SIP Calculator

What is SIP Calculator?

SIP calculator is a virtual tool that enables investors to calculate the estimated returns on their investment in mutual funds overtime. The mutual fund SIP calculator online is free through which any investors can  know how their investment will benefit them over time. To use the SIP calculator, investors just need to enter their investment amount, SIP frequency or SIP investment tenure, and expected return rate.

The SIP calculator equipped with its calculation formula estimates the return amount of your investment in a mutual fund.

You must know that the SIP calculator does not only refer to investment through an SIP (Systematic Investment Plan) but also includes lump sum investment. In a mutual fund, investors can invest in two ways: first, through regular investment called SIP, and second, through one-time investment called “lump-sum”.

SIP calculator enables you to calculate the returns from both lumpsum and SIP investments.

How SIP Calculator Works?

The SIP calculator works with a formula that requires some key inputs, including the SIP investment/one-time investment amount, yearly returns, and investment period. Afterwards, it shows the result of total earnings in contrast with your total investment.

With it, you can check the estimated returns of various SIP funds, compare them, and choose the best SIP fund for your investment. Moreover, you can use the SIP calculator to make investment strategies for higher and considerable returns.

For example:

You want to start a monthly SIP with the amount of 5,000/- for 12 years at a 12% rate of return. The total amount you will invest is 6,00,000/-. With the calculator, you can estimate the maturity amount of your investment.
For  5000/- monthly investment the total earning will be  11,61,695/- . The amount you’ll earn extra from your investment will be  5,61,695/-.
Now, If you are unsatisfied with the returns, you can decide whether to increase the investment period or find another SIP with a higher return.

What is the Formula of SIP Calculator?

The formula of SIP calculator for calculating the maturity amount of a SIP investment is:
Maturity = p × ({[1 + k]^n – 1} / k) × (1 + k).
Where:

• Maturity is the amount you receive at the end of the investment period.
• p is the amount you invest at regular intervals (the SIP instalment amount).
• n is the number of payments you have made (the total number of SIP instalments).
• k is the periodic rate of interest (the rate at which your investment grows)

You can use this SIP calculator formula to even do the manual calculation.  For example:

• p=  1000/- (the amount you invest on regular interval)
• n = 12 months (number of time you invested money)
• Interest rate = 12% (annual)
• k = 12%/12 = 0.01 (periodic interest rate)
• M = p × ({[1 + k]^n – 1} / k) × (1 + k)
• M = 1000× ({[1 +  0.01]^12 – 1} /  0.01) × (1 +  0.01)
• M =  1000 X ({[1.01]^12– 1} /  0.01) × (1.01)
• M =  1000 X ({ 1.126825– 1} /  0.01) × (1.01)
• M =  1000 X (0.126825/ 0.01) × (1.01)
• M= 1000  X 12.6825 × 1.01
• M = 12809

So, the maturity amount will be ₹12,809/- You can reverify the result with the SIP Calculator.

Which is the Best SIP Calculator?

Gopocket offers a SIP calculator with lump sum amount. With it, you can calculate the return on an SIP investment, a one-time investment, or an investment that includes both lump sum and SIP.

Gopocket online SIP calculator offers a separate calculator tool for each calculation.

• SIP Investment Calculator: This calculator allows you to calculate the return from regular contributions to a mutual fund through the Systematic Investment Plan. For instance, an investment of  1000/- each month. To calculate the estimated return for this investment, you are required to enter the SIP amount, expected return rate, and time period of investment.
• Lump Sum SIP Calculator: The LumpSum calculator helps you estimate the returns froma one-time investment in a mutual fund. For example, you have invested  50,000/- in a mutual fund with a lump sum payment method. To calculate the estimated return for this investment, you must enter the lump sum amount, expected return rate, and investment period.
• SIP and Lump Sum Calculator: This calculator calculates the returns from SIP and lumpsum investments. For example, you have invested  50,000/- through one time, lump sum investment and continued the investment in the same fund with 1000/- per month. To calculate the return from such an investment, you must enter the SIP amount, lump sum amount, expected return rate, and time period of investment.

You must understand that the calculator gives you a rough idea of the expected returns and doesn't guarantee the same maturity amount for your SIP investment. The end amount of your investment in a mutual fund may vary due to external factors like market fluctuation, inflation, etc.

How to Calculate SIP Returns in Mutual Funds with the Best SIP Calculator- GoPocket

You can conveniently use the SIP amount calculator from GoPocket to estimate the SIP returns. You can follow these steps to learn how SIP is calculated within a few clicks.

• Step 1: Locate SIP calculator with the footer navigation.
• Step 2: Choose one calculator tool from the SIP calculator - the SIP calculator for regular investment, the SIP calculator for one-time investment, or the SIP calculator with lump sum and monthly investment combined.
• Step 3: Enter the monthly investment amount and the expected return rate to get an estimated return for your investment.

As soon as you input the value for each field, the calculator will show you the approximate amount you will receive after completing the investment tenure.

Benefits of using GoPocket SIP calculator

There are several benefits of using SIP calculators. Here are some of the key benefits.

• Easy Calculation - With the SIP calculator, you can easily calculate the estimated return in less time, which is very time consuming with manual methods.
• Return Comparison - With the SIP calculator, you can calculate the returns of various funds and compare them to pick the best mutual fund for your investment.
• Informed Decision-Making - When you have sufficient data, you can make informed decisions and strategies for your financial investments.

How Do You Calculate the Rate of Return in SIP?

There are various types of SIP mutual fund investments, in which you can invest with SIP or lumpsum according to your risk-bearing appetite or preference. The return rate of an SIP depends on the type of mutual fund you choose. Using the calculator, you can add the expected return rate by checking the fund information.

Different types of SIP investment and their details:

FAQs for SIP