SBI SIP Calculator

SBI SIP Calculator is an online tool that helps you estimate the future value of your mutual fund investments. Estimating your future returns in advance will help in determining the amount you will need to invest to meet your financial goals. Moreover, estimating potential returns on mutual fund investments through manual calculation can be complex, SBI SIP calculator makes return calculation quick, accurate and easy. The calculator also allows you to adjust variables like tenure, investment amounts and expected rate of return to compare strategies instantly without any cost.

Follow these steps to use the SBI SIP calculator on Paisabazaar: 

Step 1: Choose the SIP investment frequency

• Choose a monthly SIP option if you want to invest a fixed amount every month. 
• If you prefer to invest once a year, select a yearly SIP.
• Choose a one-time (lump sum) investment if you want to invest a large amount of money all at once.

Step 2: Enter your goal amount

Based on your selected investment type, input the amount you plan to invest.

Step 3: Choose the investment duration in years

Choose how long you wish to invest in a mutual fund. This helps to calculate how your investment can grow over the selected period.

Step 4: Enter expected RoR and the rate at which you want to step up SIPs

Enter your expected rate of return (oR) on investments. If you plan to increase your investment over time, input the step-up SIP percentage. It is important to note that the rate of return may vary.

After entering all the required details, the calculator will show your estimated wealth accumulation.

*Since mutual funds are market-linked, the calculator doesn’t show the guaranteed returns, but it provides a close estimation of your returns.

This calculator works on the basis of the following formula:
FV = P [ (1+i)^n-1 ] * (1+i)/i

In this formula, 

• FV stands for the expected future value of the investment.
• P stands for the principal investment amount.
• i refers to the rate of return.
• N refers to the number of months.

Benefits of Using SBI SIP Calculator

Manual SIP calculations are quite complicated and time-consuming. Besides this, an SIP calculator offers multiple benefits, some of them given below: 

• Free tool: You can use this calculator free of cost to determine the amount you must invest in order to reach your goal.
• Explore different investment outcomes: Based on different amounts and tenures, you can strategically plan and align your investments for specific financial goals.
• Fast calculation: Using this calculator, you can know your estimated return instantly.
• Provides accurate results: Manual calculations have chances of mistakes, but the SIP calculator shows accurate results without any complicated calculations. 
• Monitor your progress: After investing, you can check your progress whenever you want. This helps you make some changes to your investment according to your goal. 
• Factors in step-up SIP investments: This feature allows users to include an annual increase in their SIP amount while calculating estimated returns.

• Find the suitable SIP amount: If you know your goal amount, the calculator can help you find out how much monthly SIP you should invest to reach that goal. 
• Estimate your future returns: You can estimate how much total corpus you can earn throughout the tenure of your investment. 
• Understand the power of compounding: This calculator can help you know how your investments grow year after year through compounding.

Difference between SBI Lumpsum and SIP Calculator

There are two ways to invest in your mutual fund: one is through SIP and the other is the lump sum method. In SIP, you invest a fixed amount at regular intervals such as daily, monthly, quarterly and yearly over a period. In the lump sum method, you invest your money in one go. 

With the Paisabazaar SIP calculator, you can make both types of calculations. Let’s understand how much return we can earn through each method with the same investment time:

Return Comparison: SIP calculation vs Lumpsum calculation

Assuming a 15% annual return, here is how much you can earn through both methods: 

Note: The above calculations are illustrative and not guaranteed. Actual returns may vary depending on market performance and other factors.

A Step-Up SIP is a method that allows you to increase your SIP contribution by a predefined percentage each year. This method helps you potentially build a larger corpus over time. 

For example, suppose you have started a ₹5,000 monthly SIP in SBI and chose to increase it by 10% annually; your monthly investment will increase to ₹5,500 in the next year and continue increasing every year. Using a step-up SIP over time allows you to contribute more money without making a large contribution all at once. 

You can calculate your estimated returns based on your planned step-up percentage using the SBI SIP Calculator by Paisabazaar. With this option, you can estimate how increasing your SIP amount yearly can impact your total investment value and expected returns.

Top SBI Mutual Funds

SBI offers a wide range of mutual fund schemes across categories. Investors should always choose a fund based on their financial goals, historical performance, portfolio composition, expense ratio and risk appetite. Some of the SBI mutual fund schemes (this may change frequently) are:

• SBI Gold Direct Plan - Growth
• SBI PSU Direct Plan - Growth
• SBI Healthcare Opportunities Fund
• SBI Small Cap Fund
• SBI  Contra Direct Plan - Growth

Note: Please note that the above list is for information purposes only and this should not be considered an investment recommendation.