Did you know?
SIP leverages Rupee Cost Averaging. You buy more units when prices are low and fewer when prices are high, reducing your average cost over time.
Investment Breakdown
Everything you need to know about SIP
Get answers to common questions about Systematic Investment Plans and calculators.
What is a SIP Calculator?
A SIP calculator is a simple tool that allows individuals to get an estimate of the returns on their mutual fund investments made through SIP. SIP investments in mutual funds have become one of the most popular investment options for millennials lately.
These calculators are designed to give potential investors an estimate of their mutual fund investments. However, the actual returns offered by a mutual fund scheme vary depending on various factors. A SIP calculator does not provide clarification on the exit load and expense ratio (if any).
How do online SIP calculators work?
Online SIP calculators work on the principle of compound interest. The formula used is:
- M: Amount you receive upon maturity
- P: Amount you invest at regular intervals
- i: Periodic rate of interest
- n: Number of payments you have made
How to calculate SIP returns?
To calculate SIP returns, you need to provide three key inputs to the calculator: