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IDBI SIP Calculator

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%
%
Yr
Invested amount₹ 6,00,000
Estimated returns₹ 5,61,695
Total value₹ 11,61,695
Invested amountReturns

Our IDBI SIP calculator will show you how small investments made at regular intervals can yield better returns over a long period of time. The calculator is a hassle-free financial tool that guides investors as to how much money they must invest in an SIP to achieve their goals in the future. The calculator can help investors get an approximate figure for returns.

SIP (Systematic Investment Plan) has been increasing in popularity, as more and more investors have begun investing their money in mutual funds through SIPs. With SIPs, you can invest a fixed amount in a scheme of your choice at regular intervals for a pre-defined tenure. This can help investors build a significant corpus over a long period of time.

How Does The IDBI SIP Calculator Work?

You can calculate the future value of your investments using the below SIP calculator formula.

FV = P x ((1+r)^n - 1)/r)

where:

FV is the future value of your investment
P is the monthly investment amount
r is the monthly interest rate divided by 12
n is the total number of months or the investment duration

Example

Let's say you are looking to build a retirement fund with mutual funds. You are planning to invest ₹10,000 every month and are willing to stay invested for 20 years. You are expecting to earn an annual rate of return of 8%. Here's how much you will earn after 20 years.

Converting the annual return rate to a monthly rate: r = 0.08/12 = 0.00667

Calculating the total number of months: n = 20 x 12 = 240

FV = 10,000 x ((1 + 0.00667^240) - 1) / 0.00667
FV = 10,000 (3.93071) / 0.00667
FV = ₹58,93,118 (approximately)

How Should You Use The IDBI SIP Calculator?

The IDBI SIP calculator is pretty simple to use. All you have to do is enter the below information to calculate the maturity amount.

  • Enter the monthly amount you wish to invest in mutual funds through SIP.
  • Type in the expected rate of return that you wish to attain.
  • Finally, you have to enter the number of years you will stay invested.

After you enter the above details, the calculator will tell you the total invested amount, interest earned, and total maturity value.

Example

Mr. Kumar wants to buy a car in 5 years. He is planning to invest ₹30,000 every month and is expecting to earn a return rate of 10%. Here's how we will calculate his maturity amount.

The first step is to convert the annual return rate to a monthly rate: r = 0.10/12 = 0.00833

The next step is to calculate the total number of months: n = 5 x 12 = 60

FV = 30,000 x ((1 + 0.00833^60) - 1) / 0.00833
FV = 30,000 (0.64498) / 0.00833
FV = ₹23,22,857 (approximately)

Benefits Of Using IDBI SIP Calculator

The IDBI SIP calculator is a beneficial tool in the following ways:

  • The SIP calculator offers close enough results that help the investor invest more confidently.
  • The calculator is pretty easy to use, and the maturity value will be calculated within a few seconds.
  • The calculator is perfect for first-time investors as it gives accurate results, allowing them to invest freely.

IDBI SIP Calculator - Frequently Asked Questions (FAQs)

What is the minimum investment to make in SIP?
The minimum investment amount varies from one scheme to another. Most SIPs have a minimum investment amount of ₹500 or even ₹100 in some schemes.
What happens if I miss an installment date of SIP?
Most of the SIPs are flexible in nature and no penalty is levied if an installment date is missed. You can continue to pay your installment from the next payment date to keep the SIP active.
Do SIPs have a lock-in period?
Open-ended mutual funds do not come with a lock-in period. However, ELSS funds come with a lock-in period of 3 years. Other close-ended mutual fund schemes also come with a lock-in period.