Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

What is SIP Calculator, and How it Works?

SIPs are a popular way of investing in mutual funds as they allow investors to make small, periodic investments over a period of time. Read ahead to know all about it.

  • Jun 23, 2023

Updated on:23 June 2023

A systematic Investment Plan is a popular investment tool in the world of finance. It is an easy and disciplined way of investing in mutual funds, where investors can invest a fixed amount at regular intervals.

    Key takeaways

  • A Systematic Investment Plan (SIP) calculator is a helpful tool for investors who want to calculate the potential returns on their mutual fund investments.
  • An online SIP calculator uses advanced algorithms to provide accurate results, considering different market scenarios and historical data.
  • When an investor opts for SIP, they agree to invest a fixed amount at regular intervals. The amount is automatically debited from the investor’s bank account and is invested in the mutual fund scheme of their choice.

SIPs are a great way to build wealth in the long run and can be tailored to meet individual investment goals. In this article, we will discuss how SIP works and why it is a popular choice among investors.

What is a SIP calculator?

A Systematic Investment Plan (SIP) calculator is a helpful tool for investors who want to calculate the potential returns on their mutual fund investments. SIP is a method of investing in mutual funds where investors make regular, fixed investments in a fund over a period of time instead of investing a lump sum amount at once. The SIP calculator helps investors to estimate the future value of their investments and the returns they can expect to earn based on their investment amount, investment frequency, expected rate of SIP return, and investment tenure.

What is the Importance of a SIP calculator?

With a SIP calculator, investors can calculate the expected returns and the amount they need to invest regularly to meet their SIP investment goals. Here are three major importance of a SIP calculator.

Financial Planning

One of the significant advantages of using a SIP calculator is that it helps investors in financial planning. It allows investors to set a target corpus for a particular financial goal and calculate the monthly investment required to achieve it.

Accurate Results

A SIP calculator online uses advanced algorithms to provide accurate results, considering different market scenarios and historical data. This allows investors to have a realistic expectation of the expected returns and adjust their investment amounts or goals accordingly.

Saves Time and Effort

Manually calculating the returns and investment amount required for each investment can be a tedious and time-consuming process. A SIP calculator simplifies the process and saves investors the effort of complex calculations.

How Does SIP Work?

When an investor opts for SIP, they agree to invest a fixed amount at regular intervals. The amount is automatically debited from the investor’s bank account and is invested in the mutual fund scheme of their choice. The investment is made on a pre-decided date, and the investor can choose the date at their convenience.

SIP investments are made at the prevailing Net Asset Value (NAV) of the mutual fund scheme on the date of investment. The NAV is the market value of the mutual fund’s portfolio, and it varies daily. Therefore, the number of units allotted to the investor varies based on the prevailing NAV.

Over a period, the investor accumulates units of the mutual fund scheme. The value of the investment is determined by the number of units accumulated by the investor and the prevailing NAV of the scheme. If the NAV of the scheme increases, the value of the investment also increases, and vice versa.

Benefits of Using a SIP Calculator

The SIP (Systematic Investment Plan) calculator has gained immense popularity among investors due to its ability to provide accurate insights and streamline investment planning. Here are a few of the many benefits a SIP calculator offers:

Goal Planning

SIP calculators are invaluable tools for goal-based investment. By investing in different investment amounts and tenures, investors can assess the feasibility of achieving their financial objectives, such as funding education, buying a house, or building a retirement corpus.

Realistic Expectations

The projections generated by a SIP calculator help investors set realistic expectations regarding their investment growth. It enables them to evaluate the potential returns based on varying investment durations and amounts, guiding them toward the appropriate investment decisions.

Comparisons and Simulations

Investors can compare multiple investment scenarios using a SIP calculator. By altering parameters like the investment amount or tenure, they can visualize the impact on the future value and choose the most suitable option to achieve their financial goals.

Course Correction

If the projected returns do not align with your financial objectives, a SIP calculator allows you to make adjustments in terms of investment amounts or tenures. This helps in fine-tuning your investment strategy to achieve the desired outcome.

What are the Uses of the SIP calculator?

SIP calculators are online tools that allow you to estimate the returns on your SIP investment over a period of time. Here are five uses of SIP calculators.

Estimating Returns

One of the most common uses of SIP calculators online is to estimate the returns on your investment. You can input the amount you want to invest, the tenure of the investment, and the expected rate of return, and the calculator will provide you with an estimate of the expected returns.

Comparing Investments

Another use of SIP calculators is to compare the returns on different investments. You can input the details of different mutual funds, such as the expected rate of return and the expense ratio, and the calculator will provide you with an estimate of the returns on each investment.

Planning Investments

Finally, SIP calculators online can be used to plan your investments. You can use the calculator to determine the amount you need to invest each month to achieve your financial goals.

Choose The Right Investment

With a SIP calculator, investors can compare different investment options and choose the one that suits them best. The calculator allows users to input the investment amount and the duration of the investment and provides them with the expected returns for different investment options. This helps investors make informed decisions about their investments.

Understand The Impact of Inflation

Inflation can significantly impact the returns on investment. A SIP calculator takes into account the impact of inflation and provides investors with the real rate of return. This helps investors understand the true value of their investments and make better investment decisions.

Wrapping Up

SIP calculators can be useful for investors to plan their investments and set realistic goals. By using the calculator, investors can get an idea of the amount they need to invest and the duration of the investment required to achieve their financial goals. Overall, SIP calculators are a handy tool for investors who want to invest in mutual funds through the SIP route and want to get an idea of the returns they can expect from their investments.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


- A Consumer Education Initiative series by Kotak Life

Similar Articles

What is Equity Mutual Funds: Meaning, Types & Benefits

What is ULIP and Its Benefits?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Planning For Children's Future

Factors Affecting Share Prices In The Stock Market

Do You Know the Difference Between Savings and Investment?

ULIP Benefits You Can Avail from Early Investing

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

How to Plan your Investment to Achieve Periodic Financial Goals?

5 Reasons to Buy ULIPS for a Financially Secured Future

How Safe is it to Invest in ULIP plans?

FAQs on Taxation of ULIPs

यूलिप के फायदे (Benefits of ULIP in Hindi)

How Can ULIPs Help You Plan for Your Child's Future?

Top 10 Investment Strategies to Create Wealth

Long Term Savings Plan - Best Savings Investment Plans in India

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

How Do One-Time Investment Plans Work?

Difference Between Linked and Non-Linked Insurance Plans

How Can ELSS Funds Help You Save Tax & Create Wealth?

Importance of Portfolio Management

What is Savings and the Importance of Saving Money

How and when should you exit from bad-performing ULIP?

Balancing Investment Between Risk and Return on Investments

ULIP Plan or Traditional Insurance Plans - Which is better?

8 Charges in ULIP That You Must Know

What Happens If I Stop Paying My ULIP Policy Premium After Paying the First Premium? Will I Still Get The Return?

What is Money Management? Definition & Example

Best Investment Options in India in 2022

How Much Wealth Can You Create from ULIP in 10 years?

Which is a Better Investment - Mutual Funds Or ULIP?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

4 Rules To Keep In Mind To Secure Your Child’s Future Financially

Top 5 Investment Options in 2022 for Healthy Returns

Develop an investing plan

How has ULIP Grown Over the Last 3 years?

Know Why You Should Stay Invested in Your ULIP Plan

Creating a second source of income with life insurance

What is Mutual Funds? | How Mutual Funds Work, Definition

Why Do You Need A ULIP Plan - All You Need To Know

How to Increase Net Worth Along with Family Protection

How to Manage Your Portfolio Like a Professional?

Is Life Insurance Investment Worthy Enough

How Increasing Your SIP Every Year Helps You Reach Your Financial Goal Sooner?

यूलिप और उनके प्रकार क्या हैं?

What Is Social Impact Investing and How Does It Benefit Society?

Got a Salary Hike? Here’s How to Plan your investment further

वित्तीय संपत्तियां और उनके प्रकार

ULIP Plans Riders You Should Know About

How ULIPs can help you achieve your financial goals

All you need to know about Fund Switching in ULIPs

Asset Allocations in ULIP - Know the Top Benefits

Best Investment Plans for Children - Secure Your Child's Future

What is the Estimated Return Percentage on ULIP? Do Investors Get Compound Interest?

6 Important Tips to Maximize Your Gains with ULIP Investments

Receiving regular payouts at various stages of life

What are the Best Investment Options For Females?

ULIPs: Suitable for all

Why ULIP is Better Investment for Long-Term Wealth Creation?

What are Some of the Safest Investment Options in India?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Will AI be Your Future Financial Adviser? What Role Will Humans Play?

What is Compound Interest, And How Do I Calculate it?

Why are ULIPs One of the Best Tax Saving Instruments?

Customising investments to manage your wealth

What are Fixed Maturity Plans and Why Should I Invest in Them?

How to Make Your Financial Portfolio?

Difference Between Passive and Active Investing

How to Save Money from Salary?

What are the Best Investment Options for Young Adults?

Is ULIP a Complex Financial Product?

How to Plan Your Child's Education - A Step-by-Step Guide

What are the Best Investment Options for Beginners or Amateur Investors in India?

What are Index Funds, and How Do They Work?

Do ULIPs Give Good Returns On Investments?

Planning For Son or Daughter's Wedding

Endowment Plan vs Fixed Deposit?

What are ULIPs and their Types?

Is This The Right Time To Invest In ULIP? Why or Why Not?

What is Premium Redirection in ULIPs Plans | ULIP Insurance Plans | Kotak Life Insurance

ULIP Capital Gain Tax: Check Tax Norms for Capital Gain on ULIPs

Know How to Invest at Every Age for Larger Returns

What is ULIP Plan, and How Does it Work?

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

Here's Myths on Investments in ULIP Plans

Which are the Best ULIP Plans in India for Children?

What is a Bond Fund and How It Works?

What are the Maturity Benefits in a ULIP Plan: Fund Value Sum Assured or Only Fund Value?

Different Types of ULIP Investments in India

ULIP NAV - Everything You Need to Know

How to Manage Inheritance Money?

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

Benefits of ULIP as a Child Insurance Plan

What are loyalty additions, and how do they work in a ULIP?

Early Investing and the Power of Compounding

ULIP As An Investment Option For Senior Citizens

What is Lock-In Period in ULIPs?

Can You Have ULIP Plan and Health Insurance Plan Both?

What are the Advantages and Disadvantages of ULIP?

Top 5 Principles That Need to be Followed for Wealth Creation

Are Money Back Policies Helpful? A Complete Guide

Can NRIs Invest in ULIP Plans Offered in India?

All you need to know about claiming maturity proceeds from Ulip

What are the Best Short-Term Investment Plans with High Returns?

What are the Best Investment Options for Students in India?

What Is a Credit Score? Definition, Factors, and Ways to Raise It

ULIP Investment Benefits You Must Know

Can I Surrender My ULIP Policy after 2 Years?

Will You Need to Withdraw or Surrender Money From ULIP

8 Important Tips to Maximize Gains with ULIP Investments

Why Should You Invest in NPS?

Understanding ULIP Risks: What are the Odds of Losing all my Money and Projected Returns?

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

Investments Options to Buy a house in India

Which is Better – FD, Mutual Fund, SIP, or ULIP?

Can ULIP Help in Achieving Short-Term Financial Goals?

Difference Between ULIP and Endowment Plan?

Best One-Time Investment Plans in India

5 Reasons Why ULIP Plans are One of The Best Retirement Planning Instruments

Safe Investment Options with High Returns for FY 2018-19

What is Fund Value in ULIP?

Tax-Deferred Savings Plan: Overview, Benefits, Works

How to Choose the Best ULIP Plans to Invest in 2022?

How to Apply for Death Claim Benefits in ULIPs - Kotak Life

Are Investment Returns Guaranteed in a ULIP?

What is the Time Value of Money (TVM)?

Planning for Your Child's Higher Education? Explore These Investment Options

ULIP vs FD - Which is Better and Why?

Learn About Safe Investments with High Returns in India

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?

What are the Minimum and Maximum Investments in ULIP?

How to Use Recurring Investment Strategies to Build Wealth?

Four Financial Lessons from The Vedas on Living Life to The Fullest

How to Create Short-Term and Long-Term Wealth with ULIPs - Kotak Life

ULIP Tax Benefits: यहां निवेश करने पर मिलते हैं 5 बड़े फायदे

How to Calculate Your ULIP Returns?

Investment Options for NRIs in India

How To Track ULIP Performance?

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

Difference Between Guaranteed Savings Plan and ULIP

How Much Wealth Can You Create From ULIP in 10 years?

Is ULIP A Good Investment Option?

How to Fix the 9 Most Common Financial Problems Your Family is Facing

Savings Plan for Grandchildren

How to Cancel ULIP Policy?

Here's Whether You Should Link ULIP Plan with your Term Insurance

Single Premium ULIP or a PPF - Which One is Better?

Top 11 Investment Plans Available in India

Is the surrender value of ULIP taxable?

First Job? Here are Some Tips on How to Manage Finances

Planning Financial Goals and Objectives of Financial Planning

What's Better for Your Child's Education? Child Plans or Mutual Funds?

Why Are ULIPs Called Flexible Investments?

What is Direct Investment and its Types?

यूलिप के फायदे और नुकसान क्या हैं?

Are Gains from ULIP Sale Taxable?

Can ULIP Policy be Transferred?

Learn About Safe Investments with High Returns in India

ULIP policy: What happens when you stop paying ULIP policy premium during lock-in period

Why ULIP Should Be a Part of Your Investment Portfolio?

How to Build a Strong Financial Foundation For the Future?

Does Rupee Cost Averaging Work In Unit-Linked Insurance Plans?

ULIPs Investment – A Boon or Bane?

Building wealth through regular investing

ULIP Frequently Asked Questions (FAQ) - Kotak Life

5 Reasons to Have a Child Education Plan

How To Invest Money In ULIP?

Can You Invest in Both Term Insurance and ULIP?

How to Start Saving Money in 10 Simple Ways?

What is a Savings Plan and What are is Benefits?

Best Investment Options to Cover Your Child's Education

What is Partial Withdrawal in ULIPs?

ULIP Vs Life Insurance Plan Know the Difference

How to Set Financial Goals for Your Future

What is ULIP Renewal?

What is a Child Money Back Plan, and How Does it Work?

The lesser-known facts about ULIP policy that customers should be aware of?

What is NAV in ULIP, and How is it calculated?

ULIP Plan as a Gift

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

यूलिप प्लान में परिपक्वता लाभ क्या हैं: फंड वैल्यू सम एश्योर्ड या ओनली फंड वैल्यू?

Why Should I Invest in ULIP?

Here's are the uses of ULIP your must be aware of

What are Financial Assets & their types?

Here's Why it's a Good Time to Explore ULIPs as an Investment

What are the things to consider before buying ULIPs?

How Can ULIP Plan be as an Investment for Your Child

Top ULIP Myths That You Must Stop Believing In

Corporate Bonds: Meaning, Types & Benefits

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

Successful Financial Planning for Urban Women

5 Best Long Term Investments To Add To Your Portfolio in 2023

Why Should You Build an Emergency Fund?

Best Investment Plans For You To Invest In 2023

यूनिट लिंक्ड इंश्योरेंस प्लान में लॉयल्टी एडिशन कैसे काम करते हैं

ULIP Withdrawal Conditions - Before and After 5 years

Rate of Interest on Different Investment Plans in India

What Is Financial Planning?