The Ultimate Wealth Builder: Why Our SIP Investment Calculator?
Let me ask you a simple question- if you wish to invest a fixed amount every month with 12% returns for 10 years, any monthly SIP calculator would do just fine. But, what if your monthly income grows over time, the government announces LTCG tax cuts, and the silent demon-inflation, steadily eats away at your returns?
Each and every day hundreds and thousands of investors consult the ICICI SIP plan calculator or the SBI SIP calculator to gauge their estimated returns. While these traditional monthly SIP calculator tools can provide you with a rough estimate, there is also need for more advanced SIP calculator plugins that can account for practical aspects such as inflation, LTCG taxation and annual step-ups. This is why we created the smart SIP calculator online at WriteByHand.
The Complete Mutual Fund Calculator: SIP returns with inflation, LTCG, and annual step up
Our mutual fund SIP calculator goes the extra mile to ensure that you have an accurate projection of your wealth. With advanced metrics such as inflation, Long Term Capital Gains (LTCG) and an annual step up, this SIP calculator aims to be as honest and straightforward as possible. Whether you are using this tool as a SIP return calculator to monitor past returns or to plan your future needs, you are just a handful of clicks away from actionable insights in the simplest of interfaces.
How to Calculate SIP for 1 Crore: The reverse SIP calculator
"How much should I invest monthly to make 1 crore?" is one of the most frequently asked questions by young investors. Being able to make 1 Crore is a huge milestone for any individual investor. Instead of using traditional SIP calculators for estimating such large goals, an advanced SIP calculator such as ours is much more effective.
By using our SIP calculator in 'Target Goal Mode', we essentially have a reverse SIP calculator that tells you how much you need to invest monthly to reach your target goal. Whether you are shooting for 50 Lakhs, 1 crore, 5 crores or even more, you simply enter your goal amount and desired years, and let the SIP calculator do the heavy lifting for you.
As the underlying SIP calculations suggest, the younger you start, the lesser the monthly instalment needs to be for you to reach your target goal. In case you are wondering about your timeline, you can always utilise our age calculator to determine how much time you exactly have to reach your retirement goal.
Fast Track Your SIP Wealth: The step up SIP calculator with amount
Let's say you decide to begin a SIP with ₹5,000. What happens after 20 years? You could be sitting on a small lump sum that barely manages to keep up with inflation. But, what if you are earning more every year and would like to begin investing more each year as your income rises?
(You can always calculate your new salary with our salary calculator to determine how much extra you can invest every year.)
This is precisely where a step up SIP comes into play. A step up SIP essentially lets you periodically increase your monthly instalment (Usually by a certain % every year).
For instance, if you begin a SIP of ₹10,000 with 10% step up, your SIP instalment would be ₹11,000 the following year and ₹12,100 the year after. Essentially, with minimal additional effort on your part, you can boost your returns dramatically. By using a SIP plan calculator such as ours that incorporate step up SIP, you can fast track your SIP wealth and potentially accelerate your target timeline by up to 5-7 years!
The Reality of Inflation
Seeing ₹2 Crores projection on your screen is super exciting at the moment. But have you ever thought about what will this amount be able to buy you in 20 years? Inflation will take a huge toll on the purchasing power of the money.
By enabling the Toggle on our inflation adjusted SIP calculator you can get a real vision of what your future corpus will be able to buy you.
By setting the inflation to 6 percent you can see how much is your future corpus worth in today's terms. This way you will understand if your future lifestyle is going to be the same as you imagine.
Don't Forgets The Taxman
The money you see as profit on your mutual fund calculator is not the money that is going to come directly to you. The government takes its cut in the form of taxes on the capital gains.
Currently, mutual fund equity schemes are taxed at 12.5 percent on Long Term Capital Gains (proceeds over ₹1.25 Lakhs).
That's why we have built a SIP calculator with LTCG tax estimator right into the dashboard. By enabling the toggle we will show you how much money you will have to pay in taxes and how much will be left for you clean after tax.
Investment Frequencies: Daily, Monthly, and Annual SIP Calculators
Depending on your cash flow situation you might be making investments daily, monthly or even annually.
Most SIP calculators only give you an option to input a monthly installment. But the truth is that there is a huge variety in how people make investments.
The flexibility of mutual funds allows you to make investments every day, if you so desire. This type of systematic investing is often called daily sip.
While investing daily seems like a great way to benefit from rupee cost averaging, the mathematical differences between daily, monthly and even annual SIPs are surprisingly small.
The same goes for annual SIPs. If you have a bonus that you would like to invest in a lump-sum manner every year, using an annual SIP calculator mindset will benefit you.
In order to use our SIP calculator for daily or annual SIPs, you simply plug in numbers accordingly. If you have an annual target you want to invest every year just divide it by 12 and you will have a monthly target equivalent. Our systematic investment planner works great for all investment frequencies which is why the engine is so powerful.
Time is Money: The Hidden Cost of Delaying SIP
"I will start my SIP next year when I have more savings". That's probably one of the most common mistakes people tell themselves when it comes to investing.
When it comes to SIPs the math is pretty straightforward: the earlier you start the better it is for you. The power of compounding is at its highest when you give it time to work its magic.
On our dashboard we try to educate our users on the opportunity cost of postponing SIP. Play around with dates and you will see how postponing SIP by a year can hurt you by millions of rupees.
Frequently Asked Questions (FAQs)
What is a realistic expected return rate to enter in a compounding calculator?
While no one can correctly time the stock market, the last 15-20 years in India have seen large-cap & index funds deliver around 11%-13% annually on an average. Mid and small-cap mutual funds have the potential to touch 15% or even more, but one must be wary of the volatility that comes with it. For prudent wealth-building in a SIP calculator, 12% is a fairly realistic rate of return to aim for.
Should I stop my SIP when the stock market crashes?
On the contrary, one must not halt their SIP investments when the market witnesses a correction. The Net Asset Value (NAV) or the price of a mutual fund scheme decreases during such a period. This means that for the same SIP instalment amount, you get more number of units. Once the market stabilizes, the value of these additional units will improve, giving you greater returns on your SIP calculator.
Is 1 Crore a realistic target for a middle-class earner?
Wealth creation through SIPs is all about time. You can reach the 1 crore SIP mark faster than you think by using our 1 crore sip calculator. With a simple SIP of ₹10,000 and a 10% yearly step up (using the step up sip calculator with amount option), you can achieve your target of 15-16 years.
Should I invest in SIPs or should I pay off my existing debts first?
It depends on the prevailing interest rates. If you have taken a home loan or a personal loan at rates higher than 10%, it would be wise to first pay off such debts. You can use our EMI Calculator to figure out how much extra you would have to pay as interest if you continue to carry forward your loans. On the other hand, if you are an employer and have to deal with day-to-day expenses, you should calculate your profit margins using our GST Calculator.
What is so special about this tool compared to other bank calculators?
Most of the SIP calculators provided by banks like an ICICI SIP plan calculator or an SBI SIP calculator are mere marketing tools. They give you a fairly optimistic view of the returns you may expect from an SIP. Our SIP calculator with tax estimator has been created to give you a realistic view. With the optional inflation adjusted sip calculator, you can ensure that the future value of money retains its purchasing power.
Can I also use this as a daily SIP Calculator or an annual SIP Calculator?
This SIP calculator with step up option has been developed as a monthly SIP calculator. However, you can use it as an annual SIP calculator too. All you have to do is enter the amount that you would usually invest every year as a monthly instalment. In case you want to use it as a daily SIP calculator, you can multiply your daily investment amount with 30 to arrive at the approximate monthly investment amount.