Monthly Investment

₹ 500

₹ 1,00,000

Expected Return Rate (p.a)

1%

30%

Time Period (in years)

1 yr

30 yrs

SIP (Systematic Investment Plan) is a type of investment plan used to invest in Mutual Fund, Stocks and ETFs. Using SIP one can invest small amounts weekly, monthly and quarterly into selected stocks. As the amount is invested on regular intervals, the impact of market volatility is comparatively lesser. Simply put, SIP calculator provides you a rough estimate and roadmap to achieve your various financial goals based on a projected annual return rate. A SIP return calculator can be highly effective in computing complex financial calculations in no time. Based on your inputs the SIP planner arrives at the result in a matter of seconds.

SIP calculator provides a potential return using the compound interest formula. Simply put, compound interest is the addition of interest to the principal sum of payment (in this case investment), or in other words, interest earned on interest.

To calculate your SIP returns you need to enter -

1. Monthly Investment (Amount you wish to invest every month)

2. Expected Return Rate (Rate of return you expect on the investment)

3. Time Period (Time for which you want to stay invested)

Once you input these values, the online SIP calculator will display the total corpus you could earn in the specified period.

Here is how a SIP calculator formula exactly works -

M = P x ({[1 + i] n - 1} / i) x (1 + i) where, M is the total amount you will receive upon maturity, P is the money you invest periodically/ at regular intervals, n is the total number of payments made by you and i is the periodic rate of interest.

Let us calculate SIP returns with the help of an example -

Imagine you plan to invest Rs.10,000 per month for 7 years and the expected rate of return is 12%.

So, the monthly rate of return will be 12% / 12 = 0.01

Hence, M = 10,000 ({[1 + 0.01] {84} - 1} / 0.01) x (1 + 0.01)

In this scenario, you would earn a total corpus of Rs.13.19 Lakhs.

Now, if you wish to increase the investment amount to Rs.12,000, you would earn Rs.15.83 Lakhs. You can adjust the values to find out what works best based on your financial goals.

Research and calculation is very important before making an investment decision. Also, you must estimate the potential returns before investing to understand whether it is a profitable investment opportunity or not. SIP return calculator is one such tool that helps you make a calculative investment decision.

The following are the benefits of the stock SIP calculator -

1. Tells you estimate potential returns.

2. Tells you monthly SIP amount required to reach the goal.

3. Allows you to adjust the time period and rate of return.

4. Helps you take calculative and informed decisions.

5. Shows various growth scenarios

A stock SIP is simply a method of investing in stocks or ETFs periodically. With Dhan, placing a stock SIP order is simple and seamless.

How does Dhan Stock SIP work?

1. You can invest daily, weekly or monthly in your favourite stock

2. You can trigger your order automatically on trading days

3. You can update or trigger SIP whenever you want

The following are benefits of Stock SIP -

1. Periodic investing reduces risk volatility

2. Disciplined investing improves financial management

3. Long-term investing helps accumulate sizeable corpus

4. Rupee cost averaging protects your money from market instability