SIP Calculator

Ready to start your SIP?

What Is A SIP Calculator?

A Systematic Investment Plan or SIP calculator is a financial tool used to calculate the wealth you can create by investing in SIP mutual funds. A SIP calculator is basically going to measure compound interest.

It is in the simplest words a compound interest calculator. Investments like mutual funds go through periods of ups and downs based on the state of the market and the stocks or bonds in their portfolio.

A SIP allows you to invest across these periods of ups and downs in the market. This leads to a phenomenon called rupee cost averaging where a SIP allows you to:

Buy more units when the market is down
Buy fewer units when the markets are high  

In the process, you may end up getting better returns than someone who just invested a lump sum in either the up or down market. This is reflected in the SIP returns.

How Does A SIP Calculator Online Work?

An online SIP calculator ensures that you don’t have to pick up a pen and paper (or Excel sheet) to use the SIP returns formula. Instead, it uses the preloaded formula to help you visualise your returns.

Parameters Used

  1. Investment tenure
  2. Expected rate of return
  3. Investment frequency

Formula to calculate SIP

M = P × ({[1 + i]^n – 1} ) × (1 + i)/i

  • M - Estimated return amount
  • P : Monthly investment amount
  • n : Number of SIP payments
  • i : Periodic rate of interest.

How To Use Cube Wealth SIP Calculator?

The Cube SIP calculator is simple and easy to use because it uses a preloaded SIP formula so that you can focus on visualizing your returns than doing complex mathematics.  

You have the option to input any investment amount that you desire in the field that says “How much will you invest monthly?” and then, you can use cool sliders to select the investment duration and returns.

  • Enter investment amount
  • Set investment duration
  • Selected expected returns (%)
  • Look at the results
  • Start a SIP

Love what you see and want to get started? Download the Cube Wealth App.

How Can A SIP Return Calculator Help You?

A SIP calculator can help you visualize the returns that you can potentially earn across time. Apart from that, a SIP calculator can help you in these ways:

1. Understand The Effort Required

A Systematic Investment Plan (SIP) requires you to invest diligently, generally, every month. The calculator will give you a direct snapshot of the monthly investments you’ll have to make in a SIP.

2. You + Investments = Goals

The Cube SIP calculator can help you determine how much you would need to invest to get to your goals.

3. Become A Disciplined Investor

Visualising your returns with the SIP calculator will motivate you to become a disciplined investor. You’ll have to ensure that there’s enough money in your bank account for the SIP to go through every month.

4. Wealth Coach Support

There’s another benefit to using Cube’s SIP calculator. You can contact a Cube Wealth Coach after using the SIP calculator to know how you can start a SIP in handpicked mutual funds.

Love what you see and want to get started? Download the Cube Wealth App.

How Can A SIP Return Calculator Help You?

Love what you see and want to get started? Download the Cube Wealth App.

Advantages Of Using Cube SIP Calculator

  • Cube SIP Calculator is simple and easy for beginners to use
  • It will help you visualize probable returns on your SIP mutual
    fund investments
  • You’ll find out the advantages of investing consistently in solid SIPs
    across market ups and downs
  • The SIP calculator is quick and displays results in real-time

Love what you see and want to get started? Download the Cube Wealth App.

Types Of SIPs Available In India

There are 4 broad types of SIPs that you can choose from in India. There’s a top-up SIP that allows you to add more money to your existing SIP investments. A flexi SIP allows you to increase or decrease your SIP payments.

Then there’s a perpetual SIP in which, as the name suggests, you can invest till perpetuity or 2099. Last but not least, there’s a trigger SIP that lets you start a SIP or add additional SIP payments based on triggers like a particular NAV or index level.

Cube gives you access to one more SIP. It’s known as a SuperSIP and it lets you adjust or skip your SIP payments. SuperSIP is only available on the Cube Wealth app. Here’s a snapshot of all 5 SIP types in India:

  • Top-up SIP: Add an additional amount on top of your existing SIP
  • Flexi SIP: Increase or decrease future SIP payments
  • Perpetual SIP: Invest in SIPs perpetually (till 2099)
  • Trigger SIP: SIP investment goes through after a trigger

Love what you see and want to get started? Download the Cube Wealth App.

FAQs On SIP Return Calculator

  1. How much can I invest in a SIP?

    In India, you can start a SIP in mutual funds for as low as ₹500. However, most AMCs have a different minimum amount for each category of SIP mutual funds, some as high as ₹5,000.
  2. How is SIP interest calculated?

    Ans. A Systematic Investment Plan (SIP) in mutual funds gives you compound interest. This simply means that the returns are reinvested and earn returns on top. This is the formula to calculator SIP returns:

    M = P × ({[1 + i]^n – 1} ) × (1 + i)/iM - Estimated return amount

    P : Monthly investment amount
    n : Number of SIP payments
    i : Periodic rate of interest.

    Too complex? Use Cube’s SIP calculator up top!
  3. Can SIP make you rich?

    Ans. The right SIPs in mutual funds can help you create solid long term wealth. SIPs are market-linked investments that are, on average, known to outperform inflation and traditional investments like FDs.
  4. Which is better FD, RD, or SIP?

    Ans. While this depends on your investment goals and risk appetite, the right SIPs in top mutual funds can help you generate 6-12% returns over 5+ years. That’s relatively better than FD and RD returns.
  5. Are SIPs similar to mutual funds?

    Ans. A Systematic Investment Plan (SIP) is not an asset like mutual funds. But, it is a way to invest in mutual funds.
  6. What is the maximum tenure of a SIP?

    Ans. There are categories like Perpetual SIPs that allow you to invest perpetually (until 2099). Long story short, the tenure varies based on the AMC but can range from 1 year to 70+ years.
  7. Can I modify my SIP amount?

    Ans. In most cases, you cannot modify your SIP amount unless you invest in Cube’s SuperSIP that allows you to increase or decrease your SIP amount or even skip SIP payments.
  8. Can I pause my SIP investment anytime?

    Ans. Yes, you can pause your SIP investments for 1 to 6 months. It depends on the AMC’s guidelines. On Cube, you can pause and re-start your SIP whenever you want with the SuperSIP option.

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