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An online tool to calculate returns on your SIP investments in mutual funds.
Calculate the future value of your SIP investment
Monthly SIP
Lumpsum
Investment amount
₹ 100 ₹ 1000000
Tenure
Year
1 Year 30 Year
Expected returns
%
1 % 30 %
Investment amount ( in Rs.)
₹ 1000 ₹ 50000
Tenure (in years)
Year
1 Year 30 Year
Expected return (in %)
%
1 % 30 %
₹
Future Value
₹
Total returns
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Disclaimer:
Mutual Fund SIP calculator may provide potential investors an approximate estimate on the maturity amount of the monthly SIP, purely based on mathematical calculation of the projected annual return rate selected by investor. However, such calculation does not factor the actual performance by the Asset Management Company (AMC) and should not be treated as any advice or assurance about the actual return of investment. Mutual Funds do not have a fixed rate of return and it is not possible to predict the rate of return. Please note that theSIP calculatorare for illustrations only and do notrepresent actual returnswhich may vary depending on various factors including but not limited to actual performance, expense ratio, taxation, exit load (if any), etc.
SIP - Systematic Investment Plan Calculator
Systematic Investment Plan (SIP) is a process of investing a fixed sum of money in mutual funds at regular intervals, such as weekly, monthly, or quarterly. Recently, SIP has gained a lot of popularity, with the SIP AUM reaching a record high of Rs. 13.09 lakh crore in July 2024, up from Rs. 12.43 lakh crore in June 2024. Additionally, the number of SIP accounts surged to 9,33,96,174 in July 2024, compared to 8,98,66,962 in June.
However, most SIP investors are still unaware of what they could accumulate by the end of their investment tenure. One of the easiest ways to determine the wealth gain and expected returns for your monthly SIP investments is by using an SIP calculator. It is worth mentioning that a monthly SIP allows you to grow your investments consistently by leveraging the SIP interest rate. Using the Systematic Investment Plan calculator, you can accurately forecast your returns and tailor your investment strategy for maximum growth.
What is a SIP calculator?
The primary purpose of the SIP calculator is to show how your SIP investment will grow over time. It breaks down the future value into the total principal amount and the returns on your investment. This helps you understand how much of your future value comes from your own contributions and how much comes from the returns on those contributions.
Thus, the mutual fund SIP calculator provides a rough estimate of the maturity amount for your monthly SIP based on a projected annual return rate.
How can a SIP calculator help you?
The SIP calculator allows you to choose your investment frequency, such as monthly or quarterly investments. You can enter the amount you wish to invest, the expected rate of return in SIP, and the investment duration in years to see how your investment will grow.
This way, for investors, the online SIP calculator is a beneficial tool that estimates the returns they will earn after the investment tenure. It helps them determine the amount to invest, shows the total invested amount, and provides an estimated value of the returns.
Although the online SIP return calculator provides an illustration rather than exact figures, it is useful for getting a broad idea of how much you need to invest each month or quarter to reach your target amount.
How to calculate SIP returns?
To calculate SIP returns effectively, understanding the mathematical formula and its application is crucial. This process not only helps estimate SIP returns but also provides insights into the future value of your investment. Let's calculate returns on your SIP investments.
Most SIP calculators use the following SIP formula:
FV = PV × ([{(1 + R)^N} – 1)]/ R) × (1 + R)
Where:
FV | Future value of investment |
P | Principal contributions each month |
r | Expected rate of return (per month) |
n | Number of contributions towards the principal |
Let’s look at some examples to figure out how this calculator can calculate SIP returns.
To better understand how the SIP return calculator works, check this example below:
- Say you invest Rs. 5,000 monthly (Monthly SIP investment)
- Your investment tenure is 7 years
- Your expected Rate of Return is 12% per year
In this case, your total investment would be Rs. 4.2 lakhs and the future value will be Rs. 6.53 lakhs.
However, be aware that the systematic investment plan calculator assumes a consistent rate of return, which isn’t always true in the real market. This means the actual return could be different from what the SIP calculator estimates, as market returns can fluctuate.
How does the SIP return calculator work?
The SIP return calculator uses a set algorithm to estimate your investment’s returns. You can quickly see the expected SIP return by entering a few details into the online SIP calculator. Let’s see how it works:
- Step 1: Choose your target or investment amount.
- Step 2: Enter the SIP amount you plan to invest regularly.
- Step 3: Select the SIP duration or how long you wish to invest.
- Step 4: Enter the expected rate of return on your investment.
After entering all these details, click ‘Calculate’. The calculator will instantly show the estimated maturity value or the investment needed to reach your goal.
How to use Bajaj Finserv’s SIP calculator?
Using the online SIP calculator is an easy way to check your maturity amount. For a better understanding, let’s study the various steps below:
- Step 1: Enter the SIP amount you wish to invest, ranging from Rs. 1 to Rs. 10 lakh
- Step 2: Choose how often you want to invest. This could be a monthly or quarterly SIP or a lump sum amount.
- Step 3: Enter the expected rate of return, which can vary from 1% to 100% of your investment.
- Step 4: Select the investment duration, which could be anywhere from 1 to 30 years.
After entering these details, the online SIP calculator will instantly display the estimate on your screen. It will show you both your investments and the future value of your investments.
Advantages of mutual funds SIP calculator
A mutual fund SIP calculator is a valuable tool. It helps investors determine how much their investments could grow over time. All investors have to do is input basic information like how much they plan to invest each month and the expected rate of return. To get better clarity, let’s study some of its advantages:
Easy to use
One of the major advantages of the SIP calculator is its user-friendly nature. Being a simple tool, anyone can use it without much hassle. By entering just a few details, like the monthly SIP amount, expected rate of return, and tenure, you can instantly see an estimated value of your investments.
You can also experiment with the SIP calculator by changing these variables to understand how different factors impact your returns.
Helps in deciding the SIP amount
The SIP calculator is particularly useful when you are trying to figure out how much to invest in mutual funds via SIPs. By inputting your financial goals and expected rate of return, the calculator can help you determine the monthly SIP amount you need to invest to achieve your desired returns.
This feature is invaluable for investors who want to ensure they are contributing the right amount to meet their financial objectives.
User-oriented
The mutual fund SIP calculator is free to use and can be accessed as many times as needed. It allows you to continuously refine your investment strategy. In this way, it supports informed decision-making and makes investment planning easier and more effective.
What causes fluctuations in SIP interest rates?
SIP interest rates refer to the likely returns you can earn from your SIP mutual fund investments over time. These returns are not fixed; they can change based on various factors in the current market. Let’s check out some key reasons why SIP interest rates may fluctuate:
- Interest rates: When the RBI changes its interest rates, it impacts the returns on SIP investments. It must be noted that higher interest rates often lead to lower returns on equity mutual funds, while lower interest rates boost returns.
- Global financial events: Events like economic recessions, political instability, or changes in trade policies significantly affect the stock market. Since SIP mutual funds are linked to market performance, such global financial events often cause fluctuations in SIP interest rates.
- Government regulations: Changes in government policies, such as tax laws or investment regulations, can also impact SIP interest rates. For example, say some new regulations affect the sectors in which your mutual fund invests in. Now, this could influence the expected returns on your SIP investments.
Wrapping up!
The value of SIP calculators in the realm of financial planning cannot be overstated. These tools offer a straightforward and efficient method to calculate returns for SIP investments, empowering investors with the knowledge and insights needed to make informed decisions. By utilising a mutual fund SIP calculator formula, investors can easily project the future value of their investments, taking into account the compound interest effect and various investment parameters. The systematic investment plan calculator online serves as an indispensable resource, enabling individuals to strategise their investments based on precise calculations rather than guesswork.
The key benefits of using a SIP calculator include the ability to visualise potential investment growth, access tailored investment strategies, and enjoy the convenience of managing financial planning from anywhere at any time. These advantages highlight the importance of incorporating such tools into one's investment planning process. Ultimately, SIP calculators play a crucial role in simplifying the complexities of investment planning, making it accessible for both seasoned investors and those new to the world of mutual funds.
Frequently asked questions
Can I estimate my SIP return online?
Yes, estimating SIP returns online is quite straightforward with the help of a SIP calculator. By entering details such as the monthly investment amount, investment period, and expected rate of return, these online tools provide a detailed forecast of potential investment growth.
How much is Rs. 5,000 for 5 years in SIP?
If you invest Rs. 5,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 1,12,432 and the estimate future value of your investment will be Rs. 4,12,431.
What if I invest Rs. 3,000 a month in SIP for 5 years?
If you invest Rs. 3,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 67,459 and the estimate future value of your investment will be Rs. 2,47,459.
How much is Rs. 1,000 for 5 years in SIP?
If you invest Rs. 1,000 per month through SIP for 5 years, assuming 10% return. The estimate total returns will be Rs. 18,082 and the estimate future value of your investment will be Rs. 78,082.
How much is Rs. 4,000 per month in SIP for 10 years?
If you invest Rs. 4,000 per month through SIP for 5 years, assuming 11% return. The estimate total returns will be Rs. 80,988 and the estimate future value of your investment will be Rs. 3,20,988.
What is the Interest Rate of SIP?
SIPs don't have a fixed interest rate as they invest in mutual funds, whose returns are subject to market fluctuations. The 'interest rate' in the context of SIPs refers to the expected rate of return based on the historical performance of the mutual fund.
How much can I invest in a SIP?
Investment in a SIP can start from as low as Rs. 500 per month, with no maximum limit. This makes SIPs accessible to investors with varying financial capacities, allowing them to invest according to their budget and financial goals.
What is the maximum tenure of a SIP?
There's no cap on how long you can maintain a Systematic Investment Plan (SIP); it's open-ended, with a minimum tenure of three years. However, starting October 1, 2023, the National Automated Clearing House (NACH) imposes a maximum tenure of 30 years from the date of issuance. Additionally, the mandate will require specifying the final collection date (end-date).
How can an SIP return calculator help investors?
An SIP return calculator helps investors by providing an estimate of the future value of their investments. It takes into account the monthly investment amount, tenure, and expected rate of return to calculate the maturity amount, enabling investors to plan their finances effectively.
What details are required to use a SIP calculator online?
To use a SIP calculator online, you will need to provide some essential information:
- Investment amount: The initial amount you plan to invest every time you make SIP contributions.
- SIP frequency: How often will you make your investments—monthly, quarterly, or annually?
- Expected return rate: The annual growth rate at which you expect your investments to grow.
- Investment tenure: The total period for which you plan to invest.
After entering these details into the calculator, it will estimate the future value of your investments. It will show you how much money you can expect to earn through your SIP.
Are there any upper limits to SIP investments?
Generally, there are no upper limits for SIP investments. Investors can choose to invest any amount that suits their financial capacity and goals. However, each mutual fund scheme may require a minimum investment amount. Hence, it is always advisable to check the specific terms and conditions of the mutual fund you are investing in.
What is the average rate of return on SIP?
The average rate of return on SIP investments varies depending on the type of mutual fund you choose. For large-cap equity funds, which invest in well-established companies, you can generally expect a return of 12-18% per year. Meanwhile, mid-cap equity funds, which invest in medium-sized companies, can offer a return of 14-17% annually. At the same time, if you prefer investing in a long-term debt-based fund, which is less risky, the expected return is lower and usually hovers around 6-9% per year.
What is the minimum rate of return in SIP?
The minimum rate of return on SIP investments depends on the type of fund. For large-cap equity funds, the lowest expected return is around 12% per year, while mid-cap equity funds can offer at least 14% annually. On the other hand, for long-term debt-based funds, the minimum expected return is about 6% per year.
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Disclaimer:
Bajaj Finance Limited ("BFL") is registered with the Association of Mutual Funds in India ("AMFI") as a distributor of third party Mutual Funds (shortly referred as 'Mutual Funds) with ARN No. 90319
BFL does NOT:
(i) provide investment advisory services in any manner or form:
(ii) carry customized/personalized suitability assessment:
(iii) carry independent research or analysis, including on any Mutual Fund schemes or other investments; and provide any guarantee of return on investment.
In addition to displaying the Mutual fund products of Asset Management Companies, some general information is sourced from third parties, is also displayed on As-is basis, which should NOT be construed as any solicitation or attempt to effect transactions in securities or the rendering any investment advice. Mutual Funds are subject to market risks, including loss of principal amount and Investor should read all Scheme/Offer related documents carefully. The NAV of units issued under the Schemes of mutual funds can go up or down depending on the factors and forces affecting capital markets and may also be affected by changes in the general level of interest rates. The NAV of the units issued under the scheme may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities forming part of the Mutual Fund. The NAV will inter-alia be exposed to Price/Interest Rate Risk and Credit Risk. Past performance of any scheme of the Mutual fund do not indicate the future performance of the Schemes of the Mutual Fund. BFL shall not be responsible or liable for any loss or shortfall incurred by the investors. There may be other/better alternatives to the investment avenues displayed by BFL. Hence, the final investment decision shall at all times exclusively remain with the investor alone and BFL shall not be liable or responsible for any consequences thereof.
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Disclaimer on Risk-O-Meter:
Investors are advised before investing to evaluate a scheme not only on the basis of the Product labeling (including the Riskometer) but also on other quantitative and qualitative factors such as performance, portfolio, fund managers, asset manager, etc, and shall also consult their Professional advisors, if they are unsure about the suitability of the scheme before investing.