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Use the SIP calculator from Bajaj Finance to estimate future returns and the total wealth you can accumulate based on your planned SIP amount.
Calculate the future value of your SIP investment
Monthly SIP
Lumpsum
Investment amount
₹ 100 ₹ 1000000
Tenure
Year
1 Year 30 Year
Expected returns
%
1 % 30 %
Investment amount ( in Rs.)
₹ 1000 ₹ 50000
Tenure (in years)
Year
1 Year 30 Year
Expected return (in %)
%
1 % 30 %
₹
Future Value
₹
Total returns
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Disclaimer:
Mutual Fund SIP calculator may provide potential investors an approximate estimate on the maturity amount of the monthly SIP, purely based on mathematical calculation of the projected annual return rate selected by investor. However, such calculation does not factor the actual performance by the Asset Management Company (AMC) and should not be treated as any advice or assurance about the actual return of investment. Mutual Funds do not have a fixed rate of return and it is not possible to predict the rate of return. Please note that theSIP calculatorare for illustrations only and do notrepresent actual returnswhich may vary depending on various factors including but not limited to actual performance, expense ratio, taxation, exit load (if any), etc.
SIP Calculator - Systematic Investment Plan Calculator
Several investors believe systematic investment plans (or SIPs) and mutual funds are the same. However, SIP is just one method of investing in mutual funds, with the other method being making a lump sum investment. An SIP involves investing a fixed amount of money into mutual funds at regular intervals, such as weekly, monthly, or quarterly. Usually, investors use an SIP calculator, a useful tool, to calculate the returns they can expect from their SIP investments. This calculator helps you understand how much your investments might grow over time when you invest through SIPs.
Key features and additional values of the SIP calculator
- Retirement planning: Determine the amount of money required to guarantee a comfortable retirement.
- Women-specific financial planning: Develop personalised investment strategies specifically designed for women. These strategies focus exclusively on their distinct financial goals and challenges.
- Children’s education and future: Plan and save money to cover your children’s education and other future expenses.
- Future financial growth: Estimate how much your investments will grow over time to meet your long-term financial goals.
- Step-up SIP for progressive growth: Gradually increase the amount you invest in your SIP. This helps you achieve higher returns and keep pace with income growth and inflation.
- Risk assessment: Evaluate how much risk you are comfortable taking with your investments. Such a risk assessment helps in choosing the right mutual fund schemes.
- Tax efficiency:Calculate the tax implications of your investments and find ways to optimise your investments for tax savings.
- Goal-based planning: Align your investments with specific financial goals, such as buying a house, starting a business, or travelling.
What is a SIP calculator?
A SIP calculator is an online tool designed to simplify the process of calculating the returns on your mutual fund investment through SIP. This mutual fund sipcalculator stands out for its ability to estimate the future value of your mutual fund investments through SIPs, considering an assumed rate of return over a specified period. Given the complexity of manually computing returns from SIPs since SIPs usually allow you to invest weekly, quarterly, or monthly —owing to the varying holding periods for each monthly installment—the SIP calculator proves invaluable. It precisely calculates the returns for each contribution, factoring in the different durations each has been invested.
The primary function of the Systematic Investment Plan calculator is to break down the future value of your SIP investment into two key figures: the estimated returns on your investment and the total principal amount. You can also calculate the future value of your lumpsum and step up SIP investments in mutual funds using the Lumpsum Calculator, and Step Up SIP calculator on Bajaj Finserv platform.
Advantages of mutual fund SIP calculator
The advantages of the mutual fund SIP calculator lie in its ability to provide investors with a clear understanding of their potential investment outcomes. This tool is invaluable for those looking to navigate the complex world of investments with ease.
Analyse compounding effect:
Mutual funds are known for their ability to generate potentially good returns using power of compounding. The calculator helps investors to assess and compare the compounding returns of different mutual fund schemes.
Guidance for strategic investments:
The calculator provides guidance on diversification, optimal investment amounts, and durations, helping investors make well-informed decisions in line with their financial goals and risk tolerance.
Ease of use with immediate outcomes:
The calculator's interface allows investors to easily perform calculations and receive instant results, helping them assess potential investment returns without complex math.
Access to investments:
The Mutual Fund SIP Calculator is accessible from anywhere at any time, provided there is internet connectivity.
Reliability:
Bajaj Finance supports the SIP calculator, ensuring reliable results. Investors can use this tool to make informed decisions, potentially leading to more successful outcomes.
How can a SIP calculator help you?
The Systematic Investment Plan (SIP) calculator is a potent tool designed to assist investors in visualising the potential growth of their investments over time. By inputting a few key details—such as the weekly, quarterly, or monthly SIP amount, the investment period, and the expected annual rate of return—the calculator provides a detailed estimate forecast. The SIP calculator online will generate the future value of your investment, along with the total returns and growth percentage experienced throughout the specified duration. This bifurcation helps investors understand not just the future value of their investment but also how much of that value comes from the returns on their initial principal. It serves as a roadmap for those looking to build wealth systematically through disciplined investing.
Moreover, tools like the SIP return calculator simplify the process of calculating SIP returns. They are easy to use and benefit both beginners and experienced investors. By using these tools, you can try out different monthly investment amounts, investment periods, and expected return rates to see how these factors affect the growth of your investments. The information so gained allows you to adjust your investment plans to better meet your financial goals. For this purpose, most SIP calculators will help you:
Decide how much money you want to invest.
Calculate the total amount you have invested over time.
Get an estimate of the returns you can expect from your investments.
How does the SIP returns calculator work?
TheSystematic Investment Plan (SIP) Return Calculator is a dynamic tool designed to simplify the investment planning process. It allows investors to easily estimate the future value of their SIP investments by inputting three key pieces of information: the monthly investment amount, the duration of the investment in months or years, and the expected rate of return. This monthly SIP calculator is particularly useful for investors looking to understand how their investments could grow over time, providing a clear picture of potential financial gains without the need for complex manual calculations. By offering a straightforward way to visualise the impact of regular investments, the calculator helps users tailor their investment strategies to meet their long-term financial objectives.
At the heart of this process is a formula that accurately captures the essence of SIP investments, factoring in the power of compounding.
The SIP return calculator uses the following formula
FV = PV × ([{(1 + R)^N} – 1)]/ R) × (1 + R)
How to calculate SIP returns?
To calculate SIP returns effectively, understanding the mathematical formula and its application is crucial. This process not only helps estimate SIP returns but also provides insights into the future value of your investment. Let's break down the calculation method:
SIP calculators use a specific formula to estimate SIP returns, enabling you to calculate SIP returns accurately. This formula is:
FV = PV × ([{(1 + R)^N} – 1)]/ R) × (1 + R)
Here is what each term represents:
FV (Future Value): This is the amount of money a principal sum of money will grow to over time with interest.
PV (Principal Value): This is the initial amount of money invested or loaned.
R (Monthly Interest Rate): R is calculated using the formula, [R= (1 + CAGR) ^ (1/12) - 1] where ‘CAGR’ represents the Compound Annual Growth Rate.
N: This represents how often the interest is compounded within a year. For example, if interest is compounded monthly, n would be 12.
t (Investment Tenure in Years): This is the time period for which the money is invested or borrowed, expressed in years.
Suppose you plan to invest Rs. 1,000 per month for a year at an annual interest rate of 12%.
The monthly rate of return would be 12%/12 = 1% = 0.01.
Using the formula you would get approximately Rs. 12,809 at the end of the year.
Keep in mind that the interest rate on a SIP can vary with market conditions, which will affect the estimated returns.
Example of using SIP calculator to calculate SIP Returns
If you invest Rs. 5,000 per month in a systematic investment plan (SIP). If you have chosen an SIP with an average return of 12% per year. Using an SIP calculator, you can determine the final amount and the returns you will get in 5 year with these simple steps:
Enter Rs. 5,000 in the field labelled ‘Investment Amount’.
Enter the expected rate of return as 12%.
Enter the duration as 5 years.
The SIP calculator will show that after investing Rs. 5,000 per month for 5 years at a 12% annual return, you will receive a final amount of Rs. 4,12,432. Be aware that the total amount you invested over 5 years is Rs. 3,00,000. If you are not satisfied with this final amount, you can either choose to invest for a longer period or look for a SIP that offers a higher return.
How to use Bajaj Finance's systematic investment plan calculator?
Using the Systematic Investment Plan Calculator Online, like the one offered by Bajaj Finance, simplifies the process of forecasting your investment growth in mutual funds. Below are step-by-step guides on how to use this SIP Calculator for calculating both your target amount and current investment amount, emphasising its functionality as a Mutual Fund SIP Calculator.
Steps to use SIP calculator for the target amount
- Begin by entering the investment amount, which should fall within the range of Rs. 100 to Rs. 10,00,000.
- Next, select the tenure of your investment, with options spanning from a minimum of one year to a maximum of 30 years.
- Then, choose the expected return rate, ranging from one percent to 30 percent.
- After inputting your details, the calculator will provide you with the future value of your investment, along with the percentage growth and total returns accrued over the chosen tenure.
Steps to use SIP calculator for current investment amount
- Decide on investment type: Select whether you wish to invest through monthly SIPs, quarterly payments, or a lump sum, depending on what's most convenient and in line with your financial objectives.
- Choose investment amount: Determine your investment amount based on your financial capacity, with the range again being Rs. 100 to Rs. 1 crore.
- Investment tenure: Opti for a tenure that matches your investment strategy, available from 1 to 30 years, providing ample flexibility for long-term planning.
- Interest rate selection: Customise your investment by choosing an interest rate that meets your expectations for returns and aligns with your risk profile, from 1% to 30%.
Utilising the SIP Calculator provided by Bajaj Finserv you will receive detailed estimates of your total investment amount, expected returns, and total wealth accumulation. This process demystifies investment planning, making it accessible and manageable for investors at any stage of their financial journey.
Frequently asked questions
Can I estimate my SIP return online?
Yes, estimating SIP returns online is quite straightforward with the help of a SIP calculator. By entering details such as the monthly investment amount, investment period, and expected rate of return, these online tools provide a detailed forecast of potential investment growth.
How much is Rs. 5,000 for 5 years in SIP?
If you invest Rs. 5,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 1,12,432 and the estimate future value of your investment will be Rs. 4,12,431.
What if I invest Rs. 3,000 a month in SIP for 5 years?
If you invest Rs. 3,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 67,459 and the estimate future value of your investment will be Rs. 2,47,459.
How much is Rs. 1,000 for 5 years in SIP?
If you invest Rs. 1,000 per month through SIP for 5 years, assuming 10% return. The estimate total returns will be Rs. 18,082 and the estimate future value of your investment will be Rs. 78,082.
How much is Rs. 4,000 per month in SIP for 10 years?
If you invest Rs. 4,000 per month through SIP for 5 years, assuming 11% return. The estimate total returns will be Rs. 80,988 and the estimate future value of your investment will be Rs. 3,20,988.
What is the Interest Rate of SIP?
SIPs don't have a fixed interest rate as they invest in mutual funds, whose returns are subject to market fluctuations. The 'interest rate' in the context of SIPs refers to the expected rate of return based on the historical performance of the mutual fund.
How much can I invest in a SIP?
Investment in a SIP can start from as low as Rs. 500 per month, with no maximum limit. This makes SIPs accessible to investors with varying financial capacities, allowing them to invest according to their budget and financial goals.
What is the maximum tenure of a SIP?
There's no cap on how long you can maintain a Systematic Investment Plan (SIP); it's open-ended, with a minimum tenure of three years. However, starting October 1, 2023, the National Automated Clearing House (NACH) imposes a maximum tenure of 30 years from the date of issuance. Additionally, the mandate will require specifying the final collection date (end-date).
Are SIP investments tax-free?
While the returns from SIP investments are not tax-free, certain equity-oriented SIPs may qualify for tax benefits under specific conditions, such as the Equity Linked Savings Scheme (ELSS) category.
Is SIP calculator accurate?
No, SIP calculators only provide estimates based on inputs such as investment amount, duration, and expected returns. However, actual returns may vary due to market fluctuations and other factors.
How can an SIP return calculator help investors?
An SIP return calculator helps investors by providing an estimate of the future value of their investments. It takes into account the monthly investment amount, tenure, and expected rate of return to calculate the maturity amount, enabling investors to plan their finances effectively.
What details are required to use a SIP calculator online?
To use a SIP calculator online, you will need to provide some essential information:
- Investment amount: The initial amount you plan to invest every time you make SIP contributions.
- SIP frequency: How often will you make your investments—monthly, quarterly, or annually?
- Expected return rate: The annual growth rate at which you expect your investments to grow.
- Investment tenure: The total period for which you plan to invest.
After entering these details into the calculator, it will estimate the future value of your investments. It will show you how much money you can expect to earn through your SIP.
What is the importance of the expected rate of return in an SIP calculator?
The expected rate of return is a crucial input in an SIP calculator as it influences the estimated future value of the investment. It helps investors understand potential returns, allowing them to compare different investment options and make informed decisions based on their risk appetite and financial goals.
What causes fluctuations in SIP interest rates?
Usually, SIP interest rates fluctuate due to market conditions. They majorly depend on the performance of the SIP mutual fund. Furthermore, factors like changes in interest rates due to inflation, global financial events, and government regulations also influence these rates.
Can I modify my SIP amount?
Yes, you can modify your SIP amount at your convenience. Most financial institutions and investment platforms allow investors to increase or decrease their SIP contributions. This flexibility helps investors adjust their investments based on changes in their financial situation or investment goals.
Are there any upper limits to SIP investments?
Generally, there are no upper limits for SIP investments. Investors can choose to invest any amount that suits their financial capacity and goals. However, each mutual fund scheme may require a minimum investment amount. Hence, it is always advisable to check the specific terms and conditions of the mutual fund you are investing in.
Can I miss a SIP?
Missing one SIP installment usually does not attract any penalties. However, it impacts the compounding benefit of your investments. When you miss multiple installments, there is a chance your SIP may get discontinued, and you will need to restart it. Hence, it is always advisable to inform your fund house in advance if you foresee any issues in maintaining regular contributions.
How to shorten SIP duration?
To shorten the duration of your SIP, you need to contact your fund house or use their online platform to amend the SIP tenure. Usually, in this process, the end date of your SIP plan changes. Also, shortening the duration means you will stop investing earlier than initially planned. This can affect your overall investment goals and returns.
Can I renew a SIP?
Yes, you can renew a systematic investment plan. Usually, SIPs have a predefined tenure, but once this period ends, you can choose to renew or extend the SIP for a further duration.
Can I pause my investments in a SIP?
Yes, you can pause your investments in a SIP as they do not have any lock-in period. Most mutual fund houses offer a “SIP pause facility”. This allows you to temporarily halt your investments for a specific period. During this pause, no funds will be deducted from your account, and you can resume the SIP later without any penalties.
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Disclaimer:
Bajaj Finance Limited ("BFL") is registered with the Association of Mutual Funds in India ("AMFI") as a distributor of third party Mutual Funds (shortly referred as 'Mutual Funds) with ARN No. 90319
BFL does NOT:
(i) provide investment advisory services in any manner or form:
(ii) carry customized/personalized suitability assessment:
(iii) carry independent research or analysis, including on any Mutual Fund schemes or other investments; and provide any guarantee of return on investment.
In addition to displaying the Mutual fund products of Asset Management Companies, some general information is sourced from third parties, is also displayed on As-is basis, which should NOT be construed as any solicitation or attempt to effect transactions in securities or the rendering any investment advice. Mutual Funds are subject to market risks, including loss of principal amount and Investor should read all Scheme/Offer related documents carefully. The NAV of units issued under the Schemes of mutual funds can go up or down depending on the factors and forces affecting capital markets and may also be affected by changes in the general level of interest rates. The NAV of the units issued under the scheme may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities forming part of the Mutual Fund. The NAV will inter-alia be exposed to Price/Interest Rate Risk and Credit Risk. Past performance of any scheme of the Mutual fund do not indicate the future performance of the Schemes of the Mutual Fund. BFL shall not be responsible or liable for any loss or shortfall incurred by the investors. There may be other/better alternatives to the investment avenues displayed by BFL. Hence, the final investment decision shall at all times exclusively remain with the investor alone and BFL shall not be liable or responsible for any consequences thereof.
Investment by a person residing outside the territorial jurisdiction of India is not acceptable nor permitted.
Disclaimer on Risk-O-Meter:
Investors are advised before investing to evaluate a scheme not only on the basis of the Product labeling (including the Riskometer) but also on other quantitative and qualitative factors such as performance, portfolio, fund managers, asset manager, etc, and shall also consult their Professional advisors, if they are unsure about the suitability of the scheme before investing.
