Investment Calculator

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Monthly Investment amount

₹

Annual Step up Amount

₹

Investment Period (In years)

Yrs

Expected Rate of Return (In %)

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On an average, NIFTY delivers around 11-15% returns while All Rounder has been consistently outperforming NIFTY for the past 10 years. Know More

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Year Yearly Investment Investment Amount Growth from SIP Maturity Amount

What will happen if I keep investing?

+5 yrs
+7 yrs
+10 yrs

Investment Amt.

Growth from SIP

Maturity Amt.

Investment Amt.

Growth from SIP

Maturity Amt.

Investment Amt.

Growth from SIP

Maturity Amt.

A SIP calculator is an online tool designed to estimate the future value of SIP investments. By inputting variables such as the monthly investment amount, expected annual returns, and investment duration, users can get an idea of how much their investments will grow over time. This helps in making informed decisions about how much to invest and for how long, based on financial goals.

Using an SIP calculator is straightforward and user-friendly.
Here’s a step-by-step guide:

Enter the Monthly Investment Amount

Specify the amount you plan to invest every month.

Input the Expected Annual Return Rate

This is the percentage of returns you expect from your investment annually.

Specify the Investment Duration

Indicate the number of years you plan to continue the SIP.

Click on ‘Calculate’

The calculator will process the inputs and provide the estimated future value of your investments.

For example, if you invest ₹500 per month with an expected annual return of 12% for 10 years, the SIP calculator will show you the total corpus you will accumulate at the end of this period.

To use the SIP calculator effectively, it's essential to understand the input parameters:

Monthly Investment Amount

This is the fixed amount you invest every month. Regular contributions help in averaging out the purchase cost over time.

Expected Annual Returns

This is the anticipated rate of return on your investment. It is usually based on historical performance but can vary based on market conditions.

Investment Duration

The period over which you plan to invest regularly. Longer durations generally lead to higher returns due to the power of compounding.

Frequency of Investment

While most SIPs are monthly, some plans offer quarterly or annual investments.

The SIP calculator provides several key results:

Maturity Amount

This is the total amount you will have at the end of the investment period. It includes both the invested amount and the returns earned.

Invested Amount

The sum of all your monthly investments over the specified duration.

Wealth Gained

The difference between the maturity amount and the invested amount, representing the returns on your investment.

For example, if you invest ₹500 per month for 10 years with a 12% return, your maturity amount might be around ₹1,11,500, with an invested amount of ₹60,000 and wealth gained of ₹51,500.

Using an SIP calculator offers several advantages:

Accuracy in Planning

It provides precise estimates based on your inputs, helping you plan your finances better.

Time-saving

Quickly calculate the future value of your investments without complex manual calculations.

Visual Representation

Many calculators offer graphs and charts, making it easier to understand how your investments will grow over time.

To illustrate the use of an SIP calculator, let’s consider three different investor scenarios:

Conservative Investor

Invests 200 per month with an expected return of 8% for 15 years. This approach suits those who prefer lower risk and steady growth.

Moderate Investor

Invests ₹500 per month with an expected return of 10% for 20 years. A balanced approach for those who seek moderate risk and returns.

Aggressive Investor

Invests ₹1,000 per month with an expected return of 15% for 25 years. Suitable for those willing to take higher risks for potentially higher returns.

Each scenario demonstrates how different investment amounts, durations, and expected returns can impact the maturity amount.

Several factors influence the returns on SIP investments:

Market Conditions

Economic and market trends affect mutual fund performance. A diversified portfolio can help mitigate risks.

Duration of Investment

Longer investment periods generally yield better returns due to compounding.

Consistency in Investment

Regular investments enhance the benefits of compounding, leading to substantial growth over time.

Diversification

Investing in a mix of funds can spread risk and improve overall returns.

Missing an SIP installment typically doesn't incur penalties, but it's important to try to be consistent. Missing payments can affect your overall returns, and some mutual fund houses may even discontinue the SIP after a few missed payments. Always check the specific terms of your SIP.

Yes, many SIP plans offer the flexibility to increase your monthly investment amount. This is known as a top-up or step-up SIP. Increasing your SIP amount periodically can significantly boost your overall returns.

There is no one-size-fits-all answer, as the best duration depends on individual financial goals. However, longer durations generally maximize the benefits of compounding, leading to higher returns. A typical SIP is planned for a minimum of 5 to 10 years to see substantial growth.

SIPs invest in mutual funds, which are subject to market risks. However, the systematic nature of SIPs helps in mitigating risks over the long term through rupee cost averaging and the power of compounding. Diversifying your investments can also reduce risk.

Taxation on SIP returns depends on the type of mutual fund. Equity funds held for more than one year are subject to long-term capital gains tax, which is lower compared to short-term capital gains tax. Debt funds have different tax rules. Always consult with a tax advisor for specific advice.

Yes, you can withdraw from your SIP before the maturity period. However, it may be subject to exit load charges if withdrawn within a certain period. It's advisable to check the terms of your SIP before making any withdrawals.

SIP involves investing a fixed amount regularly, whereas a lump sum investment is a one-time investment. SIP helps in averaging the purchase cost over time and is suitable for those who prefer disciplined investing. Lump sum investments can be beneficial in a bullish market but involve timing the market.