SIP Calculator

Home arrow Tools & Calculators arrow

How much will you be saving each month?

  • 1000
  • 2000
  • 5000
  • 10000

Do you have a lump sum amount?

  • 10000
  • 20000
  • 50000
  • 100000

Time (years)

  • 1
  • 2
  • 5
  • 10
loading

Enter details first & calculate

Other Tools & Calculators Moreright-arrow

Related Stories

FAQs on the SIP calculator

An SIP calculator tool can help you by providing an estimate of the future value of your investments made through regular SIPs or lumpsum (if any) in mutual funds. By inputting details such as the monthly investment amount, duration (in years), and any lumpsum amount that you may have, the calculator can show you how much your investments could grow over time. The result appears in a graphical form that is very easy for users to understand.
The system assumes a default rate of return, which can be changed as desired by the user. This helps in financial planning by giving you a clear picture of an investment's potential worth, allowing you to set realistic investment goals and make informed decisions about your savings strategy.

Yes, the SIP calculator tool is free to use for all.

Using an SIP calculator tool offers several advantages:

  1. Precise estimates: It provides precise estimates of the future value of your investments, helping you understand potential growth based on different scenarios (like different monthly investments, duration and assumed rate of return).
  2. Financial planning: The SIP calculator tool aids in effective financial planning by allowing you to set realistic investment goals and track your progress.
  3. Time-saving: It quickly calculates the projections, saving you time and effort compared to manual calculations.
  4. Flexible: By moving the assumed returns slider, you can check the possible worth of your investment at different rates.
  5. User-friendly: Typically easy to use, making it accessible for both novice and experienced investors.
  6. Cost-effective: It is free to use, providing valuable financial insights without any additional cost.

Overall, an SIP calculator tool is an essential resource for making informed investment decisions and achieving your financial goals.

The SIP calculator calculates the future worth of your investment. Here's how it works:

  1. Input parameters: You enter details such as the monthly investment amount (SIP amount), lumpsum amount that you may have ready to invest and the investment duration (in years).
  2. Monthly compounding: The calculator assumes that your investments grow at a compounded rate on a monthly basis. This means that the returns earned each month are added to the principal amount for the next month's calculation.
  3. Maturity amount formula: The formula used to calculate the worth of investment at the end of the period through SIPs is:

A=P×(1+r)n-1r×(1+r)

Where:

A is the future value of the investment.
P is the monthly investment amount.
r is the monthly rate of return (annual rate divided by 12).
n is the total number of investments (months).

In addition, it also combines the worth of the money invested as a lump sum (if any) at the same rate.

By automating these calculations, the SIP calculator provides a quick and precise estimate of the future value of your investments, helping you plan and manage your finances effectively.