How to Use the SIP Calculator
- Select the Calculation Mode: Choose whether you want to calculate the maturity amount, required monthly SIP, investment duration, expected return, or annual step-up percentage.
- Enter Monthly Investment: Input the amount you plan to invest every month.
- Specify Duration: Enter the investment period in years and months.
- Expected Annual Return: Provide the anticipated rate of return for your investments.
- Target Amount: If calculating SIP, duration, return, or step-up, enter your desired target corpus.
- Annual Step-Up (Optional): You can enable the step-up checkbox to include an annual increase in your monthly investment.
- Calculate: Click the calculate button to see results, growth chart, and yearly investment table.
The calculator will automatically determine the missing value based on your input and show a projection of how your investment grows each year, including invested amount, interest earned, and total value. The growth chart highlights the year when the target is reached.
Example Scenario
Suppose you want to invest 10,000 per month for 10 years with an expected return of 12% per annum. You also plan to increase your monthly investment by 5% each year. Using the SIP calculator, you will see:
- Estimated maturity amount after 10 years
- Year-wise breakdown of invested amount, interest earned, and total corpus
- Visualization of investment growth over time with the target milestone marked
By adjusting the inputs, you can answer questions such as:
- How much should I invest monthly to reach a target amount in a given period?
- How long will it take to achieve a financial goal with my current SIP?
- What is the required annual return to reach a desired corpus?
- What annual step-up percentage should I maintain to meet my investment objectives?
The SIP calculator is a practical tool for both beginner and experienced investors. It helps you make informed investment decisions, track your progress, and plan for long-term financial growth. Using this tool regularly can ensure that your investments stay aligned with your goals and market expectations.