Want to learn about SIP? Read our full detailed article – Read SIP Article

How to Use Our SIP Calculator & Plan Your Financial Goals

This simple calculator helps you estimate the future value of your investments. A Systematic Investment Plan (SIP) is a powerful way to build wealth over time by investing a fixed amount of money at regular intervals (usually monthly).

Here’s a simple, step-by-step guide to using the tool.

1. How to Use the Calculator

• Currency: First, select your preferred currency (like ₹, $, €, etc.). This will update all the results to show values in that currency.
• Monthly Investment: This is the fixed amount you plan to invest each month. You can use the slider for a quick estimate or type in the exact amount.
• Expected Return Rate (p.a.): This is the annual (yearly) return you expect your investment to generate. Mutual funds, for example, might have historical returns you can use as an estimate, but this number is not guaranteed. A common range to explore is 10-14%.
• Investment Period (Years): This is the total number of years you plan to stay invested. The longer your time period, the more you’ll see the “power of compounding” at work!

2. Understanding Your Results

Once you’ve filled in the fields, the calculator will instantly show you three key numbers:

• Total Invested: This is the total amount of money you put in from your own pocket over the entire investment period. (It’s simply Monthly Investment x 12 months x Number of Years).
• Estimated Returns: This is the wealth you’ve generated. It’s the profit you’ve earned from your investments.
• Total Value: This is the grand total you can expect to have at the end of your investment period. (Total Value = Total Invested + Estimated Returns).

The Chart: Your Investment vs. Your Earnings

The circular chart gives you a quick visual breakdown of your total value. It clearly shows how much of your final amount is the money you put in (Total Invested) versus how much is pure profit (Estimated Returns). For long-term investments, you’ll be amazed to see the “Estimated Returns” slice become much larger than the “Total Invested” slice!

What is a SIP and Why Is It a Smart Choice?

A Systematic Investment Plan (SIP) is a method of investing in mutual funds where you invest a fixed amount of money every month on a specific date. It’s like a recurring deposit, but for investments with the potential for higher returns.

Key Benefits of a SIP:

1. The Power of Compounding: This is the most magical part of investing. When you invest, you earn returns. The next month, you earn returns on your original investment and on the returns you’ve already made. It’s like a snowball effect that can turn small, regular investments into a large amount over time.
2. Disciplined Investing: By investing a fixed amount every month, you build a habit of saving and investing without having to think about it.
3. Rupee Cost Averaging: When the market is low, your monthly SIP buys more units of your mutual fund. When the market is high, it buys fewer units. Over time, this averages out your purchase cost and can reduce the risk of investing a large lump sum at the wrong time.
4. Flexibility: You can start with a small amount (as low as ₹100 or ₹500 in many funds) and can easily increase your SIP amount, pause it, or stop it whenever you need to.

Want to learn about SIP? Read our full detailed article – Read SIP Article

Frequently Asked Questions (FAQs)

Q: Are the returns from a SIP guaranteed? A: No. SIP investments are tied to the market (like mutual funds or stocks). The returns are not guaranteed and can go up or down. The “Expected Return Rate” is just an estimate to help you plan.

Q: What is a good amount to start a SIP? A: The best amount is one you can comfortably invest every month without straining your budget. The key is consistency. You can always start small and increase your SIP amount later using a “SIP Top-up.”

Q: Can I stop my SIP at any time? A: Yes, you have full control. You can stop your SIP payments or withdraw your money (redeem your units) at any time, though some funds may have an “exit load” (a small fee) if you withdraw within a short period, like one year.

Disclaimer: *This SIP calculator is for illustrative and informational purposes only. The results are based on your inputs and do not guarantee future returns. All investments are subject to