How SBI SIP Calculator Works?
Our SBI SIP Calculator is designed to help you with your smart financial planning. Here’s a guide showing how our SBI SIP Calculator works:
- Choose the type of investment: You can select “SIP” if you want to fund a monthly fixed amount or you can select the “Lumpsum” option to make a one-time investment.
- Adjust monthly Investment: Use the slider and drag it to the amount you desire to invest every month. You can start with just ₹500 to a huge ₹500,000.
- Choose Expected Annual Return (p.a): Similarly, you can adjust the slider to choose your expected rate of return per annum from 1% to 100%.
- Decide Time Period: Now, adjust the slider and decide how much time period you want to make your investment. You can start from as short as 1 year to 40 years.
- Tap on “Calculate”: Once you have adjusted your preferences accordingly, tap the “Calculate” button.
- Check Accurate Results: You can now check the accurate results, including investment metrics, the total amount invested, the total wealth gained, as well as the final wealth value. Also, an investment distribution chart will show how much you have invested with total returns. Moreover, a year-wise growth graph and an overall summary will show your investment results nicely.
Calculate SBI Mutual Fund SIP Returns – SBI SIP Calculator
The mutual fund space in India is growing, and there’s no doubt about this. In just ten years, the industry witnessed a growth of almost fourfold: from ₹5.83 trillion to a huge ₹24.25 trillion. This overall figure still remains significantly less than the other larger economies in the world but is a good sign as more and more Indians are discovering and getting interested in the potential of mutual fund investment.
Moreover, mutual funds are very difficult to understand for new investors who don’t know much about finance. They usually have doubts like “How much will I earn?” or “How much will this investment be worth in five years?” questions are both justified and common. And that’s where our SBI SIP Calculator can become a game changer for your doubts. It helps you to get a clear overview of the expected return on your SBI mutual fund SIPs in the easiest way possible, so you can plan better and invest smarter.
How Can SBI Mutual Fund SIP Calculator Help You?
SIP investment in mutual funds is one of the best ways to generate wealth over a long period. Like an RD, SIPs also allow you to invest a specific amount regularly mostly every month– in a mutual fund scheme of your choice. SIPs are more tactical than lumpsum-driven investments and also have lower risk, courtesy of rupee cost averaging over time. But calculating by yourself is a bit difficult and it can get complicated to know how much your SIP will grow with time. That’s where our SBI Mutual Fund SIP Calculator turns out to be a game-changer.
- Instant Results:SIPf return calculations require difficult formulas and compounding. Our SBI SIP calculator provides you with speedy estimates in seconds, saving you valuable time.
- No Specialist Needed: You really don’t have to be a specialist in finances to understand and use our calculator. It is a tool that needs to meet all users from beginners to experienced investors.
- Plan Finances Smartly: Now that you have a close to exact idea about returns, you can plan your life events concerning wealth creation, future dreams or retirement.
- Accurate Return Estimates: Just like the mutual fund returns would fluctuate based on the market conditions, the tool too will give you the most relevant and close estimate based on the information you give (expected return rate, time period and your monthly investment).
The Formula To Determine SIP Returns
Our SBI SIP Calculator is a smart and effective tool that will assist investors in getting a clear image of how much their investments will tend to increase over some time. It is completely dependent on a formula that is quite difficult to understand as a beginner but– you won’t have to do any mathematics on your own. Our SBI SIP Calculator is here for the rescue. The formula to determine the SIP Return is:
- FV = [P × R × (1 + i)ⁿ – 1 ÷ i] × (1 + i)
Now let’s understand the meaning of each variable in this formula to be more clear:
- FV = Future Value
- P = Monthly investment amount
- i = Monthly interest rate
- R = Expected rate of return
- n = The total number of SIP payments
It is very evident that doing such calculations is not possible for every investor, especially for beginners; even for the experienced ones, this can be very time-consuming. Moreover, the calculations can have errors at times. This is why our SBI SIP Calculator was created in the first place: to help you get an accurate idea of what you’re dealing with at the click of a button.
Let’s understand better with an easy example: If you invest ₹2,000 a month for 2 years at an expected annual return of 12%. You will immediately be presented with the results in the form of investment metrics, distribution chart, growth graph as well as a clear summary.
- Total Investment: ₹24,000
- Estimated Returns: ₹25,619
- Total Wealth Gained: ₹1,619
How To Use SBI SIP Calculator Online?
Our SBI SIP Calculator is available at https://sip-calculator.in/beta/sbi-sip-calculator/ where you can get instant and accurate results without doing much. Just adjust the amount you want to invest every month, choose the desired rate of return and the number of years to hold the investment. It all happens within a second when you press the ”Calculate” button.
Advantages of using the SBI SIP calculator
Here are some advantages of using our SBI SIP calculator as a smart investor:
- With the use of accurate algorithms to estimate your returns, the calculator can help you make more informed decisions on investments.
- We have a unique link for every calculation, which makes it easy to share and access it afterwards.
- We offer a detailed result that has it all: the investment metrics, distribution chart, year-wise growth chart, as well as a simple summary.
- There’s no need to perform the difficult calculations by yourself. Within a second you can get your needed answers.
- It’s a free online platform, so you can access it on your phone, tablet or desktop, whenever you want.