Best SIP Calculator Online

Have you ever thought about your future finances, especially when it comes to managing your future investments? Well, to solve the financial investment issue, there is one tool called the SIP Calculator (Systematic Investment Plan calculator) that makes your financial investments crystal clear. It is a very powerful tool that enables investors to view their returns on their SIP investments. It helps investors to make informed decisions for their future investments. The SIP Calculator is not only for financial investors. But it also comes with a user-friendly interface that can be used by beginners or those who are planning to invest their finances. This tool helps to contribute your fixed amount of money to the various mutual funds. Through the journey of this informative blog, let’s learn more about this financial tool, and know about its working and how to use it effectively.    

What is the SIP Calculator?

The SIP Calculator, popularly known as the Systematic Investment Plan Calculator, is a very simple yet effective tool that helps investors to invest their finances in various mutual funds. This calculator helps you to plan and schedule your investments by enabling you to estimate your SIP returns from your investments. This SIP return calculator assists investors in calculating their monthly investment amount, investment duration, and the expected rate of return by determining the future value of their investments. 

By using the best SIP return calculator, you can choose which plan is better suited to your pocket. Whether it is your short-term investment or long-term SIP return calculator assists you with the best possible investment plans. As per the data, from 2022, every eight out of ten customers are using the right financial investment techniques, including the SIP Calculator, to manage their finances. 

Features of SIP Calculator:

The following are a few of the SIP Calculator’s features:

1. This financial tool has a user-friendly interface, making it accessible and easy to use for beginners as well as pro investors. Anyone can navigate through this calculator effortlessly. 
2. These calculators are programmed with some special features, which help to give accurate predictions about your investment returns. By inserting the various information, such as the investment amount, date, duration, and expected rate of return, investors can obtain accurate information on their future returns on investments. 
3. SIP Calculators are considered one of the time-saving tools. With just a few taps, you can get quick information about your investments, saving your valuable time and effort.  
4. The SIP Mutual Fund Calculator is one of the versatile tools catering to your wide range of investment options. Whether you want to gather information about equity funds, debt funds, hybrid funds, or any type of mutual fund, these calculators will assist you in estimating returns across the different investments. 
5. The SIP Calculator’s free availability is among its most intriguing characteristics. Investors can use this tool without spending any additional cost, enabling them to make the right decision. 

Types of SIP Calculator:

Systematic Investment Plans Calculators come in various forms to help investors in better planning of their investments. The above-mentioned are the various types of SIP Calculators with their specific uses: 

1. Basic SIP Calculator: Find out how much your SIP can grow over time based on how much you invest, for how long, and the returns you expect. Perfect for beginners.
2. Step Up SIP Calculator: It is a type of SIP Calculator that shows how your wealth can grow if you increase your SIP every year, great for people whose income rises with time.
3. SIP with Inflation Adjustment Calculator: Understand the real value of your investments after adjusting for inflation, so you know what your money will actually be worth.
4. SIP Goal Planner / Target SIP Calculator: Determine the monthly investment required to achieve a particular financial objective within the time frame of your choice.
5. SIP Delay Cost Calculator: Shows how postponing your SIP by months or years can cut down your final corpus, reminding you why it’s smart to start early.
6. One-Time vs SIP Comparison Calculator: Compare investing a lump sum versus monthly SIPs and see which strategy fits your financial goals better.
7. SIP Tax Benefit Calculator (ELSS SIP): Find out how much tax you can save under Section 80C when you invest in ELSS funds through SIP.
8. SIP Return Calculator (XIRR-Based): Calculate the actual returns on your SIP using XIRR, best for tracking irregular investments.

SIP Calculator Formula: 

The following formula is used by a SIP investment calculator to determine the anticipated returns:

Formula: FV = P × [({(1 + r)^n – 1} / r) × (1 + r)]

FV is an acronym for the investment’s future value.

P stands for the Monthly Investment value (also known as periodic investment)

R stands for Expected Rate of Return 

N stands for the total Number of Years

For Example, 

Suppose an individual wants to invest Rs 7,500 per month in a mutual fund SIP, which offers an annual return of 12%. If an individual plans to invest Rs 7,500 per month for a period of 10 years, then the SIP Calculator will calculate your money as follows: 

FV = 7,500 [ (1+0.01)^120-1 ] * (1+0.01)/0.01

Your financial value after 10 years would be 17,61,988.75

As a result, your total investment value will be 17,61,988.75 after ten years.

Steps to Use the SIP Calculator:

The SIP Calculator Online can be used in the following simple steps:

1. First, enter the monthly SIP amount you want to invest. 
2. Next, estimate the rate of return you may expect from your investment. 
3. After that, specify the duration of your investment. 
4. Once you fill in all the details in the SIP Calculator, click on the Calculate button. Now, the calculator will show you the estimated returns on your next SIP investment. 

What is the SIP Mutual Fund Calculator?

An SIP Mutual Funds Calculator is an online tool that helps you estimate the future value of your SIP investments in mutual funds. By adding your desired monthly investment amount, expected annual rate of return, and the investment tenure (like for 5 years or 10 years), it calculates your investment amount and gives you an accurate result. This tool uses the correct mathematical formulas to forecast the potential wealth. It helps your investment plans reach future financial goals such as retirement or buying a new home. 

How does the SIP Mutual Fund Calculator work?

The above-mentioned is the Working of the SIP Mutual Fund Calculator: 

1. First, you have to input details such as the Monthly SIP amount, your duration of investment, and then your expected rate of return.  
2. After that, you have to apply the formula for the calculation of your SIP amount. The formula is as follows: 

M = P × ({[1 + i]^n – 1} / i) × (1 + i) 

M stands for the total amount of money you will get upon the maturity of your investment plan. 

P stands for the Amount invested at regular intervals. 

N stands for the number of times an investment is made.

I is for the Interest rate. 

Let’s understand it more easily with the help of an example.  

Suppose Rohit, a young professional, plans to invest ₹10,000 every month for the next 30 years. The scheme offers a 12% annual return, which works out to about 1% interest per month.

Here’s how it adds up:

• Monthly investment (P): ₹10,000
• Monthly interest rate (r): 1% (0.01 in decimal)
• Total months (n): 30 years × 12 = 360 months
  

Using the future value formula, his investment grows step by step, compounding every month. By the end of 30 years, Rohit’s total investment turns into nearly ₹3.08 crore.

What is the SBI Return Calculator?

The SBI Return Calculator is an online, free tool that is primarily referred to as the SBI SIP Calculator. Unlike the SIP Mutual Fund calculator, it also helps investors to know the future investments of their SIP investments in the SBI Mutual Funds. By adding all the essential components in the SBI Return Calculator, you will know the total estimated value of your investments. This will help you in assisting with your financial planning and future goal-setting. 

What details are required to use the SIP Calculator Online?

The list of details required to use the SIP Calculator Online is as follows: 

1. Total SIP Amount to be invested regularly. 
2. An estimated annual growth rate is required that you expect from your investment. 
3. The investment tenure, basically the length of time for which you want to keep investing. 
4. SIP Frequency: This detail is optional. Some of the SIP Calculators allow you to specify that your investment is monthly, annually, or quarterly.  
5. Lump-Sum Investment: This is also an optional detail. As some of the calculators include an option to factor in a one-time investment, or you might make in addition to your regular SIPs.    

Various Risks of the SIP Investments:

All investments carry some level of risk, and SIPs are no different. While they are a smart way to invest, here are a few risks to keep in mind:

• Market Risk: Your returns depend on how the market performs, and markets can be unpredictable, especially with equity funds.
  
• Fund-Specific Risk: Not every fund does well. Choosing the wrong fund may affect your returns.
  
• No Guaranteed Returns: The returns shown are only estimates, not promises.

FAQS:

Recommended

1.	HRA Calculator
2.	Gratuity Calculator
3.	Free Payslip Generator Online
4.	Human Resource Accounting
5.	Key Difference Between Appointment Letter vs Offer Letter