Daily SIP Calculator: Calculate Daily SIP Returns Instantly

What is a Daily SIP?

A daily SIP (Systematic Investment Plan) is an option which can be used to invest a fixed amount of money every day instead of investing weekly or monthly. Since the market fluctuates every day, the investors who prefer this SIP can make the most of these fluctuations.

Through a daily SIP in mutual funds, small, consistent investments add up over time, helping you benefit from daily compounding and disciplined wealth creation.

Benefits of Daily SIP Investments

As discussed above, daily SIPs are a great fit for investors who want to take advantage of market moments without worrying about timing. It offers considerably unique benefits compared to weekly or monthly SIPs -

Provides better rupee-cost averaging, as you invest daily, your cost per unit gets averaged across more market days, reducing the volatility risk.
Compounding starts working faster on your investments as the returns are calculated daily.
Automating daily contributions helps you build a strong savings and investing habit.
You don't need a big amount to start. This makes it a convenient option for students, young professionals, or anyone starting their investment journey.

Daily vs Monthly vs Weekly SIP: Key Differences

While the objective of all the SIPs is the same, disciplined and consistent investing, the frequency of investments can really make a difference in how your money grows. Let's understand how daily, weekly, and monthly SIPs differ in practice:

Daily SIP	Weekly SIP	Monthly SIP
Investments have to be made every trading day	Investment has to be made once a week	Monthly investments
Investors who prefer consistency and daily participation	Those who want regular investing without daily commitments	Salaried individuals or long-term investors
Requires more frequent transactions	Easy to manage	Very easy and automated
Strongest rupee cost averaging advantage as investments are spread across multiple market levels	Moderate rupee cost averaging advantage	Comparatively lesser advantage but steady growth

How Does a Daily SIP Calculator Work?

A daily SIP compounding calculator lets you estimate how much your investments could grow if you invest a certain fixed amount every trading day.

The calculator works on the principle of compound interest, and displays how small, regular contributions add up over time.

As soon as you enter your daily investment amount, investment duration, and annual rate of return, the calculator automatically converts the annual rate into a daily rate of return and applies it to the total number of investment days. It then shows the total invested amount, estimated maturity value, and potential gains.

Compound Interest Formula for Daily SIP

To estimate the amount you will receive upon maturity of an SIP (Future Value), the following formula is used -

M = P × {(1 + r)^n - 1} / {r} × (1 + r)

In this formula -

M is the future value of the SIP
P is the monthly SIP amount
n is the total number of installments you made
r is the periodic rate of interest

Example of Daily SIP Calculator

Suppose Mr. A invests Rs 200 every day for 10 years in a mutual fund offering an annual return of 12%. To calculate the maturity value, we first have to find the daily rate of return, which is ("r").

A common error is dividing 12% by 365, but that ignores compounding. Hence, the correct formula is:

Daily Return = {(1 + Annual Return)^1/12} – 1

So,

r = (1 + 0.12)1/12 −1

= 0.000311 or 0.0311% per day

Now, let's insert all the values.

P = ₹200
r ≈ 0.000311
n = 365 × 10 = 3,650 days

FV = 200 × {(1 + 0.000311) ^ 3650 - 1} / {0.000311} × (1 + 0.000311)

After 10 years, the total corpus will be around ₹13.9 lakh. Out of this, ₹7.3 lakh is the total amount invested, while the remaining ₹6.6 lakh is the return earned through daily compounding.

One key point to remember is that the rate of return on SIP is not fixed and might differ with market conditions.

How to Use Dhan's Daily SIP Calculator

Dhan's daily SIP return calculator is designed for you to plan your investments more effectively. Using it is quick, easy, and takes a few simple steps:

Select your daily investment amount (for example, Rs. 100 per day)
Then, select your investment duration, such as 5 years or 10 years.
Choose your expected annual rate of return (e.g., 12% per year)

The mutual fund SIP calculator displays your estimated maturity amount, total investment, and potential gains after compounding.

SIP Calculators by Dhan

At Dhan, we offer different SIP calculators online for your different financial goals.

Weekly SIP Calculator: Displays projected returns for a fixed investment once a week.
SIP Calculator: Lets you calculate the future value when you invest a certain fixed amount every month.
SWP Calculator: Calculates how long your corpus will last or what amount you can withdraw when you set a systematic withdrawal plan.
Step-up SIP Calculator: Shows how your corpus grows when you increase the SIP amount periodically.
Lumpsum Calculator: Lets you know the future value of your one-time investment over a chosen period of time.
SIP Calculator with Inflation: Adjusts estimated returns for inflation, enabling you to see the real or the inflation-adjusted value of your corpus.
SIP Goal Calculator: Provides you with the SIP amount you need to invest regularly to reach a target objective at an assumed return.

Advantages of Using a Daily SIP Calculator

A daily SIP calculator saves your time and also helps you smartly plan your finances and goals. Here are some additional advantages of the daily SIP calculator:

1. Accurate Estimates

The calculator provides you with a clear projection of your total investments, maturity value, and returns that you can expect.

2. Saves Time

You don't have to do any calculations; the calculator will do it for you. It will show you the final corpus after a selected duration of time in seconds.

3. Helps You Compare and Plan Better

Since it hardly takes any time to do the calculations, you can experiment with different daily amounts, timeframes, and return assumptions to see what works best for your goals. This makes it easier to decide whether a daily, weekly, or monthly SIP fits your investment style.

4. Free and Accessible Anytime

Dhan's SIP investment return calculator is completely free and available online anytime. You can use it as often as you want without any signups for reliable insights, enabling you to invest better.

FAQs on Daily SIP Calculator

Some brokers have now made it possible to invest through daily SIPs, and Dhan is one of them. With Dhan's daily SIP feature, you can invest a fixed amount every trading day in a mutual fund.