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SIP Calculator

A systematic Investment Plan or SIP helps you make small investments in mutual funds at regular intervals to grow your money in the smartest way possible. A SIP calculator is an online tool that helps you estimate the returns from your SIP investment. Use our SIP calculator to see how much your investment can grow if you invest today.

What is SIP Calculator?

A SIP Calculator is an online tool that estimates the return from a SIP investment. The calculator works on the inputs given by the user. It requires simple inputs like investment amount or target amount, expected rate of return, investment tenure, and step-up rate. Scripbox’s SIP calculator gives the output in both graphical and chart format. The investment amount, potential capital gains and maturity amount are clearly shown.

The calculator works on the investment amount approach and target amount approach. The investment amount approach is the most used one where the investor inputs the investment amount, return expected, tenure and step-up amount. The target amount approach uses the target amount the investor wants to achieve in the said duration to estimate the current investment required.

Scripbox’s SIP calculator estimates the return in terms of maturity amount based on three different growth scenarios. They are above average, average, and below-average.

It is to be noted that the SIP calculator only gives an estimate based on the inputs provided. The SIP Calculator doesn’t guarantee any returns. The return from any mutual fund depends on the performance of the fund. Also, the actual return from the mutual fund investment can be higher or lower than the estimate provided by the SIP Calculator

How does the SIP Calculator work?

SIP calculators estimate potential return using the compound interest formula. The calculator takes into account the number of times compounding is applicable and estimates the potential returns. Furthermore, the SIP calculator requires one to enter the monthly amount they want to invest, the duration of the investment (in years) and the expected rate of return on the SIP.

The online SIP calculator will automatically calculate the maturity amount and also the wealth to be gained from the mutual fund investments. One can also choose to enter the target amount matching their financial goal and reverse calculate the monthly amount to be invested for the given tenure and rate of growth.

How is SIP return calculated?

SIP return can be calculated using absolute return, annualized returns, CAGR, and XIRR. However, CAGR is the most effective method to estimate SIP returns.

CAGR or Compound Annual Growth Rate is the rate at which an investment grows each year for the entire tenure of the investment. Following is the formula of CAGR:

CAGR = (ending value/beginning value) ^ (1/number of years or months) – 1*100

Where,

Ending value is the NAV at the time of withdrawal,

Beginning value is the NAV at the time of investment.

A number of months or years is the tenure of the investment.

Example

Mr Anudeep has invested INR 2,52,000 (INR 3,000 a month) in a mutual fund when the NAV is INR 20. At the time of withdrawal after seven years, the NAV is INR 50. Using the CAGR formula, we can estimate SIP returns for Mr Anudeep.

CAGR =(ending-value/beginning – value) ^ (1/number-of-years) – 1* 100

CAGR = (((50/20) ^ (1/7)) – 1) * 100

Compounded Annual Growth Rate = 13.98%

This means the investment has grown 13.98% each year for a tenure of 7 years.

The return will remain the same in terms of months as well.

CAGR = (((50/20) ^ (12/84)) – 1) * 100

CAGR = 13.98% ~ 14%

Hence the investment of INR 2,52,000 will grow to INR 4,29,076 in 7 years.

How to use Scripbox’s Systematic Investment Plan Calculator?

While investing, everyone is curious to estimate their potential returns. Estimating returns ensures the investor whether or not the chosen SIP will help them realize their financial goals or not.

Scripbox’s online SIP calculator is available on our website. One can estimate the potential returns on their SIPs at the end of their investment tenure with the help of our SIP calculator. Scripbox’s SIP calculator provides two approaches to estimating the wealth and maturity amount, i.e. ‘Investment Amount’ and ‘Target Amount’.

Investment Amount Approach

The investment amount approach to estimate potential SIP returns will help individuals who know how much they like to invest monthly. Under this approach, one has to follow the below steps to determine their potential returns:

  • Firstly enter the monthly investment amount
  • Next, enter the expected growth rate
  • Enter the investment duration in years
  • Finally, enter the step up percentage. Step Up is an increase in the investment amount every year in line with the investor’s income growth. In other words, investors can increase their SIP investments every year by the step-up %. This helps to achieve financial goals faster and systematically. The step-up % should generally be equal to the rise in the individual’s annual pay.

The calculator will automatically estimate the potential gains at the end of the investment tenure. Also, one can view the calculation of SIP Maturity Amount either in a chart or table form. The investment graph provides a visualization of the maturity amount and the wealth gained during the investment tenure. In the table format, one can easily identify the Step-Up value every year (indicated with a blue arrow).

Furthermore, the Scripbox SIP calculator estimates maturity amount based on three growth scenarios – Above average returns, average returns and below-average returns.

Target Amount Approach

The target amount approach helps in estimating the monthly investment (SIP) amount one needs to invest to achieve their financial goal. However, for this, one should know the final amount they wish to have at the end of the investment tenure. Under this approach, one has to follow the below steps to determine the monthly investment amount:

  • Firstly, provide the expected target amount
  • Now, enter the expected growth rate
  • Next, enter the investment duration in years
  • Finally, enter the step up percentage. Step Up is an increase in the investment amount every year in line with the investor’s income growth. In other words, investors can increase their SIP investments every year by the step-up %. This helps to achieve financial goals faster and systematically. The step-up % should generally be equal to the rise in the individual’s annual pay.

The calculator will automatically estimate the SIP target amount. Also, in the ‘Calculation of the SIP target amount’ table, one can find the details of their investments. Such as years, investment amount, interest earned and maturity amount. Furthermore, in the table, one can easily identify the Step-Up value every year (indicated with a blue arrow).

Furthermore, it is important to know that mutual fund investments are subject to market risks. Hence, investors should be mindful of the risks and understand the calculator is just an estimate of the potential returns and doesn’t guarantee them.

What are the Benefits of the SIP Calculator?

Research and analysis are necessary before making an investment decision. Also, one must estimate the potential returns before investing to analyze if it is a profitable investment opportunity or not. Furthermore, it is essential to make sure the financial objective of the investor and the investment objective of the asset are aligned. This enables investors to choose the right asset that will help them realize their goals faster.

The following are the benefits of the SIP calculator or mutual fund SIP return calculator:

Estimate maturity amount

The SIP calculator helps investors to estimate their potential returns at the end of the investment duration. It also helps in estimating the monthly investment amount if the investor knows how much they want to earn at the end of their investment tenure.

Easy to use

Scripbox’s SIP calculator is quite easy to use and navigate. One has to enter the required details to estimate their returns. Also, the calculator saves investor’s time from doing complex calculations. The calculator estimates the maturity amount and also the monthly investment amount within seconds.

Graphical and Tabular Representation

The calculator shows the return estimates in both graphical and tabulated forms. This helps investors to interpret the returns and make informed decisions easily.

Maturity amount based on growth scenarios

The SIP calculator estimated the returns based on three growth scenarios. The three growth scenarios are based on above average, average and below-average returns. Therefore, potential investors can choose the scenario that aligns with their investment requirements and start investing.

Step Up

The Scripbox SIP calculator provides an opportunity for the investor to step-up their investments annually. In other words, stepping up SIPs will help in achieving the financial goals faster. Also, the step-up details can be found in the table format of the maturity amount estimation.

Informed Decision

Investors can compare multiple return scenarios using the free online SIP calculator and also make the right investment decisions that will help them earn significant returns.

How to invest in a Systematic Investment Plan (SIP)?

The SIP mutual fund investments can be made in the following 3-steps:

  • Step 1: Understand the objective of the investment before moving forward with the investment. Once your financial goals are set, it will help you in identifying the right asset class for your investment.
  • Step 2: Choose the right category of a mutual fund based on the exposure you wish to have in equity or debt as per step-1.
    Before actually making the investment, you will be required to complete the application form, submit identity and address proof and complete KYC details.
  • Step 3: Select the date of SIP. You can either do it yourself or enable the auto-debit option. Under this, the amount will automatically debit from your bank account on the specified date.

Frequently Asked Questions

​​What is SIP Account?

SIP is a popular way of investing in mutual funds. SIP account will help you invest a fixed amount at regular intervals in a mutual fund. To set up a SIP account, you will have to first shortlist a mutual fund, complete the KYC procedure with the fund house or intermediary. Next, choose the SIP frequency, SIP amount and set up a bank mandate for regular payments (auto-debit). This is a disciplined way of investing, and you do not have to worry about timing the market.

How SIP Works?

SIP is a way of investing a fixed amount at regular intervals in a mutual fund. Through SIP investing, you can purchase units of a mutual fund for the specified amount on a given date each month. SIP investing is an automated way of investing and doesn’t require you to invest each time manually. However, you will have to provide a SIP bank mandate to automate your investments.

What are the Different Types of SIP Available?

The different types of SIPs are:
Regular SIP: The simplest type of SIP that lets you invest a fixed amount at regular intervals. You can choose a suitable investment frequency for your SIPs: monthly, bi-monthly, quarterly or half-yearly.
Top-up SIP: This SIP allows you to increase your SIP amount periodically.
Flexible SIP: This type of SIP allows you to alter your investment amounts. You have to inform the fund house regarding the SIP amount at least a week before the SIP instalment date.
Perpetual SIP: While starting the SIP investments, you will have to mention the tenure of the SIP in the application form. If no tenure is mentioned, then it is considered as a perpetual SIP. As a result, the SIP will continue till you give any specific instruction to stop it.
Trigger SIP: You can set a SIP date, redeem or switch the SIP once the trigger for the event occurs.
SIP with Insurance: Certain fund houses offer insurance for SIP investments if the investment durations are for a long period. The initial insurance cover is about 10 times the first SIP amount and increases gradually with time.
Multi SIP: You can invest in multiple schemes of the fund house through a single instrument.

How to Calculate SIP Manually?

To calculate SIP returns manually you have to be familiar with the future value formula.
FV = P [(1+i)^n-1]*(1+i)/i
FV = Future Value of your SIP in mutual funds
P = SIP amount you invest in mutual funds
i = compounded rate of return
n= Investment duration in months
The returns are compounded for every SIP instalment.
Alternatively, you can use the XIRR function in an excel sheet to compute SIP returns.
Often, computing SIP returns manually can be a cumbersome process. You can estimate the potential returns from SIP within seconds using Scripbox’s SIP Calculator.

How to Calculate Cagr for SIP?

For SIPs, cash inflows and outflows may not be equal and sometimes can be irregular. Therefore, it is advisable to use XIRR to compute returns from SIP. CAGR computes point-to-point returns and is hence not suitable for calculating SIP returns. However, CAGR can be used for computing returns from lumpsum investments. XIRR is an Excel (or on any other spreadsheet app) function that will help you compute annualised returns for your SIP tenure.

How Much Should I Invest in SIP?

There is no ideal SIP amount for investment. The SIP amount entirely depends on your financial position, investment tenure and goal. Therefore, the amount differs from investor to investor. Hence, you should identify your goal, corpus you wish to create, duration to achieve the goal and compute the SIP amount accordingly. You can leverage online tools to identify the right SIP amount for your investment goal. Try goal-based investing from Scripbox. It helps with hassle-free investments.

What is the Minimum and Maximum Tenure of SIP?

There is no minimum or maximum tenure for SIP investments. The tenure depends on your investment objective. Furthermore, when investing in equity mutual funds, it is advisable by experts to invest for at least 3 to 5 years. Since equity funds invest in stocks, they are volatile. Therefore, longer investment durations help you average out the volatility and generate significant returns.

Can I Increase My SIP Amount?

Yes, you can increase your SIP amount. Top-up or Step-up SIP will help you increase your SIP investment amount periodically. While starting your SIP investments, you can opt for the top-up or step-up option in the application form and give the instructions accordingly. Also, Scripbox will allow you to step up your investments at any time.

How to Redeem SIP Mutual Fund Online?

You can log in to the mutual fund house page using your folio number or PAN number. Select the scheme and amount or number of units you wish to redeem. Upon successful redemption, the amount will reflect in your bank account. Furthermore, if you have invested through an online portal like Scripbox, you can directly redeem from their portal by logging in and selecting the scheme.

How Much to Invest in SIP to Get 1 Crore?

You can build your INR 1 crore with any SIP amount. However, the smaller the amount, the longer will be the duration to create the 1 crore corpus. For example, you can build a corpus of INR 1 crore with a SIP amount as low as INR 5,000 in 19 years. However, if your SIP amount is higher, say, INR 20,000, you can achieve your goal in just 12 years.

How to Start SIP in Scripbox App?

Firstly, download the Scripbox App from App Store or Play Store. Next, create your profile, and complete the KYC procedure that is completely online and paperless. To proceed, complete the registration process by providing all the necessary details. Choose the plan that you wish to invest in, select the SIP option and invest. Investing through Scripbox is as easy as online shopping and can be done within a couple of minutes.

How to Stop My SIP?

You can stop your SIPs directly through the AMC website. Login to the fund house website, select the SIP you wish to cancel and click on ‘Cancel SIP’. It takes up to 21 working days to process the request. Alternatively, you can also cancel the SIP offline by communicating to the AMC and filling a form. Furthermore, if you invested through online platforms, you can cancel the SIP directly from their portal.

Can I Renew a SIP?

Yes, you can renew the SIP before its expiration date. You have to provide the renewal instructions at least 30 working days before the last SIP date. However, even if the SIP expires, you can renew it by providing the folio number of the SIP. The renewal may take up to 21 to 30 days to process the form and re-starting the SIP.

Is SIP better or a lump sum?

The answer lies in your own investment goals and cash flows in hand. If you have a huge amount with you and you are looking for an investment opportunity, you can consider investing a lump sum amount in mutual funds.
However, if you are looking for a disciplined investment over a period of time with a fixed amount, you can opt for the Systematic Investment Plan (SIP) mode of investment. You can refer to our complete guide on how to choose between SIP and lumpsum mode on investment.

Which is better FD or SIP?

The decision of FD vs SIP or which is better FD or SIP depends on the objectives of an investor, type of investment solution, and the understanding or acceptance of risk. There are multiple common grounds on which you can compare both the options like returns, liquidity, tax, investment objective, and risk. An investor who wants to invest in a secure and pre-determined interest providing an investment option can consider FD.
Whereas an investor who is ready to accept market fluctuations associated with mutual funds can invest in a fund through SIP. You must compare both options and choose the option that suits your investment objectives.

Is SIP tax-free?

SIP is a method of investing in a mutual fund. The taxability of mutual funds depends on their type and the period of investment. So, a SIP is not always tax-free. If you invest in an equity-linked saving scheme ELSS mutual fund, the returns will be tax-free. If you invest in equity mutual funds and invest for 12 months, you will receive short-term capital gain and pay tax @ 15% + cess + surcharge. However, if you stay invested for more than 12 months, then you will earn long-term capital gains and pay tax @ 10% + cess + surcharge if the gain is more than Rs 1 lakh.
Now, let’s say you invest in debt funds and withdraw before 36 months, then you will earn STCG and pay tax at the slab rate applicable. However, if you withdraw after 36 months of investments, then the LTCG will taxable at the rate of 20% + cess + surcharge.

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₹ 21,906 Cr

Fund Size

17.85%

5 Year CAGR

5 Y CAGR

Why invest in SIP mutual funds?

We automate best practice investing process for you, no matter what your investment needs are. For everything else, our customer support is there 7 days a week 8 am to 8 pm to help you

Learn how it works

Simple and Convenient
Simple and Convenient

All the mutual fund SIPs can be tracked easily. Eliminate the worry to time the market each time.

Manage Risk
Manage Risk

Investing regularly via SIP helps you manage market volatility better.

Financial Planning
Financial Planning

Saving by investing regularly is the best habit, and every investor needs to inculcate it.

Financial Discipline
Financial Discipline

SIPs help you automate financial discipline by ensuring money gets invested periodically.

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How to invest in SIP mutual funds?

Investing through Scripbox is made easy and paperless. All you need to do is follow the below steps and start investing.

choose fd plan
Choose an SIP mutual fund that suits your need

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create account
Create an account

Create an account with Scripbox through a paperless process, to invest in this fundmore...

invest online
Invest online and transfer

Invest via netbanking, UPI or through an SIP (eNACH mandate).more...

track investments
Track your investments

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