SIP Calculator - Calculate SIP Investment Returns | Fincash (2023)

Updated on May 22, 2023 , 75762 views

SIP calculator is a tool for investors to determine the expected returns of the SIP investment. With the help of a SIP Calculator, one can calculate the amount of investment and time period of Investing required to reach one's financial goal. The SIP calculator is more like a SIP planner which solves the question of "how much to invest in a SIP". While an investor may get bogged down by many aspects of Mutual Funds such as NAV, "How to Invest In a SIP", which are the Top SIP plans? or Best SIP Mutual Funds, the first question which needs to be answered is "how much to invest in a SIP?" and this is answered by the SIP calculator.

SIP Calculator

Calculate returns on your SIP investment as below-

#Illustration

Monthly Investment: ₹ 1,000

Investment Period: 10 years

Total Amount Invested: ₹ 1,20,000

Long-term Inflation: 5% (approx)

Long-term Growth Rate: 14% (approx)

Expected Returns as per SIP calculator: ₹ 1,94,966

Net Profit: ₹ 74,966

Know Your SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹447,579.
Net Profit of ₹147,579

Invest Now
(Video) SIP Returns Calculation Examples - ₹2000 for 1-15 Years | Calculate SIP Returns (Hindi)

Top 10 Best Performing Funds to Invest 2023

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2022 (%)
Nippon India Small Cap Fund Growth ₹100.019
↑ 0.13
₹26,294 100 9.67.626.650.518
Growth ₹51.243
↓ -0.09
₹8,672 500 8.28.822.14813.7
HDFC Small Cap Fund Growth ₹87.144
↓ -0.21
₹15,857 300 9.211.730.247.614.1
ICICI Prudential Smallcap Fund Growth ₹56.96
↑ 0.07
₹5,036 100 7.45.116.647.515.7
Kotak Small Cap Fund Growth ₹170.489
↓ -0.49
₹9,230 1,000 6512.146.316.9
Franklin India Smaller Companies Fund Growth ₹104.598
↑ 0.01
₹7,593 500 8.210.627.645.412.1
ICICI Prudential Infrastructure Fund Growth ₹106.41
↑ 0.06
₹2,373 100 7.18.128.345.415.9
IDFC Sterling Value Fund Growth ₹97.666
↑ 0.16
₹5,430 100 65.316.745.212.1
SBI Contra Fund Growth ₹240.507
↓ -0.41
₹9,720 500 6.55.523.144.916.8
Sundaram Small Cap Fund Growth ₹158.735
↓ -0.19
₹2,068 100 96.120.74310.2
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 May 23
*List of funds based on Assets >= 200 Crore & Sorted on 3 Year CAGR Returns.

Understanding SIP Calculator

SIP Calculator - Calculate SIP Investment Returns | Fincash (1)

Many people who are new to investing, find it difficult to understand SIP calculator and its working. Therefore, we have tried to solve their problem by giving detailed information. Read below to know!

When using a SIP calculator, you have to fill certain variables like-

  • The desired investment duration
  • The estimated monthly SIP amount
  • Expected inflation rate (annual) for the years to come
  • Long-term growth rate on investments
  • Once you feed all the above-mentioned information, the calculator will end up giving you the amount you will receive (your SIP returns) after the number of years mentioned. Your net profit will be highlighted as well so that you can estimate your goal fulfilment accordingly.

SIP Calculator: How Does it Work?

SIP calculator is one of the best tools for effective financial planning. While one may select the best SIP mutual funds, monitor the NAVs and SIP returns, however, strategy and planning are very important and this is where the SIP return calculator plays a critical role. Whether one wants to plan to buy a house, car, any asset, plan for retirement, a child's higher education or any other financial goal, the SIP calculator can be used for the same.

(Video) How to create SIP calculator in 2 min | Mutual fund return calculator | Part 1

The SIP calculator requires some basic inputs like investment amount, the frequency of investing (weekly, monthly, quarterly) and period of investing (additional inputs like inflation and expected Market returns will give a more realistic picture). The output from this would be the final amount at maturity and gains made. A similar calculation with a goal in mind can also be made to determine the amount one should invest in a SIP to reach there. The entire calculation of SIP returns is mentioned below. Take a look!

The below calculation is based on the above-mentioned values. Those are-

Monthly Investment: ₹ 1,000

Investment Period: 10 years

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1. How much do you wish to invest in SIP?

The first thing that you need to do is to select an amount you wish to invest monthly. This amount should be chosen considering various factors like- your Financial goals, your current Earnings and your fixed savings. Once you are sure of the amount you can easily start to invest. Moreover, the minimum amount of invest in SIP is as less as INR 500. In the below example, the amount chosen is INR 1,000.

(Video) SIP Returns Excel Calculator| SIP vs Lump Sum Returns| Systematic Investment Planning Explained

SIP Calculator - Calculate SIP Investment Returns | Fincash (2)

2. Tenure of SIP investment?

When making a SIP investment, you should know the number of years you can invest to achieve a certain financial goal. For example: if I started investing at the age of 24 with a goal of buying a new house, I would estimate the time of investment to be 5 years and calculate the SIP returns accordingly. In the below example, the time of investment is chosen as 10 years.

SIP Calculator - Calculate SIP Investment Returns | Fincash (3)

3. Long-term inflation & growth rate of market

Then comes, the average inflation rate and the growth rate of the market in the years to come till you fulfil your goal. As per market resources, the average inflation rate can be taken around 4-5% p.a. and the growth rate can be taken upto 12-14% p.a. However, one can enter their own assumptions also. In this example, the inflation and growth rate are pre-filled as 5% and 14% respectively.

SIP Calculator - Calculate SIP Investment Returns | Fincash (4)

4. SIP investment evaluation

Now, you get the know most awaited result of SIP calculator. Taking the above values into consideration, you get to know the SIP returns you will make in the estimated time and what is the net profit you earn. Here, by investing a total of INR 1,20,000, the total earning is INR 1,94,966. Therefore, the net profit of a person investing INR 1000 monthly for 10 years is INR 74,966 (refer the image below).

SIP Calculator - Calculate SIP Investment Returns | Fincash (5)

SIP Calculator: How to Calculator Goal-Wise Returns?

Investors who wish to fulfil a certain goal, like buying a car or a vehicle, can also calculate the SIP investment returns using our SIP calculator. The process of calculating returns here is quite similar as above. In goal-wise SIP calculation-

You have to choose a particular goal. In the example, the goal chosen is "buy a house".

SIP Calculator - Calculate SIP Investment Returns | Fincash (6)

Enter the expected duration of investment and the amount needs from the SIP investment. Here, the SIP duration is 10 years and the amount needed is INR 80,00,000.

(Video) SIP Calculator: Calculate SIP Returns, SIP Return Calculator, SBI SIP Calculator 2023

SIP Calculator - Calculate SIP Investment Returns | Fincash (7)

A pre-filled screen with estimated returns and growth rate percentage occurs. You can enter your own values as well. In this example, the estimated inflation is 5% and the growth rate is 14%.

SIP Calculator - Calculate SIP Investment Returns | Fincash (8)

Final screen occurs with your result. As per the above-mentioned detail, the SIP investment required every month is INR 68,196 to earn INR 1,30,31,157 approximately.

SIP Calculator - Calculate SIP Investment Returns | Fincash (9)

Benefits of SIP Investment Over Other Investments

SIP or Systematic Investment plan is one of the Best ways to invest money as it offers various benefits. Read below to know-

Effect of compounding

One of the major Benefits of SIP (Systematic Investment Plan) is the Power of Compounding. What is it? With the effect of compounding, the interest earned becomes a part of the base Capital and the subsequent interest is evaluated on the new increased capital value. Unlike simple interest, compounding leads to an exponential growth of money. Also, the compounding effect increases as the investment tenure increases.

Illustration:

ParameterSIP Investment AmountSIP Investment TenureRate of InterestReturns ReceivedTotal Gains
Simple Interest1005 years10%50150
Compound Interest1005 years10%61161

The above table shows that there was a total 7% increase in the output when calculated on the compounding Basis. This might seem a small number now, but as the tenure increases, the numbers seem to increase drastically.

Rupee cost averaging

Rupee cost averaging is a technique used to invest money in the stock market at regular intervals of time (mostly monthly). Since investors sign-up for a long-term investment plan, by virtue of the fact that investing continues during the bad cycles of the stock market, investors are able to "buy low". For lump sum investments, most investors when they see a falling market or a bad phase, they defer their decisions to invest. During these periods a SIP continues its investing and ensures that the investor gets the benefit of a falling market.

How Invest in Systematic Investment Plan?

  1. Open Free Investment Account for Lifetime at Fincash.com

    (Video) IRR: Best way to calculate SIP returns | IRR vs XIRR vs CAGR | Money-Minded Mandeep | LLA

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

Final Tips for Getting Started with SIP Investment

  • Set your financial goals and invest accordingly. The goals should be well-thought and attainable.
  • Decide a timeline. You much be sure of your investment tenure to assure effective financial planning.
  • Determine the amount of investment. Know how much can you invest to achieve your desired financial goals. With a SIP, you need to invest regularly, so make sure you will be able to invest the same amount every month.
  • Make a wise choice. Consult your financial advisor and make a wise investment plan accordingly.

FAQs

How do you calculate return on investment in SIP? ›

Expected rate of return

The SIP calculator will generate a result using the above information and the following formula: Amount invested × ({[1 + Periodic rate of interest] Total number payments – 1} / Periodic rate of interest) × (1 + Periodic rate of interest).

What if I invest $5,000 in SIP for 5 years? ›

According to Post Office RD Calculator, if you invest Rs 5,000 per month for five years the total return on your investment will be Rs 48,740 (with monthly compounding frequency). So the total amount that you will get after five years would be Rs 3,48,740.

What if I invest $5,000 in SIP for 10 years? ›

Calculation of SIP returns

To understand this, let us take an example. A monthly investment of Rs 5,000 for 10 years at an expected rate of return of 12 per cent will earn you Rs 11.61 lakh.

What if I invest 3 000 a month in SIP for 5 years? ›

3000 SIP will become Rs. 1,71, 647 in 5 years. You can start investing in any of the best SIP for 3000 per month or even more. You can consider other SIP schemes but make sure that you go through the reputation of the fund house, NAV, annual returns, and risk factor.

What is the SIP of 10000 per month for 15 years? ›

10,000 over a period of 15 years (at an assumed return of 12%pa) will give a wealth of Rs. 50 lakh and the same amount will become almost Rs. One crore in 20 years.

What is average return in SIP for 10 years? ›

If the SIP was maintained, this would be the case. With a monthly investment of ₹40,000 in a mutual fund plan, the sum would reach ₹1 crore after 10 years and 6 months. According to the findings of Value Research, large-cap funds achieved an average return on investment of 13.36% during ten years.

What if I invest $15,000 a month in SIP for 15 years? ›

Consider investing Rs 15,000 per month for 15 years and earning 15% returns. After 15 years, the total wealth will be Rs 1,00,27,601 (Rs. 1 crore).

What if I invest $50,000 a month in SIP for 20 years? ›

By investing Rs 50,000 per month one time, he could look to accumulate Rs. 19.16 lakhs in twenty years with 20% annualized returns. We have taken a weighted average of the return of each fund after considering the lower 3-year and 5-year returns as the return over the 20 years.

What if I invest $15,000 a month in SIP for 30 years? ›

30 year SIP of Rs 15000 monthly = Rs 4.8 crore.

What if I invest $50,000 in SIP for 5 years? ›

5 year SIP of Rs 50000 monthly = Rs 42 lakh. 10 year SIP of Rs 50000 monthly = Rs 1.1 crore. 15 year SIP of Rs 50000 monthly = Rs 2.5 crore.

What if I invest $10,000 in mutual funds for 5 years? ›

If a SIP of Rs 10,000 had been started in it 5 years ago, today this amount would have been Rs 12.72 lakh. The fund has given an annual return of 30.62 percent in these five years.

What if I invest $10,000 a month in SIP for 30 years? ›

According to tax and investment experts, if an investor invests ₹10,000 per month in mutual fund SIP for 30 years, he or she can accumulate around ₹12.7 crore at the time of maturity provided it has used 10 per cent annual step-up.

What if I invest $10,000 a month in SIP? ›

10,000 monthly in SIP plans has the capability of generating a substantial financial corpus over a long-term period. SIPs work on simple and basic principles that allow investors to create wealth: Invest as early as possible in a SIP so that the investor does not face any financial crunch whilst investing.

What if I invest $5,000 a month in SIP for 20 years? ›

If someone begins a SIP of 5000 per month for a span of 20 years, at 12% assumed annualized rate of return per annum, your total investment in 20 years is Rs. 12 lakh and the accumulated corpus at the end of tenure is close to Rs. 50 lakhs.

What if I invest $20,000 a month for 10 years? ›

If an investor invests 20,000 per month for 10 years at the interest rate of 12%, he will be able to generate INR 47 lakh, i.e., more than double the amount he earned in the first five years. In addition, the earnings in 15 years will double the income that an investor had generated in the first 10 years.

What happens if I invest $1,000 in SIP for 20 years? ›

Can A Small SIP Of ₹1000 Make A Big Difference? Yes! If you're consistent with your ₹1000 SIP every month for 20 years then it has the power to compound and accumulate into a large corpus. This consistency can transform your future financial health.

What happens if I invest $1,000 in SIP for 10 years? ›

SIP investment

FV = Future value or the amount you get at maturity. For example, you invest Rs 1,000 a month in a mutual fund scheme using the systematic investment plan or SIP route. The investment is for 10 years, with an estimated rate of return of 8% per year. You have i = r/100/12 = 8/100/12 = 0.006667.

Is SIP better than FD? ›

Systematic Investment Plan is a better investment option in comparison to Fixed Deposit especially if you consider the flexibility of investment, advantage of diversification, tax benefits, and higher returns. That is why it is better to invest in a systematic investment plan than in fixed deposit.

Is return from SIP taxable? ›

Do we have to pay tax on SIPs in India? Taxes are applicable on the redemption of an investment. You can incur a short-term or long-term capital gains tax on mutual fund returns when you redeem your units. These taxes apply similarly to SIP and lump sum investments.

Is SIP tax free? ›

Choosing the right investment channel not only ensures that you grow your money but also makes sure that you do not loase your profits in taxes. Investing through SIPs offer high returns on your investments and can even claim a deduction of up to Rs. 1.5 lakh under Section 80(C) of The Income Tax Act, 1961.

Can SIP make you millionaire? ›

The power of compounding manifests in SIP when individuals reinvest their earnings and earn further interest on them in due course. It is one of such features of SIP that helps an investor with a limited sum of money to generate wealth over time.

What if I invest $10,000 a month in SIP for 10 years? ›

If an investor invested Rs. 10,000 as SIP for a decade, the total return would be Rs. 21.66 lacs.

How to make 1 crore in 10 years in mutual funds? ›

It is also possible to accumulate one crore in ten years by saving and investing INR 40,000-45000 per month in an aggressive portfolio. If the SIP amount is increased by 5% annually and the interest rate increases by 12%, it would yield ₹1 crore taking ten years and six months to implement and benefit from this method.

How to make 1 crore in 20 years? ›

Assuming an annual return of 12%, you need to invest Rs 10,000 every month to create a corpus of Rs 1 crore in 20 years. However, don't be complacent.

How to make 1 crore in 15 years in mutual funds? ›

Under this rule, the first 15 stands for the monthly investment that you need to make. That is, your monthly SIP amount will be Rs. 15,000. – The second one stands for your investment tenure of 15 years i.e., to achieve the mentioned goal of 1 crore, you need to invest 15000 every month for 15 years.

What if I invest $500 a month for 15 years? ›

Invest $500 a month for 15 years and get to $250,000

Saving $500 per month equates to $6,000 a year and $90,000 in 15 years. Investing your savings in the stock market will grow that little fortune into big fortune.

What if I invest $600 a month for 10 years? ›

If you'd invested $600 in a lump sum and allowed it to grow for 10 years at 10.3% a year, you'd have almost exactly $1,600. Stock market returns are never guaranteed, of course. But the longer your holding period is, the higher your odds of success are.

How to make 1 crore by investing 5000 per month? ›

So, in the first year you will have an SIP of Rs 5,000 per month, in the second year it will be Rs 5,500 (Rs 5,000+10 per cent of Rs 5,000), in the third year it will be Rs 6,050 (Rs 5,500 + 10 per cent of Rs 5,500) and so on. This will help you to meet your target corpus of Rs 1 core in 21 years. See table below.

How much to invest to make $100,000 in 10 years? ›

Our findings. We determined that if an investor achieves a 3% annual return on his or her assets, he or she would need to invest $710 each month for ten years to reach $100,000 with a $1,000 beginning amount. By the year 2031, the investment would be worth a total of $100,566.

How much to invest per month to become a millionaire in 5 years? ›

Let's say you want to become a millionaire in five years. If you're starting from scratch, online millionaire calculators (which return a variety of results given the same inputs) estimate that you'll need to save anywhere from $13,000 to $15,500 a month and invest it wisely enough to earn an average of 10% a year.

How much should I invest in SIP to get 50 lakhs in 10 years? ›

Rs 40,000 SIP: It will take 6 years and 9 months to get Rs 50 lakh from Mutual Fund SIP if the annualised rate of return is 12%. Rs 50,000 SIP: It will take 5 years and 10 months to get Rs 50 lakh from Mutual Fund SIP if the annualised rate of return is 12%.

How much should I invest a month to get 1 million in 20 years? ›

If you wait until retirement is 20 years away, you will need to save $1,382 per month to hit the million-dollar mark, assuming a 10% return. At 6% you will need to save $2,195 per month!

How much to invest in SIP to get 10 crore in 10 years? ›

If you you look at the calculation even if one does a SIP every month for 10 years at a 12 per cent CAGR return, the SIP amount would be Rs 4.35 lakh per month and for this, he has to continue the SIP for the next 10 years.”

How much to invest in SIP to get 10 crore in 20 years? ›

10Crs in 20 years, you will need to have SIPs of Rs. 1.01 lakh per month (assuming returns of 12% pa) in equity mutual funds.

What if I invest $10,000 every month in mutual funds? ›

10,000 in mutual funds can generate substantial returns over a long investment period. The returns will be dependent on various factors like the choice of fund, market trends, and the performance of the particular scheme.

How much will I have if I invest $500 a month for 10 years? ›

If you invested $500 a month for 10 years and earned a 4% rate of return, you'd have $73,625 today. If you invested $500 a month for 10 years and earned a 6% rate of return, you'd have $81,940 today.

What is 15x15x15 rule in mutual fund? ›

More About the 15x15x15 Rule for Mutual Fund Investments

It says that if you invest Rs. 15,000 per month via SIP in an equity mutual fund that is capable of generating an average return of 15%, you are most likely to become a crorepati in 15 years (as stated in the example above).

What is the 5% rule mutual fund? ›

In investment, the five percent rule is a philosophy that says an investor should not allocate more than five percent of their portfolio funds into one security or investment. The rule also referred to as FINRA 5% policy, applies to transactions like riskless transactions and proceed sales.

How much to invest monthly to reach $1 million in 10 years? ›

In order to hit your goal of $1 million in 10 years, SmartAsset's savings calculator estimates that you would need to save around $7,900 per month. This is if you're just putting your money into a high-yield savings account with an average annual percentage yield (APY) of 1.10%.

What if I invest 20,000 a month in SIP for 15 years? ›

10 year SIP of Rs 20000 monthly = Rs 47 lakh. 15 year SIP of Rs 20000 monthly = Rs 1 crore. 20 year SIP of Rs 20000 monthly = Rs 1.9 crore. 25 year SIP of Rs 20000 monthly = Rs 3.5 crore.

What is expected return in SIP after 20 years? ›

5 Crs in 20 years, investors should start the SIP of Rs. 50,500pm assuming a return of 12% pa. If the investor is ready to step up SIP amount every year then he can create this corpus by starting the SIP amount by Rs. 27,000 per annum and increasing this SIP amount every year by 10%.

What is the return of SIP after 10 years? ›

If the SIP was maintained, this would be the case. With a monthly investment of ₹40,000 in a mutual fund plan, the sum would reach ₹1 crore after 10 years and 6 months. According to the findings of Value Research, large-cap funds achieved an average return on investment of 13.36% during ten years.

What is return on investment in SIP? ›

In an SIP, a predetermined amount is invested in the mutual fund every month. In a lump sum deposit, the amount invested is a constant figure on which the return is calculated. The mutual fund's units are bought at a particular NAV with lump-sum investments while the NAV keeps fluctuating with SIP investments.

What if I invest $2,000 per month in SIP? ›

FV = P [ (1+i)^n-1 ] * (1+i)/iFV = Future value or the amount you get at maturity. Take an example where you invest Rs 2,000 per month for a tenure of 24 months. You expect a 12% annual rate of return (r). You have i = r/100/12 or 0.01.

What if I invest $10,000 in SIP? ›

If an investor invested Rs. 10,000 as SIP for a decade, the total return would be Rs. 21.66 lacs. This mutual fund has provided around 25.5% annual return in the past two years, and its absolute return has been 57.6%.

Is 15% return possible from SIP? ›

15,000 per month via SIP in an equity mutual fund that is capable of generating an average return of 15%, you are most likely to become a crorepati in 15 years (as stated in the example above). Lesson: The earlier you begin investing this way, the more wealth you can accumulate over time.

Is SIP return guaranteed? ›

However, there is no guarantee or assurance of returns by investing in a SIP. This is because a mutual fund scheme invests in a basket of securities in different proportions. For example, a large-cap fund could have 30-40 stocks in its portfolio.

What is the average SIP return per year? ›

SIP interest rates for various mutual funds may vary. On an average, for large cap equities, a return of 12-18% can be expected whereas from mid-cap equities, a return of 14-17% is expected. However, in case of a long-term debt-based mutual fund, one can expect a return of 6 – 9 % p.a.

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