Download App
HomeOur StoryMethodologyLearnFAQs

Kotak SIP Calculator

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

Our Kotak SIP calculator helps you see how small monthly investments can benefit your portfolio over time. With the SIP calculator, you only need to enter your total investment amount, your investment horizon, and the expected rate of return per annum. The calculator will use these values to give an approximate value at maturity. This will help you understand how much your investments can grow.

SIPs (Systematic Investment Plans) are a great option for investors, who wish to invest in mutual funds in regular periods. You can start a SIP for as low as ₹500 in any mutual fund scheme and gradually build your wealth over time. SIPs help shield your investments from short-term volatility in the stock market. They are ideal for newbies, as well as, seasoned investors.

How Does The Kotak SIP Calculator Work?

The Kotak SIP calculator works based on the below 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

You wish to invest ₹25,000 every month for 6 years. You expect a return rate of 10%. Here's how the future value of your SIPs will be calculated.

Convert the annual rate of return into a monthly rate: r = 0.10/12 = 0.00833

Calculate the total number of months: n = 6 x 12 = 72

FV = 25,000 x ((1 + 0.00833^72) - 1) / 0.00833
FV = 25,000 x (0.81716) / 0.00833
FV = ₹24,52,461 (approximately)

How Should You Use The Kotak SIP Calculator?

An SIP calculator requires some inputs to calculate the SIP returns. The Kotak SIP calculator uses the below information:

  • You need to enter the monthly installment amount. This is your SIP amount.
  • Then, you have to enter the expected rate of interest.
  • You need to enter the investment duration of your investment.

The calculator calculates the scheme's returns based on the SIP amount, rate of return, and investment period.

Example

Mr. Ian is planning to invest ₹3,000 in a monthly SIP for 8 years. He is expecting a return rate of 12%.

By using the above formula, we can calculate the future value of Ian’s investments.

The first step is to convert the annual rate of return to a monthly rate: r = 0.12/12 = 0.01

The next step is to calculate the total number of months: n = 8 x 12 = 96

FV = 3,000 x ((1 + 0.01^96) - 1) / 0.01
FV = 3,000 (1.59927) / 0.01
FV = ₹4,79,781 (approximately)

Benefits Of Using Kotak SIP Calculator

The Kotak SIP calculator helps you make informed decisions and choose better investments. Here are some key benefits of the Kotak SIP calculator.

  • The SIP calculator is quick and straightforward in estimating the SIP returns of mutual fund schemes.
  • The calculator eliminates the complicated calculation of manually calculating the maturity value.
  • Any investor - be it a beginner or seasoned professional, can use the calculator to check the potential returns of their investments.

Kotak SIP Calculator - Frequently Asked Questions (FAQs)

Do SIPs have a lock-in period?
Open-ended mutual funds do not come with a lock-in period. However, if you invest in ELSS funds through SIP, your funds will be locked in for a period of three years. Other close-ended mutual funds also come with a lock-in period.
Can I withdraw my SIP after some time?
A normal SIP can be withdrawn anytime you wish. However, if it is in an ELSS fund, your funds will be locked in for three years.
Is the SIP calculator free to use?
Yes. The Kotak SIP calculator is free to use.
Can SIPs help me save taxes?
Not all SIPs can help you save taxes. If you start a SIP in an ELSS fund, you can claim tax deductions up to ₹1,50,000 under Section 80C of the Income Tax Act, 1961.