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SIP Calculator

  • SIP
  • Lumpsum
₹500 ₹5L
%
1% 30%
Yr
1 Year 40 Year
  • Invested Amount
    6000
  • Estimated Returns
    405
  • Total Value
    6405
₹500 ₹25L
%
1% 30%
Yr
1 Year 40 Year
  • Invested Amount
    500
  • Estimated Returns
    60
  • Total Value
    560

New investors may find investing scary. Starting is challenging with so many alternatives. But don't worry, we've got you covered! This beginner's guide covers the SIP calculator, a popular investing tool. SIP is Systematic Investment Plan. It's a way to invest a set amount in mutual funds monthly. The SIP calculator calculates investment returns based on investment amount, period, and predicted rate of return. But why should you care about SIP calculators? They're an excellent way to start investing. They're simple and provide a clear picture of your investment. Whether you're an experienced investor or a beginner, the SIP calculator is a useful tool. If you're ready to start in finance, read on!

What is a SIP Calculator?

A SIP Calculator is an online tool. It helps you calculate the wealth gain and expected returns for your monthly SIP investment. SIP stands for Systematic Investment Plan. Mutual funds provide this investing option. Using SIP, you can invest small amounts periodically (weekly, monthly, quarterly) into your desired mutual fund. SIPs are a convenient and disciplined way of investing in mutual funds and creating wealth in the long term.

To use a SIP Calculator, you need to enter some simple inputs, such as the monthly investment amount, the expected rate of return, the investment tenure, and the step-up rate. The calculator will then show you the total amount invested, the estimated returns, and the future worth of your investment at the end of the term. You can use a SIP Calculator to plan your financial goals and compare different mutual fund schemes.

What are the Types of SIPs Available?

SIPs are a popular way of investing in mutual funds. It includes regular payments at fixed intervals. Depending on their features and flexibility, different types of SIPs are available in the market. Some of the common types of SIPs are:

  • Regular SIP: This is the simplest type of SIP. Here you invest a fixed amount every month, quarter, or year in a mutual fund scheme of your choice. You cannot change the amount or frequency of your investment once you start a regular SIP.
  • Top-up SIP: This type of SIP allows you to increase your investment amount periodically, usually every year or half-year. This helps you to invest more when your income increases and benefits from the power of compounding.
  • Flexible SIP: This type of SIP allows you to change your investment amount as per your convenience and cash flow. You can invest more when you have surplus funds and less when you have a cash crunch.
  • Perpetual SIP: This type of SIP has no fixed end date. You can continue investing in it until you stop or redeem your units. This helps you to stay invested for the long term and avoid timing the market.
  • Trigger SIP: This type of SIP allows you to set a trigger for your investment based on specific events or conditions. For example, you can set a trigger to invest more when the market falls by a certain percentage or when your bank balance reaches a certain level.
  • SIP with Insurance: This type of SIP offers the additional benefit of life insurance cover and your mutual fund investment. The insurance cover is usually a multiple of your monthly SIP amount and is provided by the mutual fund house or a third-party insurer.
  • Multi SIP: This type of SIP allows you to invest in multiple mutual fund schemes with different risk profiles and objectives through a single mandate. You can diversify your portfolio and optimize your returns by choosing different types of funds such as equity, debt, hybrid, etc.

These are some of the types of SIPs available in the market. You can choose the one that suits your financial goals, risk appetite, and investment horizon.

How SIP Calculators Help You to Calculate Different Types of SIP Returns?

SIP calculators use the compound interest formula. It considers various factors such as the investment amount, the frequency, the tenure, the expected rate of return, and the inflation rate. Depending on your investment objective and preference, you can use different Systematic Investment Plan Calculators to estimate your future value and earnings from your SIP investments. The SIP Calculator Formula is

M = P [(1 + i)^n – 1] x (1+i)/ i

Some real-life examples of how these calculators helps you:

1. SIP Return Calculator

Suppose you want to invest Rs. 10,000 per month for 10 years in a mutual fund scheme that offers an expected annual return of 15%. You can use a SIP return calculator to find out how much your investment will be worth at the end of 10 years. The formula for calculating the future value of SIP is:

M = P [(1 + i)^n – 1] x (1+i)/ i

Where M is the maturity amount
P is the monthly investment amount
i is the periodic interest rate (15%/12 = 0.0125)
n is the number of payments (10 x 12 = 120).

Using this formula, we get:

M = 10,000 [(1 + 0.0125)^120 - 1] x (1 + 0.0125) / 0.0125
M = Rs. 27,86,573

This means your investment of Rs. 12 lakhs will grow to Rs. 27.86 lakhs in 10 years at a 15% annual return.

2. SIP Top-up Calculator

Suppose you want to invest Rs. 5,000 per month for 15 years in a mutual fund scheme with an expected annual return of 12%. However, you also want to increase your SIP amount by 10% yearly to match your income growth. You can use a SIP top-up calculator to find out how much your investment will be worth at the end of 15 years. The formula for calculating the future value of SIP with top-up is:

M = P [(1 + i)^n – (1+r)^n] x (1+i)/[ i-r]

Where M is the maturity amount
P is the initial monthly investment amount
i is the periodic interest rate (12%/12 = 0.01)
r is the periodic top-up rate (10%/12 = 0.0083)
n is the number of payments (15 x 12 = 180).


Using this formula, we get:

M = 5,000 [(1 + 0.01)^180 - (1 + 0.0083)^180] x (1 + 0.01) / [0.01 - 0.0083]
M = Rs. 50,72,674

This means that your investment of Rs. 19.35 lakh will grow to Rs. 50.72 lakhs in 15 years at a 12% annual return with a 10% top-up.

3. SIP Goal Calculator

Suppose you want to invest in a mutual fund scheme that can help you achieve your financial goal of buying a car worth Rs. 10 lakhs after 5 years. You can use a SIP Goal calculator to determine your monthly investment to reach your goal. The formula for calculating the required SIP amount is:

M = m x i / [ (1+i)^n - 1 ]

Where P is the required monthly investment amount
M is the target amount
i is the periodic interest rate (assume 10%/12 = 0.0083)
n is the number of payments (5 x 12 = 60).

Using this formula, we get:

P = 10,00,000 x 0.0083 / [(1 + 0.0083)^60 - 1]
P = Rs.13,181

This means you need to invest Rs.13,181 per month for 5 years in a mutual fund scheme offering a 10% annual return to buy a car worth Rs.10 lakh.

Benefits of Using a Systematic Investment Plan Calculator

  • Helps you plan your investments: SIP calculators can help you plan your investments by estimating expected returns based on your investment amount and tenure. This can help you set realistic investment goals and plan your finances accordingly.
  • Saves time and effort: These calculators save you time and effort by eliminating the need for manual calculations. With just a few inputs, you can estimate your expected returns, saving you time and effort in the long run.
  • Offers flexibility: It offers flexibility by allowing you to adjust your investment amount, duration, and expected rate of return. This can help you make informed decisions about your investment strategy and adjust your plan as needed.
  • Helps you compare investment options: With a SIP calculator, you can compare different investment options and choose the one that offers the best returns. This can help you decide where to invest your money and maximize your returns.
  • Provides clarity: It provides clarity by clearly understanding the expected returns on your investments. This can help you make informed decisions about your investments and avoid any unpleasant surprises down the road.

Overall, using a SIP Mutual Fund calculator can help you plan your investments, save time and effort, offer flexibility, compare investment options, and provide clarity. Therefore, it is a valuable tool for any investor looking to make informed investment decisions.

Overview of Samco SIP Calculator

Samco SIP Calculator is an online tool that helps you calculate the returns on your mutual fund investments made through Systematic Investment Plan (SIP). Samco SIP Calculator allows you to estimate the future value of your SIP investment based on the monthly investment amount, the expected rate of return, and the investment tenure. You can also compare different mutual fund schemes and their performance using this calculator.

Some of the features and benefits of the Samco Systematic Investment Plan Calculator are:

  • It allows you to enter your monthly investment amount, expected rate of return, and investment duration to estimate the future value of your SIP.
  • It helps you to see the difference in returns and maturity values for different types of SIPs, such as regular SIP, top-up SIP, flexible SIP, perpetual SIP, and trigger SIP.
  • It shows you a graphical representation of your SIP growth over time, as well as a detailed table of your monthly investments and returns.
  • It provides you with useful tips and insights on how to optimize your SIP portfolio and achieve your financial goals.
  • It helps you to save tax by showing you the tax benefits of investing in SIPs under Section 80C of the Income Tax Act.
  • It is free, easy to use, and accessible online

Samco SIP Calculator is a user-friendly and reliable tool that can help you make informed decisions about your mutual fund investments. You can find this calculator online on Samco's website or app.

How to Use Samco SIP Calculator?

To use Samco SIP Mutual Fund Calculator, you need to follow these simple steps:

  • Visit Samco's website or app and go to the Calculator section.
  • Enter the monthly investment amount or the target amount that you want to achieve through your SIP investment.
  • Enter the investment duration in years or months.
  • Enter the expected rate of return on your SIP investment. You can also use the slider to adjust the rate of return.
  • Click on the Calculate button to see the results.

The results will show you the total invested amount, the total maturity amount, and the total gains on your SIP investment. Using the Samco Systematic Investment Plan Calculator, you can compare different mutual fund schemes and their performance using the Compare Funds option.

Conclusion

Investing in the stock market can be intimidating, especially for beginners who are just starting out. But with the help of a SIP calculator, the process can be made simpler and more manageable. We've covered the fundamentals of what a SIP calculator is, how it works, and how to utilize it to your benefit in our beginner's introduction to investing. By using this calculator, you can get a better understanding of your investment goals and how to achieve them. It provides you with a potential return on investment over time while taking into consideration variables like your investment amount, expected returns, and investment horizon. This can help you make informed decisions about where to invest your money and how much to invest.

So, if you're ready to start investing in the stock market but don't know where to begin, take advantage of the power of a SIP. And when you're prepared to invest, think about utilizing Samco to make stock market investments. You may begin your investing adventure with confidence thanks to their user-friendly website and affordable costs.

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FAQ’s

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