mutual fund sip calculator

Mutual Fund SIP Calculator Return – Systematic Investment Plan

This Mutual Fund SIP Calculator helps is calculating how much SIP Returns you can get based on the expected rate of return in good mutual funds.

You can consider 10% to 12% as good returns in mutual funds over long term of at least 5 years.

Download SIP Returns EXCEL Calculator from here

Download our Android App FinCalC to know more details on SIP

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A Mutual Fund SIP calculator helps you to calculate your profits and maturity amount on your mutual fund SIP investment, based on your deposits, expected rate of return and tenure.


What is Mutual Fund SIP Calculator?

SIP (Systematic Investment Plan) calculator is a calculator that helps you know how much profit you can expect from mutual funds based on your deposits and expected rate of return. This helps you in defining and planning for your goals according to the amount of deposit you can afford to contribute every month.

SIP can be monthly, quarterly, half yearly or yearly as well. The above calculator helps your calculate your SIP returns based on monthly deposits as monthly frequency of deposits are more common.

How mutual fund SIP Calculator works?

It’s very easy to understand how SIP works.

You deposit a predefined amount every month for the tenure that you select and based on the monthly rate of return (derived from expected rate of return), you calculate your SIP returns. We are not talking about past SIP returns here, but future returns.

For example, if expected rate of return is 10% in a year in one of the Best Mutual Funds, we divide this rate of return by 12 to get monthly rate = 10 / 12 = 0.83%. This rate is then multiplied by your balance amount and divided by 100. So let’s say, you deposit Rs. 1000 in first month, our calculation will look like:

 = 0.83% * Rs. 1000 / 100
 = Rs. 8.33

So, Rs. 8.33 is the profit after 1 month based on expected return.

Again you deposit Rs. 1000 via SIP making your Balance as Rs. 2008.33 and after 2nd month, your balance becomes Rs. 2016.67 and so on. You can use above calculator to calculate with your own deposits, rate of return and tenure.

Also, you can watch below video with real mutual fund example:

YouTube player

Watch more Excel Videos Here

Which SIP is Best for 5 Years?

There are many mutual funds that you can invest in. It is important to understand what are the factors you should see while selecting best index mutual funds if your goal is for 5 years or more.

Some of the factors include:

  • Expense Ratio: this is the fees taken by AMC (Asset Management Company) in order to manage your funds. This is yearly fees and should be as low as possible while selecting mutual fund
  • AUM: This is Assets under Management, which means, total amount of money being invested by people in the mutual fund. More money being invested by people, means more trust on this mutual fund. But this is not the case always as some already popular AMC tries to sell specific mutual funds to people who are not aware about mutual fund factors to consider while increasing it’s AUM.
  • Past Returns: Although, past returns does not guarantee future returns of a mutual fund, but it is important to check this stat while selecting best mutual fund for SIP for 5 years.
  • Stocks Portfolio: Another important factor to check is the list of stocks present in mutual fund portfolio. Every mutual fund has a fund manager associated to it who selects list of stocks in order to maximize returns on your investments. If you invest in stocks or have idea about stock investing or fundamental analysis, you should definitely see the list of stocks present in mutual fund’s stock portfolio.

Best Mutual Fund SIP for 5 Years:

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Can you start SIP with Rs. 1000?

Yes you can start SIP with Rs. 1000. Many mutual funds allows you to start SIP from Rs. 500 as well depending on how long you choose the tenure.

It is always better to give time to market and mutual funds while investing for long term, which is opposite to timing the market. Even 8% return per year for next 20 years can give you excellent returns in SIP. You can check this post on SIP returns for next 20 years to see how magic of compounding works in SIP.

And yes, compounding works in SIP and we have proved it using comparison with PPF (Public provident fund) that compounds annually.

ALSO READ: How to Start SIP Online (Demo with SBI)

Is SIP Tax Free?

The returns you get after investing in mutual funds via SIP is not tax free.

You have to pay income tax based on whether the mutual funds you invested in are equity mutual funds or debt mutual funds.

In case of equity mutual funds, LTCG or long term capital gains (gains made after 1 year of holding) are taxed at 10% on profits above Rs. 1 Lac.

For other taxation rules on mutual funds, you can watch this video:

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SIP Excel Calculator for Offline use

I have also made Excel Calculator for offline use in order to calculate your Mutual Fund SIP returns. You can download from below section:

Download SIP Calculator in Excel

Fill below form to download SIP Returns Calculator in Excel:

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How to Calculate SIP returns for next 10 years?

You can easily calculate SIP returns for next 10 years either by using the online SIP calculator above, or you can also use the excel calculator I have provided above.

Using Online calculator: Here is how your SIP returns will look like in 10 years:

Online SIP Return Calculator results
Online SIP Return Calculator results

Using Excel calculator: Here is how your SIP returns will look like in 10 years:

SIP Returns Calculator using Excel
SIP Returns Calculator using Excel

Difference between SIP and Lump sum Investment

As mentioned above, SIP is a systematic way to invest in a mutual fund or any other investment option, whereas, lump sum is another way to invest by investing your entire money in one go.

While doing lump sum investing, you take the risks with your lump sum amount in short term since market can fall in short term. So if you can take that risk and see your returns as negative in your portfolio, than you can invest lump sum amounts.

But as we all know, with high risks comes high rewards as well, so lump sum investing gives you better returns over long term compared to SIP, since you buy more mutual fund units when investing via lump sum compared to SIP investments.

SIP vs Lump sum what is better

Best strategy is to invest via combination of both. Start SIP in a regular way, and invest lump sum amount if you have gathered, in order to take advantage of fallen market to buy more mutual fund units, while investing for at least 5 years or forever!

ALSO READ: SIP & Lump sum returns Calculation

Some more Reading:

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Income Tax Calculator App – FinCalC

For Income Tax Calculation on your mobile device, you can Download my Android App “FinCalC” which I have developed for you to make your income tax calculation easy.

What you can do with this mobile App?

  • Calculate Income Tax for new FY 2022-23 and previous FY 2021-22
  • Enter estimated Investments to check income tax with Old and New Tax Regime
  • Save income tax details and track regularly
  • Know how much to invest more to save income tax
  • More calculators including PPF, SIP returns, Savings account interest and lot more
Download Income Tax Calculator APP from play store
Download Income Tax Calculator APP from play store

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