SIP Calculator – Calculate SIP Fund Returns Online

SIP stands for Systematic Investment Plan. It is a method of investing in mutual funds where individuals regularly invest a fixed amount at regular intervals, typically monthly or quarterly. A SIP calculator online comes to the rescue to calculate the potential return on SIP investments. 

An SIP Calculator is a financial tool that helps investors estimate the potential returns on their mutual funds made through SIP investments. However, the effective returns from a mutual fund scheme differ due to various factors. The SIP calculator doesn’t include details about exit loads and expense ratios (if any).

To give investors an estimate of the potential returns that they can expect, a SIP Calculator requires inputs such as: 

• Monthly investment amount
• Investment tenure 
• Expected rate of return

Based on these inputs, the calculator computes the future value of the investment, taking into account the power of compounding.

1. Estimates Potential Returns

A SIP calculator India uses key parameters such as the investment amount, SIP duration, expected rate of return, and frequency of investments to provide accurate estimations.

2. Helps in Long Term Planning

The SIP investment calculator helps you plan for long-term financial goals, as it provides insights into the required investment amount and duration needed to achieve these goals.

3. Compares Investment Options

With an online SIP calculator, you can evaluate and compare different mutual fund options to determine which one best aligns with your financial objectives and provides the most favourable returns.

By using the smallcase SIP MF calculator, you can effortlessly calculate your SIP returns with just a few clicks

With our SIP returns calculator, you can get an estimate of your returns under two circumstances: 

Case 1 –  If You Know the SIP Investment Amount

In this scenario, you need to provide 3 key inputs: 

• Your investment amount 
• Expected return
• Time period 

Once you enter these details on the SIP return calculator, you can get an estimate of the potential SIP investment returns that you will get after the completion of your investment tenure. 

Case 2 – If You Know Your SIP Goal Amount 

In this scenario, you will need to provide: 

• Goal amount 
• Expected return
• Time period 

Once you input these details, you can get an estimate of how much amount you need to invest every month to reach your goal through the SIP investment planner.

In the case of one time investment, you can also follow the similar steps as mentioned above.  However, to calculate returns on your lumpsum investment, all you need to do is click on the lumpsum button placed beside the SIP button. Once you click on it, the one-time smallcase lumpsum investment calculator will open, where you can input your details and get results accordingly.

The SIP investment calculator provides a breakdown of your SIP investment’s future value, presenting two key figures: the estimated maturity value they can get on their investment and the interested earned. Therefore, you can use the mutual fund calculator SIP as it offers a clear projection of how their investments will develop over a given period.

However, let’s have a look at the SIP calculation formula to calculate SIP returns. 

M = P × ({[1 + i]^n – 1} / i) × (1 + i)

The variables in this SIP calculator formula represent the following: 

Let’s take an example for the SIP formula. Suppose you decide to invest ₹10,000 each month starting today for the 1 year. You don’t mind an aggressive strategy so you settle on a 12% interest rate over the next 1 year. 

When you put the following data in the mutual fund SIP interest calculator, you’ll get the following results within mins. 

Invested amount after 1 year: ₹1,20,000

Expected gain: ₹8,093

Total value: ₹1,28,093

You can also have a look at maturity values for different time periods on yearly SIP calculator online.

SIP involves investing a fixed amount at regular intervals, helping to average out market volatility, while lumpsum investment is a one-time investment that carries higher market timing risk. 

Here we have listed the potential differences between SIP vs Lumpsum investment. 

• Holding Period of the Investment: For equity mutual funds, gains from SIP investments held for more than 12 months are considered long-term capital gains (LTCG) and taxed at 12.50% on gains exceeding ₹1.25 lakh in a financial year. Gains from equity funds held for less than 12 months are considered short-term capital gains (STCG) and are taxed at 20%.
• Debt Mutual Funds: For debt funds, gains from SIPs held for less than 36 months are considered short-term and are taxed as per your income tax slab. Gains from investments held for more than 36 months are considered long-term and taxed at 12.5% without indexation benefits.
• Dividends: Dividends received from mutual funds are added to your income and taxed as per your applicable income tax slab.
• Tax-Saving Mutual Funds (ELSS): Investments in Equity Linked Savings Schemes (ELSS) are eligible for a tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act, but gains are still subject to LTCG tax if held beyond the lock-in period of three years.

An SIP calculator mutual fund is a helpful tool for planning your investments effectively. Whether you’re using a monthly SIP calculator or a yearly return calculator SIP, these tools provide valuable insights into potential returns and help you set financial goals. By leveraging these calculators, you can make informed decisions, stay disciplined with your investments, and work toward achieving your long-term financial milestones.

The results provided by this calculator are for illustrative purposes only and are based on the inputs provided by the user, including the monthly or lump sum investment amount, expected rate of return, and the investment time period.

The calculator assumes a constant rate of return and does not account for market fluctuations. Therefore, the actual future value of the investment may differ from the estimated value.

smallcase makes no representations or warranties regarding the accuracy of the calculator’s results and is not responsible for any errors, omissions, or inaccuracies. The calculator does not consider taxes, fees, or other factors that may affect investment performance.

This calculator and the results generated are not intended as a solicitation to invest or as a recommendation for any particular investment product. Users are encouraged to consult with a qualified financial advisor before making any investment decisions.