SIP Calculator

What is an SIP Calculator?

An SIP calculator is an online investment planning tool that lets you calculate returns on your SIP investment. It estimates the maturity value of your SIP investment. Whether you invest ₹5,000 or ₹100,000 per month, the calculator provides you with a clear idea of how your investment will grow in the years to come. By completely eliminating the need to calculate SIP returns manually, you can plan with greater accuracy and flexibility.

Understanding SIP Return Calculation with an Example

SIP returns are primarily calculated using a set formula. Here is a formula that you can use to calculate the returns on your SIP investment plan manually:

M = P × (1+i)ⁿ-1 / i × (1+i)

Manual calculations are prone to human errors that can lead to inaccurate results. Even a slight difference in interest rate, tenure or amount can create a difference of lakhs. Upstox SIP return calculator not only makes it easier to calculate returns, but is also faster and more precise.

SIP Return Calculation Example

You have to enter the investment amount, expected rate of return and desired tenure, and you will instantly get the results with a detailed payment schedule. Suppose you are investing ₹10,000 per month for 10 years in a SIP that offers a 12% return. Based on the calculation, you will invest a total of ₹12,00,000 in 10 years and get an estimated return of ₹11,23,390 after 10 years.

What are the Benefits of the SIP Calculator?

Here are the primary benefits of using the SIP calculator that you must know as an investor:

Accurate Return Estimates:

You obtain accurate estimates of possible returns on your SIP investment based on your personalised inputs.

Strategic Planning:

Looking to achieve a target of ₹10 lakh in 8 years? The SIP investment plan calculator helps you see how much you need to invest monthly to achieve that goal.

Risk Assessment:

You will learn how market volatility affects your investments in real-time and make informed risk management decisions.

Instant Results:

The SIP calculator shows you the returns that you can get on your SIP investments in seconds.

Customisable Inputs:

You can modify your monthly SIP amount or tenure. You can compare different scenarios to select one that aligns with your investment objectives.

Avoid Over/Under-Investing:

The mutual fund return calculator helps you plan your investments so that your finances are aligned with your SIP.

Zero Guesswork:

The SIP calculator saves you from the hassle of doing manual calculations using formulas. You get precise, trustworthy results always.

How to Read and Interpret the SIP Calculation? (Key Components)

The results of a mutual fund SIP calculator consist of three principal figures:

Total Invested Amount:

This is the total money you will invest over the tenure. For example, ₹5,000/month for 5 years = ₹3,00,000.

Estimated Returns:

This refers to the actual return on your SIP investment. It is based on your expected return rate (like 10% or 12%).

SIP Maturity Amount:

This is your total wealth at the end of the SIP period. It includes both your principal and returns.

The Upstox SIP calculator clearly breaks down your investments, returns and growth over the course of the investment in a table, like 5 years or 20 years.

How to Use Upstox's Mutual Fund SIP Calculator?

Here are the simple steps to follow to use the Upstox SIP calculator to get an accurate estimate of the total interest:

Enter Monthly SIP Amount:

Enter the monthly SIP amount that you want to invest towards your investment plan. You can invest from as low as ₹100.

Select Investment Duration:

This is the tenure or period of time you want to invest in the SIP. It could be 3 years, 5 years, 10 years, or any other tenure based on your goal.

Choose Expected Return Rate:

Select a rate of return based on historical averages, which is usually 10% to 15% for equity mutual funds.

The calculator automatically estimates the return right after you have entered the required parameters. Immediately, you'll see your SIP maturity amount, invested amount, and estimated returns.

How can a SIP Return Calculator Help You with Investment Decisions?

Upstox SIP return calculator helps you manage your finances and understand how much you'd have to invest to get a particular rate of return. Here's how our calculator helps you make financial and investment decisions:

Set Realistic Financial Goals:

If you are looking to save ₹20 lakh for your child's education in 10 years, the calculator informs you precisely what amount you need to invest monthly.

Assists in Budget Planning:

Assists you in choosing the SIP amount that fits into your monthly spending plan, guaranteeing that it doesn't put pressure on your budget.

Enhances Goal-Based Planning:

Promotes self-disciplined investing based on concrete objectives and ensures that your investment choices are not impulsive and uninformed, but well-planned.

Compare Funds and Growth Rates:

Can't decide whether to invest in a 10% return-generating fund and a 12% return-generating fund? A mutual fund SIP calculator can help you see how the 1-2% difference can affect your returns.