SIP Calculator

Calculate your return on investment on SIP over time

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What is SIP (Systematic Investment Plan)?

A SIP, or Systematic Investment Plan, invests money in stocks or other securities over time. It usually involves investing a fixed sum of money at fixed intervals, such as once a month. The investor specifies the amount to be invested each time and the frequency of investments. This plan systematically helps investors achieve their financial goals by investing a fixed sum at fixed intervals.

One example of how a SIP might work is as follows:

Let's say you invest 500 rupees per month into a mutual fund that follows the stock market. Over a year, this will add up to 6,000 rupees. If the stock market goes up, your investment will be worth more than if it had been invested all at once. But if the market goes down, your investment will be worth less than if it had been invested all at once. One of the advantages of a SIP is that allows investors to take advantage of price drops without selling their investments during market volatility.

Why invest in SIP (Systematic Investment Plan)?

There are many compelling reasons to invest in a Systematic Investment Plan (SIP). Perhaps the most obvious benefit is that SIP investing can help you build your wealth over time. Investing a fixed sum each month allows money to grow through the power of compound interest.

Another major benefit of SIP investing is that it can help you stay disciplined with your spending. When you have a set amount of money automatically deducted from your account each month, you are less likely to overspend on unnecessary items. This can help you save more money in the long run and reach your financial goals sooner.

Some other prime reasons to invest in SIP are:

  • A SIP allows you to invest small amounts of money regularly. This makes it easy for you to save money over time.
  • It helps you purchase units in a mutual fund at regular intervals. This can help you to average out the price at which you purchase the units, and thereby reduce your overall risk.
  • Moreover, SIP allows you to make disciplined investments. This can help you to avoid making rash investment decisions, and instead make well-informed decisions about where to invest your money.
  • It also helps you to stick to your investment plan. This is because when you invest in a SIP, you are automatically investing in a fixed plan, which does not allow for any flexibility on your part.
  • Lastly, a SIP is an easy way to invest in mutual funds. This is because all you need to do is set up the necessary payments, and the mutual fund company will take care of the rest.

What are the different types of SIP?

Systematic Investment Plans (SIPs) are one of the most popular investment products in India. They allow investors to invest a fixed sum of money at fixed intervals, usually monthly. This helps them to average out their purchase price and reduces the risk of investing in a single stock.

There are several types of SIPs available in India:

Regular SIP:

A regular SIP is a fixed sum of money that is invested at fixed intervals. For example, if you invest Rs. 5,000 every month in a regular SIP, your investment will be Rs. 60,000 after one year.

Top up SIP:

A top-up SIP is an investment plan where you invest a fixed sum of money at fixed intervals, but you can also top up your investment whenever you want. This means that if you have already invested Rs. 5,000 in a top-up SIP and have an extra Rs. 2,000 to invest, you can add that amount to your investment and continue the plan.

Flexible SIP:

A flexible SIP is very similar to a top-up SIP, except that the investments are not fixed sums of money. Instead, you can invest any amount of money that you want in a flexible SIP. This means that if you only have Rs. 3000 to invest this month, you can still invest in a flexible SIP plan - it just won't be as much as if you had invested Rs. 5000 each month.

Perpetual SIP:

A perpetual SIP is an investment plan where the investor invests a fixed sum of money at fixed intervals, but the investment does not have to be completed in a set number of years. This means that once you start a perpetual SIP plan, you can continue investing in it for as long as you want - there is no end date like there is with other types of investment plans.

Trigger SIP:

Trigger SIPs are very popular in India because they allow investors to take advantage of market fluctuations. A trigger SIP works by automatically investing a fixed sum of money in the stock market whenever the stock market goes up or down by a certain percentage. This means that if the stock market falls by 10%, for example, your trigger SIP will automatically invest an additional 10% of your original investment into the market to try and make up for any losses.

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What is a SIP calculator?

A systematic investment plan (SIP) calculator is a tool that allows investors to calculate the potential returns on their investments over some time. The calculator takes into account the amount being invested, the frequency of investments, and the expected rate of return. It then displays the total amount that would be earned, as well as the compounded annual growth rate (CAGR) of the investment.

The SIP calculator can be useful for investors who are considering starting a regular savings plan. It can help them to determine how much money they need to save each month to achieve their desired goal. Additionally, it can give them an idea of the potential earnings from their investment, which can help them to make informed decisions about their financial future.

Who can use this SIP calculator?

SIP calculator can be used by anyone who wants to invest systematically, regardless of their investment experience or knowledge. Using a calculator like this can help investors create and follow a plan that is tailored specifically to their needs and goals.

When using a systematic investment plan calculator, there are a few things that investors should keep in mind. First, it's important to determine the amount of money that can be comfortably invested regularly. Secondly, investors should decide what they want their investment goal to be. Once these two factors have been determined, the calculator can be used to create a plan that will help investors achieve their desired outcome.

A systematic investment plan calculator is an easy way for investors to create and follow a disciplined investment strategy. By entering information about their goals and how much money they can comfortably invest regularly, investors can use this type of calculator to develop a plan that is tailored specifically to their needs.

How is SIP calculated & the formula used?

SIP is an investment strategy where an investor commits to investing a fixed sum of money at fixed intervals over a while. The most common interval is monthly. The advantage of investing via SIPs is that it helps to average out the cost of investment and reduces the risk associated with timing the markets. SIPs are also a convenient way to invest, as they can be set up to happen automatically via standing orders or direct debits.

To calculate the SIP amount, you simply need to divide the total investment amount by the number of intervals (months) over which you plan to invest. For example, if you want to invest Rs 1 lakh for 10 months, your SIP amount would be Rs 10,000 per month.

How to use the Equirus Wealth SIP calculator?

When you're ready to start investing, the Equirus Wealth SIP calculator is a helpful tool to estimate how much you need to set aside each month to reach your financial goals. To use the calculator, simply enter your desired investment amount, investment period, and expected annual rate of return.

The calculator will then provide an estimate of the monthly amount you'll need to invest to reach your goal. Keep in mind that the actual amount may vary depending on market conditions. However, the Equirus Wealth SIP calculator can give you a good starting point for setting aside money each month to reach your financial goals.

What are the benefits of using a SIP calculator?

There are many benefits to using a systematic investment plan calculator. Perhaps the most important benefit is that a calculator can help you stay disciplined with your investing. When you have a set plan, it's easier to stick to it, even when the markets are volatile. Below are some other prime reasons to use the SIP calculator:

  1. A SIP calculator can help you to find how much money you need to save to achieve a goal.
  2. A SIP calculator can help you to determine the best time to start saving for a goal.
  3. A SIP calculator can help you to see how much money you will accumulate if you save regularly.
  4. A SIP calculator can help you track your progress towards your savings goals.