SIP Calculator

How Does the Upstox SIP Calculator Work?

When you invest in Mutual Funds, your investments are compounded over the years. Here is the formula used for calculating the returns on your investments:

M = P × (1+i)ⁿ-1 / i × (1+i)

Where:

M = Maturity Value of Investment

P = Initial Investment Amount

n = Number of SIP payments

r = Expected Rate of Return

You can input the value in the formula to find out the maturity value. Due to the complexity of the formula, manual calculations often lead to errors that affect your financial planning. To help you make an informed investment decision, Upstox has created a SIP calculator that precisely and quickly calculates SIP returns.

Example:

You enter an investment amount of ₹10,000 as your monthly SIP for a tenure of 10 years, which offers an average return of 12%. By using Upstox SIP calculator, you will get a total value of ₹23 Lacs at the end of 10 years.

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 Can an SIP Return Calculator Help You?

Your total value of investments consists of three crucial components:

• Total Invested Amount

  The total amount you invested over the investment tenure is the ‘Total Invested Amount’. For Example, if you invested ₹5000 every month for a period of 5years, your total invested amount will be ₹ 3 Lakhs.

• Estimated Return

  The estimated return is the actual amount you earn on your investment. It is based on the average expected return rate of your Mutual Fund.

• SIP Maturity Amount

  The sum of your total invested amount and the estimated return makes up the Total Value of Investment.

How to Use the Upstox Systematic Investment Plan Calculator?

Using the Upstox SIP calculator is simple and easy. Just follow the steps below:

• Enter Monthly SIP Amount

  You can enter the monthly SIP amount as per your financial plan. You can make an SIP payment of as low as ₹100 up to ₹10 Lakhs.

• Input Investment Duration

  Enter the investment duration or the period you want to invest in the Mutual Fund via SIP.

• Input Expected Rate of Return

  Enter the Expected Rate of Return on your SIPs. Every Mutual Fund discloses its average CAGR (Compounded Average Growth Rate), which shows the value of expected return on your Mutual Fund Investment.

Advantages of Using the SIP Calculator?

Here are the benefits of using SIP calculators:

• Estimate Accurate Return

  By using the Upstox SIP Calculator, you get a clear estimate of the return on your SIP investments. You can change your investment amount, average return, and the investment tenure.

• Strategic Planning:

  You can strategically plan your investments by using the SIP calculator to get an idea about how much you need to invest to achieve your financial goals.

• Risk Assessment:

  When you invest in mutual funds, you get Mutual Fund units. The value of these units fluctuates based on the market volatility. When the markets rise, the value of your mutual Fund units also rises. Similarly, when the markets fall, the value of your units falls as well. You can use Upstox SIP Calculator to adjust your SIP amount during market volatility to make informed investment decisions.

• Instant Calculation:

  Unlike manual calculations, Upstox SIP Calculator calculates the return on your SIP investments within seconds.

• Customisable Inputs:

  Upstox SIP Calculator allows you to customise the SIP amount, average return and tenure based on your financial plans and goals.

• Avoid Over or Under-Investing

  When you have a financial goal in mind, you can use SIP Calculators to ensure you don't end up over- or under-investing.