Monthly SIP Calculator for Your Financial Goals

The monthly SIP calculator is a free online financial calculator that helps you to plan your savings towards a financial goal. Monthly savings and SIPs are the slow but sure-shot way to reach your bigger financial goals. The monthly SIP calculator helps you to plan your long-term goals.

How to Use The Monthly SIP Calculator?

Here’s how to use this calculator for your financial goal. Follow the steps given below to calculate your monthly SIP amount using the free online SIP calculator:

1. Desired Future Corpus: Enter the amount you will need in the future
2. Existing Investment: Any lump sum amount you can invest now into this goal
3. Time in Years: Enter the number of years you have before you need the money in box no. 1
4. Expected ROI: Enter the rate of return (only number) of the investment you will use for this goal
5. Calculate: Pressing calculate gives you the monthly SIP amount

Step 1: Enter the ‘Desired Future Corpus’

Your desired future corpus is the value of your financial goal in the future. You will need this amount from your investments to meet your goal.

For example, if you want to make a down payment of Rs 10 lakhs on your first house property five years from now, Rs 10 lakhs is the desired future corpus. This is the corpus you want to build.

Step 2: Fill in the Existing Investment Amount

The existing investment amount is the amount you have already accumulated for this goal. You can also use an amount you can invest in lumpsum for the goal.

For instance, if you want to invest Rs 1 lakh out of your annual bonus for the down payment goal, the Rs 1 lakh investment is your existing investment amount.

Step 3: Enter the Time to Goal

The Timebox is where you enter the number of years you want to achieve the goal. For example, in the case of the down payment for a home purchase, the time was five years.

This is the time available to you for building your down payment corpus. You can enter a fraction of the year in decimal places. For example, a period of two and a half years can be entered as ‘2.5’ in the Time field.

Step 4: Expected ROI

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You can use the annual rate of return of your preferred investment for the goal. In case you are not sure about the return on the investment, use the table to choose an ROI.

Enter the ROI without the ‘%’ sign. The monthly SIP calculator will automatically convert the number for calculation. For example, if you are investing in a Debt Mutual Fund for 7 years the expected ROI is 9% p.a. (as per the table). You only need to enter ‘9’ in the Expected ROI box.

Step 5: Calculate

When you press the calculate button the free online SIP calculator gives you the monthly investment amount. If you invest this amount every month for the given term you can build the corpus to meet your financial goal.

For example, if your goal was to accumulate Rs 10 lakhs in 5 years and you can invest at an ROI of 10% p.a., you will need to save Rs 3585.66 p.m. for the next five years. This is when you already have an investment of Rs 1 lakh dedicated to the goal.