How to Use the SIP Calculator
You can use the INDmoney SIP Calculator in two ways - by entering a monthly SIP amount or by planning backward from a financial goal.
Option 1: Calculate returns from a monthly SIP
Enter your monthly SIP amount, select the investment time period, and set the expected annual growth rate.
The calculator shows your total investment, total gains, and the future value of your SIP Investment.
Option 2: Calculate SIP required for a financial goal
Enter your target goal amount, choose the time period to achieve it, and set the expected annual return. The calculator tells you the monthly SIP required and hence the total returns that you will get to help you achieve your financial goal.
SIP Calculator Examples
Explore practical SIP examples to understand how monthly savings and financial goals impact your long-term investment value.
Example 1:₹5,000 SIP for 10 years
Suppose you are able to save ₹5,000 from your monthly salary and invest it through a SIP for 10 years, with an expected annual return of 12%.
SIP Calculator Result:
- Monthly SIP: ₹5,000
- Investment period: 10 years
- Total investment: ₹6,00,000
- Total SIP gains: ₹5,20,000
- Future value: ₹11,20,000
Example 2: Goal of ₹10 lakh to buy a vehicle
Suppose you want to buy a vehicle worth ₹10 lakh in the next 5 years. By planning your investments backward using the SIP Calculator and assuming an annual return of 12%, you can estimate the SIP required.
SIP Calculator Result:
- Target goal: ₹10,00,000
- Investment period: 5 years
- Required monthly SIP: ₹12,330
- Total investment: ₹7,40,000
- Total SIP gains: ₹2,60,000
Why Use a Goal-Based SIP Calculator
A goal-based SIP calculator helps you plan investments backward from your financial goals, making it easier to decide the right SIP amount and tenure.
How does a SIP returns calculator work?
A SIP return is calculated using the power of compounding. Each monthly investment grows for a different duration, depending on when it is invested. The SIP calculator factors in the monthly investment amount, total number of instalments, and the assumed rate of return to estimate the future value.
A SIP calculator uses the following formula:
Benefits of Using a SIP Calculator
Estimate your SIP amount before real life investing in a mutual fund :
A SIP calculator helps you estimate how much you need to invest every month before choosing a mutual fund, so you can invest with clarity instead of guesswork.
Plan investments based on your financial goals
Whether it’s buying a car, paying for education, or buying a house, a SIP calculator lets you understand the monthly SIP needed to achieve your financial goals.
Understand the power of compounding
By visualising how regular monthly investments grow over time, a SIP calculator helps you see the impact of staying invested longer and helps you understand the concept of Rupee
Compare different SIP amounts and tenures
You can instantly adjust the SIP amount, investment period, or expected return to compare scenarios and choose what fits your income and goals.