SIP Calculator

Investments play an important role in financial planning as they not only help an individual in reaching financial milestones but also provides financial security. Amongst various investment types, the Systematic Investment Plan (SIP) is an investment option that allows investors to make small regular payments at periodic intervals of time. SIP is a method of investing in mutual funds. 

Unlike other investment options, a SIP does not require a lump sum amount to invest one time. It allows investors to make investments according to their convenient amount monthly. Once the investor decides the investment amount, investment period, and the profits generated, they can proceed with the structured approach of the investment.

Some factors that make SIP better than a lump sum investment are,

• Can invest a fixed amount periodically
• Can invest in smaller amounts with respect to the financial situation
• Low-risk appetite
• Builds the habit of investing in an investor
• The investor can know the approximate returns on the investment

Though SIP is a type of investment that every investor can take advantage of, it is recommended for,

• An individual looking for a long-term investment plan
• An individual who is new to investments
• An individual who can invest in smaller fixed amounts
• An individual who is looking for a low-risk profile investment

A SIP Calculator (Mutual Funds Calculator) helps in determining the expected returns that would be generated on your investment after a certain period of time taking profit rates into consideration (if applicable).

It will help you understand various factors related to your investment, like,

• How much do you need to invest every month
• How much profit you will be making on the investment
• Impact of inflation on your investment amount
• How much investment returns you will have at the end of the tenure
• If you have a targeted investment amount, then how much you need to invest monthly and for how long

When you have a clear understanding of all these factors then you can deal with your investment smoothly without any complications. You can compare different SIP investment providers and pick the right one according to your investment goal.

This online calculator makes your work simple. It works according to your requirements.

1. If you are sure how much you can invest every month then select “I want to Invest” and proceed along with the following steps:

• Enter the amount of money you can put into the investment monthly
• Enter the investment period
• Enter the expected annual returns in percentage
• Select “Yes” if you would like to take inflation into consideration which predicting the returns and enter the inflation rate

You can understand how much profit you will be making on your investment along with the total investment returns.

2. If you have a particular goal about the investment amount then select “Goal-based Investment”

• Enter the targeted amount
• Enter the investment period
• Enter the expected annual returns in percentage
• Select “Yes” if you would like to take inflation into consideration which predicting the returns and enter the inflation rate

You can determine how much you need to invest every month in order to achieve your targeted amount of investment.