SBI SIP Calculator 2024

SIP returns from SBI sip plans are just an estimation based on the fund’s past performance and it doesn’t guarantee future returns. The actual returns are subject to fund and market performance.

What is a SBI SIP Calculator?

SBI SIP Calculator is an online tool that helps in estimating the returns from a SIP investment. The SIP calculator works on the inputs given like investment amount or target amount, expected rate of return, investment tenure, and step-up rate. Scripbox’s SBI SIP Calculator provides output in both graphical and tabular format. The SBI SIP calculator clearly shows the investment amount, potential capital gains and estimated maturity amount.
The SBI SIP Calculator works on the investment amount and target amount approach. The investment amount approach is the most used one. Here, the investors enter how much they want to invest and the tenure, expected rate of interest and step up percentage. On the other hand, the target amount approach estimates the current investment amount every month based on the target provided by the investor.
Scripbox’s SBI SIP calculator estimates the return in terms of maturity amount based on three different growth scenarios. The SBI SIP Calculator only gives an estimate based on the inputs provided and doesn’t guarantee any returns. The performance of a mutual fund affects its return which can be higher or lower than the estimate provided by SBI SIP Calculator.

How does Scripbox’s SBI SIP Calculator work?

SBI SIP calculator estimates potential return using the compound interest formula. The SBI SIP calculator considers the number of times compounding is applicable and calculates the potential returns. Also, the SBI SIP calculator requires inputs from the user. Hence, the user has 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 SBI SIP calculator will automatically calculate the maturity amount and the wealth to be gained from the mutual fund investments. Moreover, One can choose to enter the target amount matching their financial goal and reverse calculate the monthly amount. Therefore, the SBI SIP calculator will calculate the monthly SIP amount to be invested for the given tenure and growth rate.

How is SBI SIP Return Calculated?

SBI SIP return can be calculated using different methods. They are absolute return, annualized returns, CAGR, and XIRR. However, to estimate SIP returns, CAGR is the most effective method.
CAGR means Compound Annual Growth Rate. CAGR is the rate at which an investment grows each year for the entire tenure of the investment. The  below is the formula for calculation 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

Ms Diksha has invested INR 5,00,000 (INR 20,000 a month for five years) in a mutual fund when the NAV is INR 31. At the time of withdrawal after five years, the NAV is INR 50. Using the CAGR formula, we can estimate SIP returns for Ms Diksha.
CAGR = (ending-value/beginning – value) ^ (1/number-of-years) – 1* 100
CAGR = (((50/31) ^ (1/5)) – 1) * 100
CAGR = 10.03%
This means the investment has grown 10.03% each year for a tenure of 5 years.
The SIP return will remain the same in terms of months as well.
CAGR = (((50/31) ^ (12/60)) – 1) * 100
CAGR = 10.03%
Hence the investment of INR 5,00,000 will grow to INR 8,06,353 in 5 years. This is a scenario of the investment giving above-average returns. If the NAV after five years is INR 44 and INR 40, the expected return would be approximately 12% and 10%, which is average and below-average, respectively.

NAV at the time of withdrawal	Expected Return	Maturity Amount	Growth Scenario
50	14%	INR 9,62,707	Above Average
44	12%	INR 8,81,170	Average
40	10%	INR 8,05,255	Below Average

One should not forget that mutual fund investments are subject to market risks. Hence, one should be mindful of the risks and understand the SBI SIP calculator is just an estimate of the potential returns and doesn’t guarantee them.

How to use State Bank of India SIP Calculator?

Every individual is curious to know the returns from their investment. This also helps the investor know that their investment is going in the right direction. Also, one can check that their investments align quickly with the financial goals for a particular duration.
Scripbox’s SBI SIP calculator helps in estimating potential returns from SIP investments for a particular investment period. The SBI SIP calculator is available online on Scipbox’s website, and one can use it for free. Scripbox’s SBI SIP calculator provides two approaches to estimating the wealth and maturity amount, namely ‘Investment Amount’ and ‘Target Amount’.

Investment Amount Approach

The investment amount approach uses the monthly amount that one can invest in a SIP. Thus, investors who know how much they want to contribute monthly will benefit from the investment amount approach. This helps in estimating potential SBI SIP returns. To determine the SBI SIP maturity amount and wealth gained for specific tenure, one has to follow the below steps:

• Firstly, decide the monthly investment amount (SIP amount)
• Next, enter the expected growth rate
• Enter the investment duration in years
• Finally, enter the step up percentage. Step Up means a yearly increment in the investment amount that is usually aligned with the growth of the investor’s income. In other words, investors can invest an additional SIP amount every year with a set percentage.  Generally, the step-up percentage should be equal to the individual’s annual compensation hike.

The SBI SIP calculator will automatically estimate the potential gains at the end of the investment duration. Thus, this simplifies the calculation. Also, one can view the calculation of SBI SIP Maturity Amount either in a chart or table form. The investment graph is simple to understand as it provides a visualization of the SBI SIP maturity amount and the wealth gained during the investment tenure. On the other hand, in the tablet format, one can quickly identify the SBI SIP Step-Up value for every year (indicated with a blue arrow).
Additionally, the Scripbox SBI SIP calculator estimates the maturity amount based on three growth scenarios. They are above-average returns, average returns and below-average returns.

Target Amount Approach

Through the target amount approach, investors can estimate the monthly investment (SIP) amount required to meet their financial goals. Thus, the SBI SIP calculator helps in determining the monthly value. However, one must know how much money (target amount) they want in return at the end of the investment period. Therefore, one can calculate the monthly investment SIP amount by following the below steps:

• Firstly, enter the expected target amount
• Now, enter the expected growth rate
• Next, enter the investment duration in years
• Finally, set the step up percentage. Step Up means a yearly increment in the investment amount that is usually aligned with the growth of the investor’s income. In other words, investors can invest an additional SIP amount every year with a set percentage.  Generally, the step-up percentage should be equal to the individual’s annual compensation hike.

The  SBI SIP calculator will automatically estimate the SIP target amount. The calculation of the SIP target amount table shows the details of their SBI investments. Such as the number of years, investment amount, interest earned and maturity amount. Also, in the tablet format, one can easily identify the SBI SIP Step-Up value for each year (indicated with a blue arrow).
Furthermore, one should not forget that mutual fund investments are subject to market risks. Hence, one should be mindful of the risks and understand the SBI SIP calculator is just an estimate of the potential returns and doesn’t guarantee them.

What are the Benefits of the SBI SIP Calculators?

Research and analysis are important before making an investment decision. Also, one must understand the potential returns before investing. This helps to analyze if it is a profitable investment opportunity or not. Furthermore, the financial objective of the investor and the investment objective of the asset are aligned for the investors. Thus, this enables investors to select the right asset that will help them realize their goals faster.
The following are the benefits of the SBI SIP calculator:

Estimate maturity amount

The SBI SIP calculator helps investors to estimate their potential returns at the end of the investment duration. Hence, they can estimate the total value that they will receive at the end of the tenure. Also, the SBI SIP calculator helps in assessing the monthly investment amount if the investor knows how much maturity amount they want to earn at the end of their investment tenure.

Easy to use

Scipbox’s SBI SIP calculator is relatively easy to use and quick to navigate. One has to simply enter the details such as investment amount or maturity amount, expected return, investment tenure and step up percentage to estimate their returns or monthly investment amount. Also, the SBI SIP calculator saves investor’s time from doing complex calculations. The SBI SIP calculator estimates the maturity amount and the monthly investment amount within seconds.

Graphical and Tabular Representation

The SBI SIP calculator shows the return estimates in both graphical and tabulated forms. Through these representations, one can easily interpret the returns, investment amounts and make informed investment decisions.

Maturity amount based on growth scenarios

The SBI SIP calculator estimated the returns based on three growth scenarios. The three growth scenarios are based on above average, average returns and below-average returns. Therefore, investors can select the scenario based on their investment requirements before they start investing. 

Step Up

The Scripbox SBI SIP calculator provides an opportunity for the investor to step-up their investments annually. Stepping up SIPs allows individuals to achieve their financial goals faster. Also, the step-up details can be found in the table format of the SBI SIP maturity amount estimation.

Informed Decision

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

Frequently Asked Questions