SIP Calculator

₹ 25,000
12%
10 Yr





Systematic Investment Plan Calculator

Since SIPs are one of the easiest ways to invest your money in mutual funds, SIP return calculators are becoming popular in the modern investment landscape. The process of investing in a set can help you to analyse your returns. Calculate your mutual funds SIP returns with PL Capital Group – Prabhudas Lilladher’s SIP calculator that aligns your investment goals.

What is an SIP Calculator?

PL Capital offers a free online Systematic Investment Plan (SIP) calculator, which assists you in calculating the returns on your SIP investments. It is useful for comparing the returns from different SIP investing plans.

You may estimate the future value of your SIP investments with PL’s mutual fund SIP calculator. It considers a number of factors, such as the investment amount, the regular SIP contributions, the expected rate of return, and the total duration of the investment.
This SIP calculator helps long-term investors build wealth in the long run.

How Does an SIP Calculator Function?

An SIP calculator functions based on the following formula:
M = P × ({[1 + i]^n – 1} / i) × (1 + i)
In the formula above:

  • 1. M is the sum you get when you reach maturity.
  • 2. P is the sum that you invest regularly.
  • 3. N represents the number of payments you have made.
  • 4. I represents the periodic rate of interest.

    • Let us understand this with an example. Suppose you wish to invest INR 500 a month for a duration of 12 months at an 11% periodic rate of interest. You need to require the monthly rate of return (i) to determine the SIP maturity amount.

    Simply dividing the yearly return by 12 is a typical error. For instance, since returns are compounded, calculating a 11% annual return as 11 ÷ 12 = 0.91% each month is incorrect.

    The following formula should be used to convert the yearly return into a monthly return:

    Monthly Return = {(1 + Annual Return)^1/12} – 1

    The effective monthly return for a 12% annual return is around 0.87%, not 0.91%.

    This is because a 12-month compound interest rate of 0.87% yields an annual return of 11%. However, the compounded yearly return rises to almost 11% if you assume 0.91% each month, producing an exaggerated figure.

    The monthly rate of return will thus be as follows, using the calculation above:

    i = (1 + 0.11)1/12 − 1

    = 0.0087 or 0.95%

    Therefore, M = 500 x ({[1 +0.0087 ]^{12} – 1} / 0.0087) x (1 + 0.0087), which gives INR 6,324 approximately in a year.

    Please note that an SIP's interest rate will vary depending on the market conditions. The expected returns will fluctuate, whether they rise or fall.

    How Does an SIP Calculator Assist You?

    PL’s SIP calculator can help you in numerous ways, which are described below:

    1. Choosing the Right SIP

    An SIP calculator can quickly provide you with several factors to evaluate a SIP plan. Using an SIP calculator online, you may evaluate several mutual fund schemes based on those factors and select the SIP that best suits your needs.

    2. Estimation of Mutual Fund Return

    PL’s SIP return calculator allows you to calculate the rate of return needed to get to the amount you want at the end of your investment tenure.

    3. Determining the Actual SIP Amount

    You may also determine how long it will take for your investment to increase sufficiently. You can enter and experiment with different combinations of time period, monthly SIP, and expected return on investment if you know that you need to reach a specific corpus.

    How to Utilise PL Capital's Systematic Investment Plan Calculator?

    1. Calculation of SIP Returns on Maturity

    Follow the steps below to calculate the SIP returns on your maturity using an SIP calculator:

  • 1. Enter your desired investment amount.
  • 2. Enter the duration you wish to invest in.
  • 3. Put the anticipated rate of return here.
  • 4. Immediately, the calculator will provide you with the value of your invested funds after the tenure, the entire invested amount, and the anticipated investment returns.

    • 2. Monthly Investment Amount

    Follow the steps below to determine the monthly investment amount on your maturity using an SIP calculator:

  • 1. Enter the anticipated target amount or the anticipated returns.
  • 2. Enter the time frame you wish to invest in.
  • 3. Put the expected rate of return.
  • 4. Based on the duration and rate of return, an SIP calculator calculates the values and provides the amount you must invest each month to meet your investment goal.

    • Benefits of Using PL Capital's Systematic Investment Plan Calculator

    There are numerous benefits you can avail using PL Capital’s SIP calculator. Some of them are:

  • 1. An SIP calculator helps you to consider the amount and duration while planning your investment.
  • 2. PL Capital’s online SIP calculator can help you with your financial planning. You can determine how much you must consistently invest to accomplish your goal. This will assist you in creating your monthly spending plan.
  • 3. It assists you in estimating the entire investment value at the end of your SIP maturity period.
  • 4. An SIP calculator lets you reduce the time needed for a manual calculation and shows reliable results.
  • 5. PL’s SIP calculator assists you in evaluating and comparing different SIP investing plans.
  • 6. An SIP calculator provides you with accurate results instantly.

    • FAQs on SIP Calculator

    What information is necessary to use a systematic investment plan calculator online? ›

    You must enter your desired investment amount, estimated rate of return, investment duration, and frequency to utilise an online SIP calculator.

    How can I determine the returns on my SIP investment? ›

    An SIP calculator is a straightforward tool that can help you determine the returns on your SIP contributions in mutual funds. You just have to put your monthly investment amount, rate of return, and total duration.

    How accurate is a long-term investment SIP calculator? ›

    The total return on an investment of a specific quantity, growth rate, and time period may be accurately calculated with a SIP calculator. You need to enter the amount, period, and compounding rate of return according to your choices and presumptions.

    Can I invest in tax-saving ELSS mutual funds using a SIP calculator?›

    It is not only feasible but also recommended to start an SIP on Equity-Linked Savings Schemes (ELSS). It creates a habit of saving taxes and phases your ELSS lock-in term.

    What distinguishes the mutual fund NAV from the SIP return?›

    The primary difference is that an SIP return is the total profit or loss an investor experiences from a sequence of purchases over time, whereas the Net Asset Value (NAV) is the current value per unit of a mutual fund. SIP is a mutual fund investment strategy rather than an actual investment product.

    Can step-up SIPs be incorporated into the calculator?›

    Yes, it is possible to include step-up SIPs in a specific step-up SIP calculator. It is a variant of a standard SIP calculator and is designed to account for yearly changes in your investment amount.

    Which is better: SIP vs lump sum investment›

    Investors with varying risk tolerances and financial circumstances might benefit from both lump sum and SIP. SIPs are ideal for people with steady earnings and provide the advantage of disciplined investing. However, for people who have a sizable amount of money ready to invest, lump sum investments are the best option. Whatever strategy you decide on, the most important thing is to have an investment goal.
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