Mutual Fund SIP Calculator: See how Rs 5,000 to Rs 15,000 monthly SIPs grow over 10 years

Mutual Fund SIP Calculator: When evaluating the potential results of consistently investing a fixed amount of money each month in a Mutual Fund SIP (Systematic Investment Plan) over a ten-year period, it is common for novice investors to contemplate the returns they may achieve. Various online Mutual Fund SIP calculators, including those provided by fund managers, can offer an initial estimate of these returns. Employing such calculators can assist in assessing the expected growth of your investment.

For example, the SBI SIP Calculator enables users to enter details such as the investment period, monthly contribution, and anticipated rate of return to forecast the growth of their funds. According to this tool, if one invests Rs 5,000 monthly for a decade at an expected return of 12%, the total investment will amount to Rs 6,00,000, with estimated returns of Rs 5,61,695. Consequently, the total value of the investment could reach approximately Rs 11.61 lakh. In contrast, with a projected return of 10%, the total could be around Rs 10.32 lakh.

Furthermore, if an individual were to invest Rs 10,000 each month, the investment could potentially grow to about Rs 20.65 lakh at a 10% return and approximately Rs 23.23 lakh at a 12% return.

Also Read: Inflation Calculator: How much will a Rs 50 lakh home or car cost after 10 years?

Likewise, if an individual were to invest Rs 15,000 each month, the investment could potentially grow to about Rs 30.98 lakh at a 10% return and approximately Rs 34.85 lakh at a 12% return.

Is it wise to rely on online SIP calculators?

Online Mutual Fund SIP calculators can provide a general estimate of potential investment growth based on an assumed rate of return. However, it is important to recognize that these estimates are not definitive, as the actual future value of investments is subject to various influences, including market conditions.

Furthermore, there are occasions when these online tools may produce inaccurate estimates. Tax and investment expert Balwant Jain advises that beginner investors should consider using MS Excel to calculate the future value of their investments independently.

“You can utilize Excel to calculate the future value of your investments. Additionally, there are downloadable financial calculators that can aid in determining the future value of your funds,” Jain states.

While online calculators can be beneficial, it is advisable to confirm their results. By employing the Excel FV function, you can determine the future value of an investment. To execute this calculation using the FV function, you need to input information such as the investment period, expected interest rate, and monthly contribution amount.

Formula for calculation = FV (rate, nper, pmt, [pv[, [type])

Here, Rate signifies the interest rate that applies to each period, Nper represents the total number of payment periods, Pmt indicates the payment amount for each period, Pv refers to the present value of the investment, and Type denotes the timing of the payments, whether they occur at the beginning or the end of the year. For precise calculations, it is crucial that the units for Rate and Nper remain consistent.