SIP Calculator - Calculate Returns on Mutual Fund Investment (2024)

I want to invest monthly

For a period of 90

years

Growth Rate

%

SIP calculator is an online tool that calculates the return on your mutual fund investment through SIP, based on an estimated rate of return and the future value of your investment after a certain number of years.

The manual computation can be slightly labor-intensive since SIPs typically involve a monthly payment. Since the holding period for each monthly contribution would be different at any given point in time, the returns for each of these payments will differ as well.

The Systematic Investment Plan calculator essentially gives investors a bifurcation of the future value of the SIP investment with two figures: the estimated return they can expect to make on the investment and the principal.

Therefore, you can use the SIP return calculator to get an overview of how your investment will grow over a certain holding period, assuming a certain rate of return and SIP contribution.

You can also factor in the effect of inflation when using the SIP calculator online, though not explicitly. You could do this by manually figuring out the nominal rate of return you’d expect to earn from your investment, based on your target real rate of return and the prevailing rate of inflation. Then, you just need to use the manually computed rate as your rate of return and enter it into the calculator to start investing in mutual funds.

Let us look at some examples to figure out how this calculator can help you.

While you don’t need to do the computations manually since you can always find a SIP calculator online, it’s always good to understand where these numbers come from so you feel more confident about your investment strategy.

SIP calculators use the following SIP formula:
FV = P x {[(1 + r)n – 1] ÷ r} x (1 + r)

Where:

For instance, if you want to calculate the FV for a SIP with ₹1,000 monthly contributions for two years and an expected rate of return of 12%, this is what the formula would look like for you:

FV = 1000 x {[(1 + 0.01)24 – 1] ÷ 0.01} x (1 + 0.01)

Note that the r is 0.01 since our expected rate of return is 12% per annum, which translates to 1% per month.

If you know how much you want to invest in Mutual Funds every month, you can use the ET Money SIP Calculator to estimate the potential future value of your monthly investments.

To use this functionality, you need to provide 3 key inputs:

Option 1. If You Know Your Investment Amount

If you know how much you want to invest in Mutual Funds every month, you can use the ET Money SIP Calculator to estimate the potential future value of your monthly investments. To use this functionality, you need to enter the following inputs:

• Monthly Investment Amount - This is the monthly SIP amount you plan to invest at regular intervals on specific SIP date.
• Investment Duration - This is the period in years for which you plan to continue your SIP.

After entering the above details in the Mutual Fund SIP calculator, just click on calculate to view the future value of your investments along with a short list of Mutual Funds that might be suitable to help you achieve your investment goal.

Option 2. If You Know Your Investment Goal Amount

If you are planning to invest in order to achieve a specific goal such as buying a new car or arranging for the downpayment of a new house, you would already know how much money you will need. In this case, you can use the sip amount calculator to figure out the monthly SIP you need to reach your investment goal.

To use this feature of the SIP calculator, you need to provide the following inputs:

• Savings Goal - This is the amount that you have to save to reach your investment goal.
• Time Period - This is the time period in years within which you plan to reach the investment goal.

Once you have entered the above details, the SIP calculator will provide the monthly SIP amount you need to reach your investment goal within the specified investment tenure.

You can also use the “Adjust Goal Amount for Inflation” feature and select the appropriate rate of inflation to compute the higher SIP amount needed to reach your investment goal after accounting for the impact of inflation.

Investments made into market-linked instruments such as Mutual Funds do not provide guaranteed returns. So investors might find it difficult to figure out how much their money will grow in the future or how much they need to invest to reach financial goals.

The ET Money SIP Investment Calculator helps overcome these problems and provides the following key advantages to investors:

• Instantly Calculate Investment Future Value: ET Money SIP Calculator delivers immediate and precise results, sparing you from number-crunching.
• User-Friendly SIP Calculator: Easily estimate your investment needs with our user-friendly SIP Calculator, suitable for anyone, and it's completely free and unlimited.
• Empower Informed Investment Choices: Plan your investments effectively with the SIP Calculator, ensuring you meet your financial goals effortlessly.
• Discover Top Investment Opportunities: Unlike others, our calculator not only predicts future values and monthly investments but also recommends funds to align with your goals.
• Inflation-Adjusted Results at Your Fingertips: Combat rising costs by effortlessly obtaining inflation-adjusted investment results with a simple button click, a feature lacking in most SIP calculators.