SIP Calculator – Systematic Investment Plan Calculator

"SIP or Systematic Investment Plan is investing a fixed amount in mutual fund schemes at regular intervals. Generally, SIPs let you invest weekly, monthly, or quarterly. SIP calculator helps you calculate estimate returns that you can accumulate on your monthly investment over a certain period of time. Estimate the future returns on your SIP investments with the SIP Return calculator."

What is SIP Calculator?

An SIP calculator is an easy-to-use online tool to determine the potential returns on mutual fund investments through SIP. The SIP calculator also offers guidance on the monthly investment required to meet a future financial goal. However, the actual returns vary and depend on several factors and investors must use this as an estimate. Additionally, SIP calculators do not consider entry and exit loads, if any.
Using an SIP calculator is very simple and individuals need to input three variables. The monthly investment amount, time horizon, and expected returns. The calculator then automatically does the calculation to provide the estimated amount that may be accumulated over the input time horizon.

How to Calculate SIP Returns - Example

Let us understand with an example. Assume the monthly SIP instalment is INR 15,000 invested for a period of 15 years and expected returns are 12% per annum. The total investment is INR 27 lakhs and the investment value after 15 years would be INR 75,68,640.

You can adjust the inputs to determine the estimated returns if the investment amount, tenure, or returns are increased or decreased.

Benefits of Using SIP Return Calculator

Mutual fund returns are not assured, and investors may have difficulties in determining the growth of their invested capital or knowing how much to invest to meet future goals. An SIP Calculator helps overcomes these limitations and has the following benefits:

• • Calculation of future value of your investments

• • Eliminate the need for complex calculations and save time

• • Easy and user-friendly making it suitable for everyone

• • Free and unlimited access and use

How to Use SIP Calculator?

It is very simple to use the SIP Plan Calculator from Aditya Birla Sun Life Mutual Fund.
You just need to enter the amount which you want to invest per month, the expected rate of returns and the number of years for which you want to remain invested .
After you input the values, our SIP calculator will show the estimated total investment value and the total invested amount after completion of your investment tenure.

How Does SIP Calculator Work?

Online calculators have eliminated the need to conduct complex calculations to determine potential returns on SIP investments. However, being aware on how these numbers work is always beneficial and brings higher confidence to your investment strategies. The formula used to calculate SIP returns is

FV = P*{[(1+r)(n-1)]/r}*(1+r)
Where:
FV = Future Value
P = Periodic Contributions
r = Expected rate of return
n = Number of periodic contributions
Let us understand the above formula with an example. Assume you start a monthly SIP of INR 10000 for a five-year period and expected rate of return is 12%. The formula would be as below:
FV = 10000*{[(1+0.01)(60-1)/0.01]}*(1+0.01)
r is 0.01 as the expected rate of return is 12% per annum, which translates into 1% per month.

Frequently Asked Questions

What is the average return in SIP?

Returns on mutual fund investments are not assured. Therefore, the SIP returns may be determined as per the category of the funds you invest. Before investing in SIP, it is recommended to determine your risk appetite to understand the potential returns on your investments.

How much can I invest in SIP?

There is no maximum limit on the SIP instalment. However, the minimum amount with which you can start a SIP is INR 100.

Are SIPs similar to mutual funds?

Investors may often confuse between mutual funds and SIPs. The fact is that SIP is an investment option available to invest in mutual funds. SIPs are not funds or schemes or stock investment. It is an option that allows you to invest a specific amount at periodic intervals.

Can I modify my SIP amount?

Certain type of SIP like the flexible SIP allows you to modify the instalment amount. Other types of SIPs do not allow you to modify the amount during the selected investment duration. However, you may pause or cancel the SIP as per your financial objectives.

How to use Aditya Birla Sun Life SIP Calculator?

Using the Aditya Birla Sunlife SIP calculator is very simple. Here is how you can get the results in a few clicks:

• • Select the scheme

• • Input the SIP instalment amount

• • Choose the interval – fortnightly, monthly, or quarterly

• • Enter the SIP start and end dates

• • Press calculate tab to see the result instantly

What are the types of SIPs available?

You can choose from different types of SIPs. Step-up or Top-up SIP allows you to increase the investment at specific intervals by a particular percentage or amount.
Perpetual SIP continues your investment as long as desired with no end date.
Trigger SIP starts your investment on a particular date, event, index level, or NAV.
Flexible SIP allows changes to the instalment as per your requirements.

Can I renew an SIP?

Yes, investors can automatically renew their SIPs. Mutual fund houses also provide you the option to cancel the auto-renewal feature.

Can I pause my SIP investments?

Yes, asset management companies provide you the option to pause your SIP investments for a particular period of time.

Can I estimate my SIP returns online?

Can I estimate my SIP returns online?

Past performance may or may not be sustained in the future.
Aditya Birla Sun Life AMC Limited /Aditya Birla Sun Life Mutual Fund is not guaranteeing/offering/communicating any indicative yield/returns on investments.
SIP does not assure a profit or guarantee protection against loss in a declining market. Nothing contained herein shall amount to an offer, invitation, advertisement, promotion or sponsor of any product or services. In view of individual nature of tax consequences, each investor is advised to consult his / her own professional tax advisor before taking any investment decision.