SBI SIP Calculator
Our SBI SIP (Systematic Investment Plan) Calculator will help you understand how much you would need to invest to accumulate your desired corpus. The calculator will tell you the investment amount and this will help you plan your finances properly. The tool is easy to use and gives error-free results.
With SIPs, you can invest a fixed amount of money at regular intervals, be it every week, every month, or every three months. SIPs are pretty convenient for investors as they can start investing in mutual funds via SIPs for as low as ₹100.
How Does Our SBI SIP Calculator Work?
The calculator works on the below formula:
In the above formula:
FV is the amount you receive upon maturity
P is the amount you invest through SIP each month
r is the monthly rate of return, which is the assumed annual return divided by 12
n is the investment duration in months
Each month’s instalment is counted at the start of the month, which is why the formula ends with × (1 + r).
Example
If you wish to accumulate a corpus of ₹5 lakhs in 10 years at an expected return of 12%, you would need to invest over ₹2,152 every month. When you keep investing for 10 years, even without increasing your investment amount, you will be able to build a corpus of ₹5 lakhs.
Disclaimer: This example is meant for educational purposes only.
How Should You Use SBI SIP Calculator?
The SBI SIP calculator gives you the maturity value of your investments in just a few clicks. All you need to do is type in your monthly investment, the expected annual return rate, the estimated annual inflation rate, and the number of years you will stay invested in the scheme. Once you give these numbers to the calculator, the Koshex SBI SIP calculator will show your total investment amount, estimated returns, and the total wealth that will be generated by your investment.
Example
Mr. Anand wishes to buy a car in three years. He is planning to invest ₹15,000 every month for 3 years and assumes an annual return of 12%. So, here’s how the values will be calculated through the calculator.
Firstly, convert the annual rate of return to a monthly rate: r = 0.12/12 = 0.01
The total number of months: n = 3 x 12 = 36
After putting the values in the formula:
FV = 15,000 × [((1 + 0.12/12)^36 − 1) ÷ (0.12/12)] × (1 + 0.12/12)
FV = 15,000 × 43.50765
FV = ₹6,52,615 (approximately)
So, if Mr. Anand invests ₹15,000 every month for 3 years with an expected annual return of 12%, his SIP investments could potentially grow to approximately ₹6,52,615.
Benefits Of Using SBI SIP Calculator
Our Koshex SBI SIP Calculator will give you the below benefits.
- You can plan your finances based on the estimated returns. As you will know how much you have to invest every month, it will be easier for you to do your financial planning and budgeting.
- You can save a lot of time by getting the result in a matter of a few seconds. Manual calculations take up a lot of time and they can result in you making mistakes.
- It does the maths for you, so you avoid the mistakes a manual calculation can bring.