IDBI SIP Calculator

IDBI SIP Calculator

Systematic Investment Plans (SIPs) facilitate long-term wealth creation with small but regular investments. Using the IDBI SIP Calculator, you may plan your SIPs and select the best mutual fund strategy to meet your financial objectives.

This tool helps you plan and optimise your investment strategy as per your goal and risk appetite.

How does the IDBI SIP Calculator work?

The IDBI SIP calculator helps you estimate how much your money might grow over time with a Systematic Investment Plan in mutual funds.

The projection is based on the money you invest in the SIP, the expected return rate and investment tenure.

Formula to calculate IDBI SIP returns

The online SIP calculator generates a forecast value for your assets over the given term using the following simple formula:

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.
• The rupee cost averaging lowers the impact of market volatility on your investment.
• Compounding leads to long-term wealth accumulation.
• Investment can be started as low as ₹100 per month.
• It offers flexibility to suspend and rebalance investments when required.
• Diversification spreads risk among multiple investments.

How to use the IDBI SIP Calculator?

To use the IDBI SIP Calculator, follow these steps:

• Open the IDBI SIP Calculator
• Choose your monthly investment amount
• Choose the investment period
• Enter the expected rate of return

The calculator will show you the projected wealth growth over the investment period.

How Can the IDBI SIP Return Calculator help you?

• Estimate growth: The online tool demonstrates how your monthly deposits might grow over time.
• Future returns: Projects the returns you can expect based on your investment and time.
• Budget planning: Helps you manage your money and set goals.
• Scenario evaluation: Compares different investment choices.
• Track progress: Keep track of how well your investment is doing per your goals.

Examples of IDBI SIP growth

Example 1:

• Monthly Investment: ₹2,000
• Duration: 7 years
• Expected Annual Return: 8%
• Total Investment: ₹2,000 × 12 months × 7 years = ₹1,68,000
• Future Value: Approximately ₹2,25,721

Example 2:

• Monthly Investment: ₹2,000
• Duration: 15 years
• Expected Annual Return: 15%
• Total Investment: ₹2,000 × 12 months × 15 years = ₹3,60,000
• Future Value: Approximately ₹13,53,726