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Online SIP Calculator
SIP Returns: Plan your investments
Calculate Your SIP amount with ease
Online SIP Calculator
SIP Returns: Plan your investments
SIP calculator helps you evaluate your investments basis the financial goals you have planned for. Find out the amount that you need to invest per month to reach your goals through Goal Based Calculator. It will help you evaluate your preparation for your goals like Child’s Education, Child’s Marriage, House, Retirement etc. The Amount Based Calculator helps you know the amount that you will be able to accumulate if you invest through SIP.
SIP Return Calculator
Unlock Your Financial Goals with SIP: Smartly Invest in Mutual Funds or Equities! Introducing SIP - Systematic Investment Plan, your path to financial stability. Seamlessly contribute a fixed amount monthly. Embrace flexibility - amplify or pause investments as your wallet permits. Amidst fluctuating markets and inflation, predict returns with our dynamic SIP calculator. Your future, your way!
The following sections will discuss an online SIP calculator, its uses, and how it can calculate returns you will accrue over time.
Steps to use Axis Direct's SIP Calculator
Axis Direct provides three types of SIP return calculators: goal-based, lumpsum-based, and amount-based.
Goal-Based Calculator: A goal-based calculator allows you to evaluate how much you must invest each month to achieve your goals within a specific period. These are the steps to use:
- Choose your goal amount
- Select your investment period in years
- Select the rate of returns
- The instant results will show the monthly investment required, the target to achieve, and the duration.
- Click on 'Start a SIP now.'
Amount-Based Calculator: An amount-based calculator reveals the amount you will accumulate through the SIP investment over a certain period of time. These are the steps to use:
- Choose the monthly SIP amount
- Select the rate of returns
- Choose the investment period in years
- The results will show your monthly savings, expected growth, and duration
- Click on 'Start a SIP now.'
The SIP lumpsum online calculator is also available at Axis Direct. However, that is meant for lumpsum investments rather than SIPs.
How to use?
Using a monthly SIP calculator is pretty quick and straightforward. You just need to choose the investment amount, rate of returns and tenure to get the results instantly.
For instance, if your goal is to save Rs 10 Lakh in five years, you must use a goal-based calculator, choose your investment goal and period, and select your SIP interest rate. If the return rate is 11%, you must invest at least Rs 12,575.76 monthly to build a corpus of Rs 10 Lakh in five years.
On the other hand, if you want to invest Rs 5,000 each month for 10 years, use an amount-based calculator to select your monthly investment amount, rate of return, and investment period. If you invest Rs 5,000 each month for 10 years, you will save Rs 10,84,990.69 at an interest rate of 11%.
What is SIP & its Types?
SIP, or Systematic Investment Plan, is one of India's most popular investment methods. It is a favourite investment method for micro or retail investors who want to invest in small amounts each month instead of making lumpsum investments. As an investor, you can choose to make a SIP contribution each week, month, or quarter. You can also activate auto-debit of the SIP amount from your bank account each month towards the investment. With each SIP contribution, you buy some units from the market at the current rate and add them to your portfolio. Before starting a SIP, you must know the types of SIPs available. These include regular SIPs, flexible SIPs, top-up SIPs, trigger SIPs, and perpetual SIPs. Choose one that best suits your investment goals and affordability.
How does this SIP Calculator Work?
The SIP calculator estimates your SIP investment returns based on your investment amount, expected return rate, and investment tenure. When you select the amount, tenure, and return rate in the Axis Direct SIP calculator, the tool estimates the projected returns using the input data while considering the investment’s compounding effect over time. However, the actual returns you receive may vary depending on the market conditions, inflation, and fund performance.
How is the SIP return calculated?
The SIP calculator is a handy tool that estimates your potential SIP investment returns over time. But you must be wondering how it works to calculate the returns. This is how it makes the estimates and lets you make informed investment decisions:
- You enter the amount you can invest in the SIP each month, the expected return rate, and the investment period.
- The calculator uses compound interest estimates to compute your investment’s future value. It adds the earned SIP interest rate to your invested amount, makes it a part of your investment amount, and repeats the monthly process to calculate growth over time.
- The tool displays the estimated investment value and growth over time.
The calculator helps determine how much to invest each month to achieve your financial goals. You can understand the workings of a mutual fund SIP calculator with this formula:
M = P × ({[1 + i]^n – 1} / i) × (1 + i)
In this formula,
- M = Maturity amount
- P = Investment amount at regular intervals
- n = Number of payments to be made
- i = Periodic interest rate
For instance, if you want to invest Rs 1,000 each month for one year at the periodic SIP interest rate of 12%, your monthly return rate will be 12% divided by 12 = 1/100=0.01
Hence, M = 1,000X ({[1 +0.01 ]^{12} – 1} / 0.01) x (1 + 0.01)
As a result, your maturity amount will be Rs 12,809 in a year. However, the SIP interest rate may change according to market fluctuations, and the estimated returns may vary.
How to Interpret the Data Calculated?
The SIP investment calculator shows various data based on your investment goals. You can interpret and use this data to make your investment decisions. For instance, if you use a goal-based calculator, you can understand how much you must invest each month to accumulate a certain amount and how much time it will take. According to your affordability and income, you can increase or decrease your SIP amount to achieve that goal sooner or later. On the contrary, if you use an amount-based calculator, you can understand how much you will accumulate if you invest a certain amount each month for a specific number of years.
Therefore, interpreting the data calculated by the SIP calculator helps you make informed decisions to achieve your investment goals.
Advantages of Calculating Your SIP Returns
The SIP goal calculator helps you determine how much you must invest each month to accumulate a particular sum. On the other hand, an amount-based calculator enables you to determine the corpus you would create by investing a certain amount each month. Both types of calculators help you achieve your investment goals and build wealth over time. Calculating your SIP returns is advantageous in many ways, including the following:
Transparency
Calculating your SIP returns clarifies the expected investment returns, helping you make informed financial decisions.
Easy Investment Planning
The SIP investment calculator helps you plan your investments better by determining the amount for regular investments to achieve your goals.
Cost-Effective
SIP is a cost-effective investment method that allows you to contribute small amounts at regular intervals as per your affordability rather than making a large lump sum payment.
Flexibility
You can change the inputs based on your investment goals, like the investment amount, return rate, investment period, and frequency of SIPs, to generate the desired returns.
Long-term Perspective
With regular SIP investments, you can build your investment portfolio to ensure financial security for your retirement.
Plan Investment Budget
With SIP data at your fingertips, you can plan your investment budget according to your investment capability and goals.
Progress Monitoring
By regularly calculating your SIPs returns, you can track your progress and adjust according to your investment goals.
Evaluation of Various Options
Once you receive the SIP returns results, you can evaluate the various investment options and compare returns to make informed decisions. Moreover, you can compare returns from different scenarios and change factors like the investment frequency, amount, and period.
Have any questions?
Systematic Investment Plan (SIP) is a fixed amount one invests at regular intervals in a financial instrument. The SIP calculator helps you find the future value of your invested money by taking into account SIP for a specified duration at the expected interest rate The SIP calculator helps you ascertain the future value of your investments. It considers an SIP for a specified duration at the expected interest rate. With the help of an SIP Calculator, you can accurately plan your investments to meet your investment goals. An easy to use SIP Calculator will help you select your desired investment scheme and calculate your SIP amount with a single click.
This calculator is used to plan your investments in equity/debt/hybrid mutual funds for a short term to long term period. This calculator helps you to plan your investments based on your financial goals.
A Systematic Investment Plan or SIP is a smart and hassle free mode for investing money in mutual funds. SIP allows you to invest a certain pre-determined amount at a regular interval (weekly, monthly, quarterly, etc.).
This calculator helps you calculate the wealth gain and expected returns for your monthly SIP investment. You get a rough estimate on the maturity amount for any monthly SIP, based on a projected annual return rate.
You don't need to speculate or focus on timing the market (which isn't the right way for generating returns over long term)
Amount is invested on monthly basis, so there is little to no impact of market volatility (unit cost averaging)
Passive and automated (monthly installments can be deducted automatically) approach makes you more committed to guranteed saving/investment
It's very flexible - you can create/update/cancel SIP anytime. Most of the funds starts as low as Rs. 1000 per month
SIP Return Calculator : How it is Different from Regular Calculator
An SIP return calculator's mere mention brings in the image of a machine that has a few numbered tabs on it and also a few symbols. Without seeing a mutual fund investment planner one would think it to be a machine that works only on numbers and performs calculations like addition, subtraction, division, etc. But, in actuality a SIP calculator is an entirely different tool. It is used to compute the investment strategy for the clients in an easy and quick way. An SIP planner demands three primary inputs, and that too are entered using the very easy graphical user interface. Thus, the customers need not worry about the fields and only have to select the numbers through their mouse. The values will automatically appear in the respective boxes and also the result. Thus, it is very easy for the users to use a mutual fund calculator as compared to any other calculator.
How SIP Calculator is Helpful for Offline Users also SIP calculator is truly helpful for the online investors which gives independent investing a true sense. The users have to be very cautious about the calculation while investing, as a slight mistake in calculating the amount will lead to an accrued loss over the period of time. However, SIP returns calculator is not only a useful tool for the online investors but at the same time it is beneficial for the offline clients as well. Customers can use an SIP investment planner present on our site and make the best possible use of their money and plan their investment wisely. Thus, whether you are an online or offline investor you can surely make the most out of your money if you wisely use mutual fund calculator. Therefore, be a smart investor and utilize the power of your money by letting the calculations work in your favor.
SIP is a feature of mutual fund, which allows investors to invest money in small amounts in regular intervals. SIP returns for various mutual funds may vary. On an average, for large cap equities, a return of 12-18% can be expected whereas from mid-cap equities, a return of 14-17% is expected.
Only investments in Equity Linked Savings Schemes (ELSSs) or tax saving mutual fund schemes qualify for a tax deduction under Section 80C of the Income Tax Act. Unfortunately, none of your Systematic Investment Plans (SIPs) are in ELSSs.Your SIP return is taxable or not, it totally depends on the type of mutual fund and scheme you select and when you redeem your investment. Generally, returns from the equity mutual funds are non-taxable when redeemed after one year of the investment. If one redeems before one year, then in that case one needs to pay 15% on the profit itself.
- Goal-Based Calculator: The SIP goal calculator helps you calculate the SIP amount you must invest each month to accumulate a certain amount over the investment period. Once you enter your goal amount, investment period, and SIP interest rate, the tool will display the monthly SIP amount required.
- Amount-Based Calculator: This type of calculator is more suitable if you can invest only a certain amount each month. Based on your monthly investment, interest rate, and investment period, the calculator displays the total amount you will accumulate over your investment duration.
SIP calculator lumpsum is a third type of calculator you can use to make a one-time lump sum investment. Enter the one-time investment amount, interest rate, and duration to find the details of the expected growth by maturity.
While using a mutual fund SIP calculator, you must see historical returns that the scheme has generated in the past. Look at their previous earnings, income generation, and compounding effect to ensure your investment grows into a sizeable amount. Therefore, although a calculator does not consider historical returns, the information you enter is based on its historical returns.
Apart from tax planning, SIPs achieve financial goals with high investment returns. Moreover, they are highly flexible, liquid, transparent, and affordable and deliver higher returns than other investment options.
- Neglecting Inflation: Overlooking the impact of inflation can lead to underestimated future values.
- Inaccurate Inputs: Inputting incorrect figures like investment amount, tenure, or returns can distort your projections.
- Ignoring Fees & Charges: Neglecting to account for fees can skew your estimated returns significantly.
- Blindly Following Projections: SIP calculator outputs are estimates, not guarantees.
- Overlooking Tax Implications: Taxes can eat into your gains - factor them in for accurate results.
