LIC SIP Calculator

How does the LIC SIP Calculator work?

The LIC SIP calculator instantly calculates the future value on your SIP investments and the returns based on the monthly SIP amount, expected rate of return and the investment tenure.

The calculator presents the total and annual return on SIP investments, helping investors visualise and analyse the returns. It must be noted that the calculator provides estimates based on current data, and actual returns may vary due to market fluctuations.

How do you use the LIC SIP calculator?

The LIC SIP calculator uses three parameters to calculate the estimated returns: monthly investment amount, expected rate of return, and the investment period. Here's how you can use the LIC SIP calculator.

• Step 1: Enter the monthly SIP amount or the goal amount.
• Step 2: Then enter the 'Expected Rate of Return'.
• Step 3: Finally, select the investment tenure.

What is the formula to calculate returns using the LIC SIP calculator?

To calculate the potential estimated returns of SIP investments, the LIC SIP calculator uses this formula:

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

Here:

• FV is the future value of your investment
• P stands for the principal
• R is the expected rate of return
• i is the compound rate of return
• n denotes the number of instalments

Benefits of investing through SIP

Investing in mutual funds through SIPs offer investors the following benefits.

Disciplined Investment Approach

SIPs promote regular investments, facilitating financial discipline and wealth-building over time.

Power of Compounding

In mutual funds, reinvested returns combined with a monthly SIP significantly increase your investment value.

Flexibility

You can change your SIP amount, duration or mutual fund scheme as per your preference anytime.

No Timing the Market

By investing through regular SIPs, you don't have to time the market and can focus on long-term wealth creation.

How can the LIC SIP Calculator help you?

The following are the benefits of using LIC SIP calculator to estimate the future value of your SIP investments.

User-friendly and Accessible

The LIC SIP calculator is easy to use, simplifying the process of estimating SIP returns for LIC mutual fund schemes.

Accurate and Instant Calculation

It instantly and accurately estimates the future return on investment, eliminating the need for manual calculations.

Enhanced Decision-making

Investors can quickly assess the potential estimated returns of various LIC schemes, helping them in decision-making.

Compare Mutual Fund Schemes

The LIC SIP calculator allows you to compare various plans by estimating their maturity amounts and returns, thereby helping you make an informed decision about the plan that best suits your investment goals.

Examples of LIC SIP growth

Example 1:

• Monthly Investment: ₹25,000
• Duration: 15 years
• Expected Annual Rate of Return: 13%
• Total Investment: ₹25,000 × 12 months × 15 years = ₹45,00,000
• Future Value: Approximately ₹1,38,92,032

Example 2:

• Monthly Investment: ₹12,000
• Duration: 10 years
• Expected Annual Rate of Return: 13%
• Total Investment: ₹12,000 × 12 months × 10 years = ₹14,40,000
• Future Value: Approximately ₹29,60,168