,25, 10,331
- Total Investment: ₹1,26,00,000 (35,000 * 12 * 30)
- Potential Returns: ₹3,99,10,331 (Future Value - Total Investment)
Yearly Breakdown
The below table shows how power of compounding can increase your returns every year with same investment amount.
Year | Yearly Investment Amount | Total Investment | Expected Rate of Return | Total Returns |
| 2024 | Rs.60000 | Rs.60000 | 12% | Rs.4047 |
| 2025 | Rs.60000 | Rs.120000 | 12% | Rs.16,216 |
| 2026 | Rs.60000 | Rs.180000 | 12% | Rs.37,538 |
| 2027 | Rs.60000 | Rs.240000 | 12% | Rs.69,174 |
| 2028 | Rs.60000 | Rs.300000 | 12% | Rs.1,12,432 |
| 2029 | Rs.60000 | Rs.360000 | 12% | Rs.1,68,785 |
| 2030 | Rs.60000 | Rs.420000 | 12% | Rs.2,39,895 |
| 2031 | Rs.60000 | Rs.480000 | 12% | Rs.3,27,633 |
| 2032 | Rs.60000 | Rs.540000 | 12% | Rs.4,34,108 |
| 2033 | Rs.60000 | Rs.600000 | 12% | 5,61,695 |
How to Calculate SIP Returns in Excel?
Follow the below steps to calculate SIP returns in Excel:
- Enter SIP Dates: In column A, list the dates of SIP investments.
- Enter SIP Amounts: In column B, list the SIP amounts.
- Enter NAVs: In column C, list the Net Asset Values (NAV) on each SIP date.
- Calculate Units: In column D, divide SIP amount by NAV (=B2/C2).
- Calculate Total Value: Multiply total units by the latest NAV.
- Calculate Returns: Use = ((Total Value - Total Investment) / Total Investment) * 100 for percentage return.
How to use ClearTax SIP Calculator?
You can easily use ClearTax SIP Calculator by following below steps:
- Enter the Monthly SIP amount
- Now Fill out other details, Investment duration and expected rate of return
- Calculator will show you the estimated corpus with a beak-up of earned interest and invested amount.
Advantages of Using a SIP Calculator
SIP calculator India has its advantages that it offers to the investors:
- Accurate Planning: SIP calculators forecast the future growth of an investment well based on specific input criteria. It includes the amount to be funded, the duration, and the expected return. SIP calculators apply mathematical algorithms. It develops definite approximations so traders can manage their finances.
- Comparison of Several Scenarios: Changing the components of your inputs in SIP calculators, like amount, duration, and anticipated rate, means that they help users evaluate various investment conditions. They assist them in making informed choices. It is based on their economic objectives. Thus coming up with alternative investment strategies that may result in desirable outcomes.
- Visualisation of Potential Returns: Through systematic investing, SIP calculators help buyers see how their money can grow. Regarding their investing plans, graphs and charts are also available to help them understand the power of compounding. It enables them to make informed choices.
- Goal Setting and Progress Monitoring: SIP calculators aid traders in setting attainable financial targets and monitoring their progression towards them. By entering their specific financial goals, such as retirement savings or funding their child's education, investors can estimate the required investment amount. From there they can see how they progress over time.
| Bank SIP Calculators | |
|---|---|
| SBI SIP Calculator | PNB SIP Calculator |
| HDFC SIP Calculator | BOI SIP Calculator |
| Canara Bank SIP Calculator | DHFL SIP Calculator |
| Axis Bank SIP Calculator | HSBC SIP Calculator |
| Kotak Bank SIP Calculator | Union Bank SIP Calculator |
| Other Calculators | ||
| PPF Calculator | RD Calculator | FD Calculator |
| NPS Calculator | SWP Calculators | SCSS Calculator |
| CAGR Calculator | ROI Calculator | EMI Calculator |
| Lumpsum Calculator | Future Value Calculator | Mutual Fund Calculator |
| Kisan Vikas Patr Calculator | Retirement Planning Calculator | Compound Interest Calculator |
Frequently Asked Questions
How does ClearTax SIP Calculator help you choose SIPs?
ClearTax SIP Calculator helps in determining the final corpus at maturity on the basis of SIP Amount, investment tenure and expected rate of return. You can change the inputs to check your desired final amount. After Calculation, you can choose the Mutual Fund scheme that has track record of good return and has a potential to deliver your desired amount at maturity.
Are SIP is equal to mutual funds?
No, SIP is just a medium for investing your money in a particular fund or scheme. It is just an investment vehicle that helps you park your money.
Why should I use the ClearTax SIP Calculator?
The ClearTax SIP Return Calculator will show you the value of your SIP instalments at the end of the investment tenure. You may use the ClearTax SIP Calculator to get a birds-eye view of your mutual fund investments. It helps you to decide on your SIP instalments to achieve your financial goals in time.
Does the SIP calculator include taxes and fees?
No, it just shows the matured amount investor can get on the basis SIP amount, Expected Return and Tenure. It doesn't give any information related taxes and Fees.
What is SIP?
A systematic investment plan (SIP) is a mutual fund investment tool that allows investors to invest at regular intervals. Investors can select their preferred investment frequency - weekly, monthly, quarterly, half-yearly, or yearly. SIP offers a disciplined way of investment and benefits investors in the long run with the power of compounding growth. It gives the benefit of Rupee Cost Averaging by providing the chance to buy more NAV (Net Asset Value) with the same investment amount in a bear market. Additionally, investors can choose to stop SIP whenever at anytime.
How to calculate SIP returns in Mutual Funds?
To calculate SIP returns in mutual funds, divide each SIP amount by the respective NAV to get the units, sum all units purchased, and add all SIP amounts for total investment. Multiply total units by the current NAV for current value. Calculate returns using ((Current Value - Total Investment) / Total Investment) * 100
How to calculate CAGR for SIP?
To calculate CAGR for SIP, find the final value of the investment, initial value, and the number of years. Use the formula: [(Final investment value / Initial investment value)^(1/n)] – 1
In the above formula, ‘n’ refers to the investment tenure in terms of years. This gives the annual growth rate of your SIP investments.
How to calculate xirr for SIP?
XIRR is determined by finding the rate of return that sets the net present value (NPV) of cash flows to zero. The formula to calculate XIRR is as follows:
NPV Formula: NPV = Σ[Ct / (1 + r)^(t)] = 0
Variables:
- Ct: Cash flow at time t
- r: XIRR rate (the rate we're trying to find)
- t: Time period
How to calculate profit percentage in SIP?
To calculate profit percentage in SIP, subtract the total amount invested from the current value of the investment. Then, divide the profit by the total amount invested and multiply by 100. Use the formula:
Profit Percentage=(Current Value−Total InvestmentTotal Investment)×100
What if i invest Rs.2000 in SIP for 40 years.
If you invest Rs 5000 for 20 years, with an expected annual rate of return of 12 %, then your matured amount would be approx Rs. 2,37,64000 (Earned Interest = Rs. 2,28,04,840 and Invested Amount = Rs. 9,60,000)
What is the minimum and maximum amount that can be invested through SIP?
Investment through SIP can be started with a minimum amount Rs. 500 per month. There is no limit on maximum amount.
Whayt is the minimum Tenure for SIP?
SIP tenure depends on Mutual Fund scheme. However, most of mutual fund schemes have minimum tenure of 6 months.
Can i pause my SIP Investment?
Yes, you can pause SIP investment whenever you want.
