Projected SIP returns for various time durations. [ @rate ]
Duration SIP Amount (₹) Future Value (₹)


What is SIP?

SIPs, or Systematic Investment Plans, are a common investment method in the world of mutual funds and finance. Individuals can use SIP to invest a preset amount of money at regular periods, usually monthly, in a single mutual fund or a group of mutual funds. The SIP Calculator is a tool that allows you to estimate the future value of your monthly investments.

What is SIP Calculator?

The SIP calculator is an online tool that uses an estimated rate of return and the investment’s future value after a predetermined number of years to determine the return on your mutual fund investment made through SIP.

The manual computation may require some labor because SIPs usually require a monthly payment. The returns for each of these payments will vary as well because the holding period for each monthly contribution would vary at any given moment.

How an SIP calculator is useful?

Investors may essentially split the future value of their Systematic Investment Plan investment into two parts using the calculator: the principal and the expected return on investment.

Therefore, assuming a specific rate of return and SIP contribution, you may use the SIP return calculator to receive an idea of how your investment will increase over a given holding term.

Although it isn’t stated clearly, you can additionally account for the impact of inflation when using the online SIP calculator. Using your goal real rate of return and the current rate of inflation, you may manually calculate the nominal rate of return you would anticipate from your investment. To begin investing in mutual funds, all you have to do is enter your rate of return into the calculator using the manually estimated rate.

Let’s examine a few examples to determine how you might benefit from this calculator.

How does the SIP Returns Calculator work?

Even though you can always locate an online SIP calculator to conduct the calculations for you, it’s always a good idea to know where these figures originate from so you can feel more sure about your investing approach.

The SIP formula used by SIP calculators is as follows:

    • FV is equal to P x {[(1 + r)n – 1] ÷ r} 1 + r


Variable Description
FV Future value of investment
P Principal contributions each month
r Expected rate of return (per month)
n Number of contributions towards the principal

For instance, if you want to calculate the FV for a SIP with ₹1,000 monthly contributions for two years and an expected rate of return of 12%, this is what the formula would look like for you:

FV = 1000 x {[(1 + 0.01)24 – 1] ÷ 0.01} x (1 + 0.01)

Note that the r is 0.01 since our expected rate of return is 12% per annum, which translates to 1% per month.

How to use gift nifty SIP calculator?

To get started, simply input the amount you wish to invest each month (the amount you started the SIP with), the number of years you want to stay invested, and the projected rate of return.

The calculator will display the approximate amount you can withdraw at the end of your investment term as soon as you enter the value.

Types Of SIPs

The various SIP kinds include:

    • Regular SIP

    • Top-up SIP

    • Flexible SIP

    •  Trigger SIP

    • Perpetual SIP

    • Multi SIP

    • SIP with Insurance

Regular SIP

Among all SIPs, regular SIPs are among the most widely used. In this case, you make regular, fixed-amount investments for the selected investment period. Your SIP investment can be made on a monthly, bi-monthly, quarterly, or half-yearly basis. To achieve your target corpus, all you have to do with this most basic form of SIP is practice discipline. You can build up a sizable corpus with modest, consistent contributions by participating in regular SIPs.

Top-up SIP

Step-up SIPs are another name for top-up SIPs. In this case, your SIP contribution is progressively increased. For example, if your current SIP amount is Rs 5,000 per month and your annual top-up rate is 10%, your SIP amount will be Rs 5,500 the next year. Therefore, you can continue to increase your SIP annually with top-up SIPs. Top-up SIPs are designed to help you boost your SIP amounts in proportion to your yearly raises.

With top-up SIPs, you can invest progressively more each year and, over the course of the program, build more wealth than you would with normal SIPs.

Flexible SIP

You have the ability to alter your SIP investment with flexible SIPs. This modification may pertain to the SIP frequency or amount. You can inform your fund houses of any modifications you would like to make to your SIP terms, but keep in mind that you must notify them at least one week before the next SIP due date.

With a flexible SIP, you can adjust your contributions based on changes in the market. For instance, you can lower your SIP while markets are rising; on the other hand, you can raise your SIP when markets are falling. The same goes for income changes; you can adjust SIPs to reflect any changes in your income.

SIP trigger

Investments in trigger SIPs only take place in response to predetermined market events. A predefined NAV level or a positive market movement could be this particular occurrence. In order to benefit from this kind of SIP, you need to be aware of the market. Therefore, only seasoned investors with the necessary time and understanding should consider this SIP. This SIP is not suitable for investors who like to take a hands-off approach.

Permanent SIP

Regular SIP and perpetual SIP are identical, however perpetual SIP does not have a set investment term. Until you ask the fund firm to terminate your SIP, you are required to continue investing in this kind of SIP.

You can benefit from long-term compounding with this SIP, and you won’t have to worry about SIP renewals. On the other hand, you can always redeem your investment.

Multi SIP

With a multi-SIP, you can use a single SIP to invest in several of the fund house’s schemes. For instance, Rs 1,250 will be allocated to each of the four schemes in a multi-SIP that you start with Rs 5,000.

SIP with Insurance

This combines the insurance and SIP benefits. Your money is invested in mutual funds, and your fund company provides you with a life insurance policy.

If the investor passes away suddenly during the investment period, this insurance policy pays the nominee a lump sum. Depending on the amount invested through SIP, the coverage amount may change.

Benefits of the SIP Calculator

Returns on investments placed in market-linked products, like mutual funds, are not assured. Therefore, it may be challenging for investors to determine how much their money will increase in the future or how much they must invest in order to meet their financial objectives.

In addition to assisting with these issues, the gift nifty SIP Investment Calculator offers investors the following significant benefits:

    • Calculate Investment Future Value Instantaneously: The gift nifty SIP Calculator saves you time and headaches by providing accurate, instantaneous results.

    • Easy-to-use SIP Calculator: Our SIP Calculator is a user-friendly tool that can be used by anyone to easily assess their investment needs. It is absolutely free and unlimited.

    • Encourage Well-Informed Investing Decisions: With the SIP Calculator, you may efficiently plan your investments and easily reach your financial objectives.

    • Find the Best Investment Possibilities: Unlike others, our calculator suggests funds that match your objectives in addition to projecting future values and monthly investments.

    • At Your Fingertips: Results Adjusted for Inflation Easily receive inflation-adjusted investment results with a single button click to combat rising costs—a feature that other SIP calculators do not offer.

Five Common Mistakes You Should Be Careful Of

There are many good things about SIPs, but it’s important to know about the myths that could get in the way of your investing journey. Here are five mistakes that people often make when they invest in a SIP in India.

    • Not planning your financial goals: If you don’t have clear goals, it’s hard to figure out the right amount to invest, how long to invest for, and how to divide up your assets for your SIP.

    • Lack of study: Making bad investment choices can happen if you don’t do thorough, independent research before you invest. Not doing enough study can lead to bad investments.

    • Trying to time the market: Through rupee cost average, SIPs are meant to lessen the effect of market volatility. It’s hard to try to time the market by looking at short-term changes. It might be worth it to keep your eye on the long run.

    • Investments that aren’t being watched: Setting an amount to spend and then forgetting about it is not the same thing as a SIP. By reviewing your investment regularly, you can keep an eye on it and get the most out of your SIP.

    • Ignoring advice from professionals: It is very important to get skilled help with your SIP. Financial advisors can help you make smart business decisions that help you reach your goals. Their knowledge can help you get the most money back.

Investors can get more out of SIP if they don’t make these usual mistakes. You should be patient and think about the long run. This will help your SIP work better for you. Remember that there are market risks when you buy in mutual funds. It is important to do a thorough, independent study. Also, talk to a professional before you decide to spend any money.

FAQs About SIP

How much can I invest in a SIP?

There is no limit to the amount you can invest in a SIP. Minimum amount is even as low as 100 rupees.Can I modify my SIP amount?

Can I modify my SIP amount?

Yes, you can use the SIP investment tool at any time to see how much money you’ve made and to change the amount of your SIP.

Can I renew a SIP?

It is possible to have a SIP automatically renewed. You can also turn off this auto-renewal tool from the company.

Can I pause my investments in an SIP?

Yes, mutual fund companies also let you put your SIP investments on hold for a certain amount of time.

Are SIPs similar to mutual funds?

SIP is often confused with mutual funds or seen as something different from them. SIP is just a way to invest; it’s not a fund, a plan, or a stock. It’s a way to put money on a regular basis in any fund or scheme you choose.

Are SIP investment tax-free?

No, most SIP investment returns are taxable. However, SIP investments in tax-saving mutual fund schemes, i.e., ELSS Mutual Funds, are eligible for tax deduction under Section 80C of the Income Tax Act.