Selvayana: SIP calculatorEducational estimate, not investment advice. Selvayana is not registered with SEBI as an Investment Adviser or Research Analyst. Figures use the assumptions shown and are not predictions.
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Detailed breakdown
SIP calculator: a quick guide
What is a SIP?
A systematic investment plan (SIP) puts a fixed amount into a mutual fund every month. Because each instalment buys units at that month’s price, you invest steadily through market ups and downs instead of trying to time them.
How this calculator works it out
Each instalment is invested at the start of the month and grows at the monthly equivalent of your assumed annual return. Your existing investments grow at the same rate. A step-up raises the instalment once a year.
Monthly rate i = (1 + annual return)1/12 − 1 Value of a flat SIP = P × [((1 + i)n − 1) ÷ i] × (1 + i)
An example
₹5 lakh already invested plus a ₹10,000 SIP that rises 10% a year, at an assumed 12% for 15 years, grows to about ₹1,10,11,501. You put in ₹43,12,698; the rest is estimated growth. At 6% inflation that is about ₹45.95 lakh in today’s money. The yearly step-up alone adds about ₹35.15 lakh compared with a flat SIP.
Good to know
Some calculators divide the annual return by 12. That gives a slightly higher figure than the monthly-equivalent method used here.
Mutual fund returns are not guaranteed and vary from year to year. Try a lower return as well as a higher one.
Look at the value in today’s money: it shows what the corpus will actually buy.
How it's calculated
Your current investments and each monthly SIP instalment compound every month at the monthly equivalent of the annual return, with each instalment invested at the start of the month. If you add a yearly increase, the SIP amount goes up by that percentage at the start of every new year. The value in today's money divides the final amount by inflation over the same period.
Common questions
Why does this ask for my current investment value?
Most people already have some money invested. Leaving it out understates your final corpus and makes you think you need a bigger SIP than you do.
What return should I assume?
There's no right number. Returns from market-linked investments vary widely from year to year and aren't guaranteed. Try a lower and a higher figure and compare the results shown.
What is a step-up SIP?
A step-up SIP raises your instalment by a fixed percentage each year, usually in line with salary hikes. Even a 5% to 10% increase makes a large difference over long periods.
For awareness only. Not investment advice or a recommendation to buy, sell or hold any security or product. All figures are estimates based on the inputs and assumptions shown; actual results will differ and may be much lower. No return is guaranteed. Investments in securities market are subject to market risks. Read all related documents carefully before investing. Consult a SEBI Registered Investment Adviser before acting. Printed from Selvayana on .