SIP Planner: Plan and calculate the future value of your SIP investments
Updated : Jul 03, 2018, 11.44 AM IST
The SIP planner calculator will help you to estimate the future value of your SIP investments. The calculator computes the future value based on inputs provided by you such as expected returns, investment amount, and others.
Who can use SIP planner tool?
Any individual who is planning to invest in mutual funds through SIP can use this calculator to determine the future value of his/her investments. Even if you are already investing in mutual funds through SIPs, you can use the calculator to determine the future value of your on-going investments.
How to use this calculator
To use this calculator, you are required to provide the following details:
a) How much money do you want to invest, i.e., monthly investment amount
b) Duration of investment, i.e., how long you will be investing
c) Frequency of investment, i.e., monthly, quarterly or yearly
d) Percentage of expected returns, i.e., how much returns do you expect from your investments.
How the calculator works
The SIP planner calculator uses the power of compounding principle to calculate the future amount of your SIP investments. The longer you stay invested, the longer you gain.
To understand this, let us take an example. A monthly investment of Rs 5,000 for 10 years at an expected rate of return of 12 per cent will earn you Rs 11.61 lakh. The gains made by you in this scenario will be approximately Rs 5.61 lakh (Rs 11.61 lakh minus 5000*10*12).
Similarly, if you stay invested in the scheme for 15 years, the future amount of your investment will be Rs 25.22 lakh, vis-a-vis an invested amount of Rs 9 lakh (i.e. 5000*15*12). By investing for five years more, the gains from your investment has almost doubled.
What does the calculator show?
Based on the information provided by you, the calculator calculates the amount you will get from your SIP investments. If you have linked the investment to your future goals such as retirement, child's education or buying a house, then the future amount can suggest whether you need to make additional savings, if any, to fulfil the goal.