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SIPs are a popular way to invest to manage finances through disciplined investing. When you start a SIP, a fixed amount is invested based on your choice of time intervals.
Systematic Investment Plan calculator is an online financial tool that helps you calculate the monthly savings you would need to make to reach your targeted corpus. The SIP calculators are also known as mutual fund SIP calculators and helps in computing complex financial calculations quickly. The SIP calculators give a value based on the estimated returns entered but this value may differ based on the market fluctuations. Further, the SIP calculator does not take into account the expense ratio.
The mutual fund SIP calculator usually requires three inputs to estimate the returns on your investment-
For instance, you are investing Rs.5000 per month for ten years or 120 months and the expected rate of return for this mutual fund is at 10% p.a. The calculator will display the corpus value of Rs.10,32,760 on a total principal of Rs.6,00,000. The SIP calculator works on the principal of compounding.
SIP calculators use the following formula to compute SIP returns. The SIP formula is-
FV= P X ({[1 + i] n – 1 / i) X (1 + i)
In the above formula,
FV = The future value or the maturity amount
P= amount invested at regular intervals
n= number of payments made
i= (rate of interest)/ 100
Mutual funds are subjective to market risks and these SIP calculators can help you determine the best mutual schemes that matches your risk appetite based on the risk-returns ratio
Determining an SIP amount within your budget will bring you a step closer to your goals. The SIP calculator comes in handy in determining a suitable SIP amount.
A longer holding period translates to better returns, however, involves a high degree of risk. The SIP calculator helps you understand the impact of various holding periods to make a suitable choice.
Calculating SIP returns can sometime be time-consuming and still have human errors. These efforts and the chances of errors are eliminated through the use of SIP calculator.
The SIP calculator gives a clear-cut breakdown of your total contribution and the returns you will reap.
Using the ICICI Direct SIP calculator is very simple. Follow the below-mentioned steps to use the SIP calculator:
The calculator reflects the total maturity value in addition to your principal investment and returns. This will give you a fair idea of the value the investment offers.
Now in case you wish to make changes to your investment variables, be it to the monthly contribution or tenure, you can easily do so using the sliders. Even the slightest change made to the investment variables will reflect immediately in the total maturity figure and its graphical representation.
Let’s assume an investor, Akash who is a young professional in the field of finance. Given Mutual Funds have tremendous potential to earn inflation-beating returns he decides to invest in them. Since he is a salaried individual, he opts for regular SIP to build his corpus.
He decides to invest Rs 5,000 every month for a tenure of 10 years at an expected rate of 8%. The SIP calculator reflects he will receive Rs 9,22,917 on the investment’s maturity.
However, his goal is to at least accumulate Rs 15 lakhs within 10 years at the same expected rate. He now uses the calculator to consider different variations of variables. Ultimately the SIP calculator helps him know that he has to contribute Rs 8,127 every month for 10 years. The Mutual Fund will grow at an expected rate of 8% and approximately earn him Rs 15,00,109 on maturity.
The example clearly depicts how the SIP calculator simplifies Mutual Fund investment calculation and aids in better financial planning.
1. Facilitates obtaining a close estimate of the amount accumulated after completing periodic payments for the desired tenure
2. It has a user-friendly interface and is easily accessible and saves your time at the time of performing complex calculations.
3. The online SIP calculator gives you estimates using three different growth scenarios like above-average, average, and below-average returns. You can pick a strategy that best fits your needs and begin investing
4. Using the free online SIP calculator, you can examine numerous return scenarios and make an appropriate investing decision.
An EMI calculator helps the borrowers know the monthly amount they are obliged to pay to their financial institution against the availed loan.
To start a SIP online:
Yes, you can modify your SIP amount. You can either start a new SIP for the additional amount or create a new SIP with an amount higher than the previous one if you wish to increase the SIP amount. Conversely, suppose you want to decrease your SIP amount. In that case, you can either start a new SIP with a lower amount or contact your AMC (asset management company) about the same.
You can pause your SIP for sure without any extra charges. You can withdraw your investment by redeeming the available units. However, some schemes have a lock-in period. You may also charge an exit load on withdrawal based on the exit load policy of the mutual fund scheme.
There are four types of SIPs available in the market-
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