SIP Calculator - Calculate Your Mutual Fund Returns | FTaxCo

SIP Calculator with Interactive Charts

Investment Details

Monthly SIP Amount (₹)

Investment Period (Years)

Expected Annual Return (%)

Investment Summary

Total Invested

₹6,00,000

Estimated Returns

₹9,34,463

Maturity Value

₹15,34,463

SIP Growth Over Time

Investment Breakdown

Compare Different Scenarios

₹5,000

Monthly Investment

156%

Wealth Gain

10

Investment Years

Understanding SIP Calculator

Prospective investors can think that SIPs and mutual funds are the same. However, SIPs are merely a method of investing in mutual funds, the other method being a lump sum. A SIP calculator is a tool that helps you determine the returns you can avail when parking your funds in such investment tools.

Systematic Investment Plan or SIP is a process of investing a fixed sum of money in mutual funds at regular intervals. SIPs usually allow you to invest weekly, quarterly, or monthly.

How SIP Calculator Works

A SIP calculator is a simple tool that allows individuals to get an idea of the returns on their mutual fund investments made through SIP. SIP investments in mutual funds have become one of the most popular investment options for millennials lately.

These mutual fund SIP calculators are designed to give potential investors an estimate on their mutual fund investments. However, the actual returns offered by a mutual fund scheme varies depending on various factors. The SIP calculator does not provide clarification for the exit load and expense ratio (if any).

SIP Formula Explained

A SIP plan calculator works on the following formula:

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

Where:
M = Maturity amount
P = Principal amount (Monthly SIP)
i = Monthly rate of return
n = Number of monthly payments

Monthly Return Calculation

A common mistake is to simply divide the annual return by 12. For example, taking 12% annual return as 12 ÷ 12 = 1% per month is not correct because returns are compounded.

The right way is to convert the annual return into a monthly return by using the following formula:

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

So, for an annual return of 12%, the effective monthly return comes to about 0.95%, not 1%.

Example Calculation:

Take for example you want to invest Rs. 1,000 per month for 12 months at an annual rate of 12%.

Step 1: Calculate monthly return = (1 + 0.12)^(1/12) - 1 = 0.0095 or 0.95%

Step 2: Apply SIP formula = 1,000 × ({[1 + 0.0095]^12 – 1} / 0.0095) × (1 + 0.0095)

Result: ≈ ₹12,766 in a year

Benefits of Using FTaxCo SIP Calculator

• Quick Estimation: Get instant calculations for your investment plans
• Visual Charts: Interactive graphs show your investment growth
• Scenario Comparison: Compare different return rates and time periods
• Goal Planning: Plan your investments to reach specific financial goals
• User-Friendly Interface: Easy-to-use sliders and real-time updates

Why Choose SIP Over Lump Sum?

SIPs are a more lucrative mode of investing funds compared to a lump sum amount according to several mutual fund experts. It helps you become financially disciplined and create a habit of savings that can benefit you in the future.

• Rupee Cost Averaging: Reduces the impact of market volatility
• Disciplined Investing: Builds a regular investment habit
• Flexibility: Start with as low as ₹500 per month
• Power of Compounding: Your money grows exponentially over time

How to Use FTaxCo SIP Calculator

You can use the SIP amount calculator from FTaxCo within a few clicks:

1. Enter the monthly invested amount (the amount for which you want to start the SIP)
2. Select the number of years for which you want to stay invested
3. Input the expected rate of return
4. View real-time calculations and interactive charts
5. Compare different scenarios using our scenario buttons

As soon as you input the values, the calculator will show you the estimated amount you can avail after your investment tenure is complete, along with visual representations of your investment growth.

Important Considerations

Please note that the rate of interest on a SIP will differ as per market conditions. It may increase or decrease, which will change the estimated returns. A systematic investment plan calculator ensures that your savings portfolio is as per your requirements and financial needs.

Disclaimer: The FTaxCo SIP calculator provides estimates based on assumed growth rates. Actual returns may vary depending on market conditions, fund performance, and other factors. Past performance does not guarantee future results.

About FTaxCo

FTaxCo offers comprehensive financial solutions including tax planning, investment guidance, and wealth management services. Our SIP calculator is designed to help you make informed investment decisions and plan your financial future effectively.