SIP calculator

SIP Calculator | Systematic Investment Plan Calculator

The SIP calculator is an online financial tool for calculating monthly SIP returns on mutual fund investments. SIP calculators assist investors in choosing and investing in a suitable SIP investment plan that suits their investment objectives and risk tolerance.

A mutual fund SIP calculator was not very common among investors. However, with the rising participation of the retail segment in the stock market and growing tech development, SIPs have gained immense popularity. As a result, more and more investors have started using a monthly SIP calculator to analyse the potential returns on mutual fund portfolios.

Investors use a monthly SIP calculator to estimate the future value of their SIP investment based on an expected rate of return. Using the SIP return calculator online, you can also analyse the performance of your investment over a specific investment period.

Read the article below to learn more about the SIP calculator and its meaning, uses, and benefits. Use an online SIP calculator to estimate your future returns and make robust investment plans.

What is a SIP Calculator?

A SIP calculator is an online tool that investors use to get an estimated idea of the potential return on their investments. SIP calculator (systematic investment plan calculator) is a beneficial financial tool that enables investors to estimate the future value of their monthly instalments based on an expected rate of return.

The best SIP calculator helps strategise your future investments based on the expected return on your mutual fund investments. The SIP return calculator considers various inputs to calculate the future value of your SIP investments. These inputs include the monthly SIP amount, the investment period, and the expected rate of return. Putting the required inputs in the online SIP return calculator provides you with a number representing your total investment and returns.

How Does the SIP Calculator Work?

The working of the best SIP calculator is based on mathematical inputs, which can be modified to fit your investment goals and tenure. The SIP return calculator returns your investment's final future value (FV) along with the earned interest using the compound interest formula. Read the formula and concept below to grasp the in-depth workings of the best SIP calculator (systematic investment plan calculator).

FV = P [ (1+i)^n-1 ] * (1+i)/i

Where, 

FV = Future value of your investment at maturity

P = Your SIP amount that you invest

i = Compound interest rate
n = investment duration

Example: Suppose Aryan wants to start a monthly SIP of ₹ 5000 for 10 years. She uses a mutual fund SIP calculator to estimate the future value of her investment on maturity. Assuming an expected compounded interest rate of 12 %, the final amount she can receive is:

Inputs for the SIP investment calculator

Monthly SIP = ₹ 5000 

Interest rate = 12%

Tenure = 10 years (120 months)

By putting the above values in the SIP return calculator, Aryan can expect the following outputs for his capital investment.

Output from the SIP investment calculator

Total investment = ₹ 5000 X 120 = ₹ 6,00,000

Future Value = ₹ 11,61,695

Estimated return = ₹ 11,61,695 - ₹ 6,00,000 = ₹ 5,61,695

From the above example, you can see that using the best SIP calculator, Aryan can create a corpus of ₹ 11,61,695 with a total investment of ₹ 6,00,000. The estimated return indicated by the SIP return calculator for Aryan’s investment was ₹ 5,61,695, which accrued based on a SIP return of 12 %.

How Can a SIP Calculator Help You?

Investors extensively use the SIP calculator (systematic investment plan calculator) to forecast the value of their monthly SIP investment. But that is not the only help you get from using the best SIP calculator. Below are some more ways in which a SIP return calculator online can help you in your investment journey.

Investment Planning

A SIP return calculator can be helpful in planning your investment goals. Using a mutual fund SIP calculator, you can estimate the required tenure and investment amount, using which you must continue your mutual fund SIP. The resulting tenure and amount can assist you in planning and executing your investment plans at the right time in the future.

Return Monitoring

A SIP calculator (systematic investment plan calculator) can also be used as a benchmark for the performance of your mutual fund portfolio. You can compare the monthly SIP returns with those of your invested mutual fund returns to make better decisions and enhance your portfolio’s performance.

Comparing Investments

Different mutual funds offer different SIP returns over a given period of time based on their fund’s performance. This is where the best SIP return calculator online comes in to assist you in comparing mutual fund returns across different schemes, providing clarity in decision-making.

Benefits of Using Univest SIP Calculator?

Univest SIP calculator is a tech-enabled yet simple-to-use financial tool. It can help you avoid the headache of manually calculating your mutual fund return. The SIP return calculator by Univest is one of the best online SIP calculators. With an easy-to-use interface and good return projection, this calculator can be your one-stop solution for mutual fund investment plans and return calculation. Discover more benefits of the Univest SIP return calculator below.

Long-term investment projection

The Univest SIP calculator offers a 40-year tenure limit.  It allows inventors to analyse the value of their investment over 40 years, providing a long-term view. The use of the monthly SIP calculator by Univest makes it easier for investors to curate long-term investment goals for up to 40 years.

User-friendly interface

Accessing and using our SIP calculator is an effortless task. You can calculate your estimated SIP return within minutes with a user-friendly interface and interactive input methods. Just put the required values, such as tenure, required interest, and SIP amount, to get a future value of your investments at the tap of a finger.

Graphical presentation of data

For better understanding and straightforward interpretation, the monthly SIP return calculator by Univest offers features like pie charts and graphs. With these graphics, you can better interpret and analyse your SIP investment plan and mutual fund returns, leading to easy decision-making.

Note - “Project your returns with more financial calculators on Univest”

How to use the Univest SIP Calculator?

Enabled with an interactive and easy-to-use interface, you can access the monthly SIP calculator by Univest in some simple steps mentioned below:

Steps to access the Univest SIP calculator

Step 1 - Open your search browser and enter Univest in the search bar. 

Step 2 - On the Univest homepage, click the explore button at the top. 

                  Then, choose the calculator option. 

Step 3 - You will find the Univest SIP calculator on the resultant webpage.

Steps to use the best SIP calculator

Step 1 - On the SIP calculator webpage, enter the monthly SIP amount,  return rate and investment tenure to derive the estimated future value of your invested amount. 

Step 2 - Analyse your projected SIP investment plan and returns through the pie chart and bar graphs for better understanding. 

Step 3 - You can also change the inputs in the best SIP calculator per your requirements to derive estimated returns for your SIP investment plans.

What are Systematic Investment Plans (SIPs)?

“If you invest in SIP, I am confident over a period of 8, 10, 15 years you will get the returns. SIPs should form an integral part of everybody’s savings. “ ~ Rakesh Jhunjhunwala (Founder - Rare Enterprises).

Systematic investment plans, often known as SIPs, are a prominent method of investing in financial instruments like debt, equities and commodities. SIPs are concerned with investing in mutual funds through monthly instalments to generate returns over a specified investment period.

By following the SIP route, investors can invest a fixed amount of money in mutual funds at regular intervals. Such tenures can vary from month to quarter as per the needs of the mutual fund investors. You can also use the best SIP calculator (systematic investment plan calculator) to find the investable SIP amount. This amount can be as low as ₹ 100 and can go up to a large sum of capital, which is typically invested for the long term to generate compounding returns.

Types of SIPs?

Regular SIP

It is the most basic form of SIP investment in which you invest a fixed amount of money in mutual funds, typically on a monthly basis. You can use the monthly SIP return calculator to create SIP investment plans.

Step-Up SIP

Step-Up SIPs are similar to regular SIPs. However, Step-Up SIPs offer the feature to increase the SIP amount regularly to accelerate the wealth accumulation pace. A step-up plan calculator is a crucial tool that can assist you in SIP investments.

Flexible SIP

In flexible SIPs, investors have the liberty to change their SIP investment amount according to the market conditions and investment targets.

Trigger SIP

Trigger SIPs refer to the SIP type in which your capital gets invested in a mutual fund based on a pre-set trigger point. Trigger SIPs are preferred by investors who look forward to taking advantage of market movements.

Perpetual SIP

Perpetual SIPs are long-term investment methods in which a SIP investment plan is initiated for an undefined maturity period. It means there is no end date for a perpetual SIP. Investors can exit such SIPs as they wish over an extended period.

Multiple SIP

Multiple SIPs enable investors to deploy their capital into various SIP schemes through a single SIP. Multiple SIP offers diversification benefits and allow investors to mitigate their risks.

All SIPs mentioned above offer different returns based on the amount invested and investment tenure. You can use the SIP return calculator to simplify your SIP investment journey and compare the returns of various SIP types.

How to Start SIP Investment?

1. Collect Your Verification Document
   Starting a Systematic Investment Plan (SIP) requires a lot of documentation for identity verification. Therefore, you must keep the necessary documents handy to initiate your account opening procedure easily. A PAN card, Aadhar card, passport-size photograph, and cheque for bank details are some of the essential documents required in the identification process.
2. Complete the eKYC
   Once you have identified and collected all the required documents, you must proceed with the eKYC procedure. This step involves filling out a form that includes details like your name, birthdate, address, photo ID, and other important information.
3. Register with a broking platform
   To start a SIP investment plan, you must have a Demat account with a registered investment broking platform. Once your demat account is active, you can choose from various mutual fund schemes to start your SIP.
4. Create an Investment Plan
   You must form a SIP investment plan to achieve your desired portfolio corpus. Such an investment plan includes key aspects like the investment tenure and required portfolio value at maturity.
5. Use a SIP Calculator For Return Estimation
   As mentioned above, making an investment plan is a crucial aspect of SIP investing. Hence, you can use the best SIP calculator to analyse your investment strategy. Just put the desired inputs in the online SIP return calculator of Univest and get an accurate estimation of the future value of your investment.
6. Search For A Suitable Investment Scheme
   Once you have decided on the SIP amount and investment tenure, you must proceed toward finding the right investment scheme. Explore the available mutual fund schemes and analyse and choose the right scheme that aligns with your risk profile and investment strategy.
7. Decide SIP Frequency
   Since SIPs are fixed investments at regular intervals, choosing the right SIP frequency per your risk appetite and investment goal is essential. Typically, a SIP is invested every month. However, various fund houses offer quarterly and other SIP frequencies, too. You can choose an SIP frequency that best suits your investment strategy.
8. Initiate Transaction
   A SIP investment's last stage is initiating the first SIP transaction. This means you must invest the first instalment of the SIP in the chosen scheme to activate your SIP investment plan.

SIP Vs Lumpsum

Investments in a mutual fund scheme can be done in two ways. The first is the systematic investment plan (SIP), and the second method is the lump sum method. To understand the difference between lumpsum and SIP methods of investing, please refer to the table below:

SIP Parameter

Meaning :- Investing an amount at regular intervals.

Frequency of Investment:- Invested in a fixed interval at a specific date.

Capital Requirement:- Can invest with low capital.

Calculators Used:- SIP calculator

Lumpsum Parameter

Meaning :- Investing a sum of capital all at once.

Frequency of Investment:- Once only.

Capital Requirement:- Requires a large sum of capital to earn good returns.

Calculators Used:- Lumpsum Calculator

Note - “Use our free lump-sum calculator to estimate your returns accurately”

How Are SIP Investment Returns Calculated

Investors usually prefer to use the online SIP return calculator to calculate SIP returns. It helps them to get an estimate of the potential return on their investments. However, to better understand your SIP returns, as depicted in the best SIP calculator, you must understand the calculation of these returns.

Typically, SIP returns are calculated using the formulas below:

• Absolute Returns
  Absolute return refers to returns generated by an SIP investment based on the initial and present value of your SIP investment. Absolute returns calculation is very simple and is used to calculate the short-term performance of an investment.
• CAGR
  The compounded annual growth rate (CAGR) measures the annual growth of SIP returns over a given period. Unlike absolute returns, CAGR factors compound into return calculations, providing a better image of your portfolio.
• XIRR
  The Extended Internal Rate of Return is a comprehensive SIP return calculation. It calculates the returns in each SIP investment over the investment tenure, providing a clear and accurate measure of your portfolio’s performance. XIRR is effective for SIP investment plans where multiple SIP investments and withdrawals are made.