BOI SIP Calculator

Bank of India SIP Calculator

Systematic Investment Plans (SIPs) allow you to steadily accumulate money through small but regular investments. Using the Bank of India SIP Calculator, you may plan your investments and select the best mutual fund to meet your financial objectives.

How does the Bank of India SIP Calculator work?

The Bank of India SIP Calculator is a valuable online tool for estimating prospective returns from SIP in mutual funds.

The calculator shows how your money may increase over time based on details such as your monthly investment amount, estimated return rate, and investment term.

The Bank of India SIP Calculator facilitates better financial planning by letting you estimate the probable return as per your budget and risk appetite.

Formula to calculate Bank of India SIP returns

The formula to calculate BOI SIP is:

FV = P x ({[ 1+ i] ^ n -1} / i) x (1+i)

Here,

FV = Future value (final payout at maturity)

P = Principal investment while starting the SIP

i = Annual interest rate (compound interest) in percentage/12

n = Number of months or investment duration

Benefits of investing through SIP

• Encourages frequent investing for disciplined savings.
• Rupee cost averaging lowers market volatility.
• Compounding encourages long-term wealth growth.
• You can start a SIP by investing as low as ₹100 each month.
• SIPs offer the flexibility to suspend and rebalance investments as needed.
• Diversification spreads risk among multiple investments.

How to use the Bank of India SIP Calculator?

• Open the Bank of India SIP Calculator.
• Choose your monthly investment amount.
• Choose the investment period.
• Enter the expected rate of return.
• The BOI SIP Calculator will then show the gains over the investment period.

How can the Bank of India SIP Calculator help you?

• Estimate growth: Displays the possible increase from monthly deposits.
• Future returns: Calculates expected returns depending on investment and time.
• Budget planning: Assists with money management and goal setting.
• Scenario Evaluation: Compares several investment options.
• Track Progress: Monitors progress toward targets.

Examples of Bank of India SIP growth

Example 1:

• Monthly Investment: ₹5,000
• Duration: 5 years
• Expected Annual Rate of Return: 10%
• Total Investment: ₹5,000 × 12 months × 5 years = ₹3,00,000
• Expected gain: ₹90,412
• Future Value: Approximately ₹3,90,412

Example 2:

• Monthly Investment: ₹5,000
• Duration: 10 years
• Expected Annual Rate of Return: 10%
• Expected Gain: ₹4,32,760
• Total Investment: ₹5,000 × 12 months × 10 years = ₹6,00,000
• Future Value: Approximately ₹10,32,760