SBI SIP Calculator

The calculator offers the following advantages-

Ease of use: The calculator needs very basic inputs, thus not requiring any expertise or understanding to use. Further, the calculator results are also depicted clearly with markers for your easy understanding.

Accurate results: The tool is time tested and developed on an extensive database to give reasonably accurate results, thus helping users determine the SIP returns.

Reduces investor efforts: The calculation of SIP returns can be a complex task for individual investors who don’t have access to the right tools or data. The SBI SIP calculator eases the investor's process of calculating SIP results by providing an easy and accessible tool available at the click of a button.

Aid financial planning: Carefully selecting the right investment options is one of the primary drivers of successful financial planning. By providing the ways and means of estimating SIP returns, the SBI SIP calculator helps you with your planning.

For any tool to give you an estimate of the maturity value of your investments, there needs to be a returns’ value assumed. Now, in generic SIP calculators, this value of returns is entered by you. But in a calculator like the SBI SIP calculator, this value is derived on the basis of the scheme’s past performance.

The calculator gives you a drop-down list of the various SBI mutual fund schemes, out of which you select the one you want to invest in. Once this selection is made, the tool shows you the historical Extended Internal Rate of Return (XIRR) of that scheme. Post this, on the basis of your SIP amount and investment period, the tool calculates the maturity value.

As mentioned above, The SBI calculator uses the XIRR, to calculate the historic returns provided by SIP in any scheme. Now, the calculator uses the following formula to derive the maturity value

Future value (FV) = P x {[(1 + r) n – 1] ÷ r} x (1 + r)

P = SIP Amount
r = expected monthly rate of return (XIRR, in this case)
n = Number of instalments

Let’s take an example. Suppose an investor invests Rs 5,000 per month in a scheme in 2021 and ends up with Rs 65,000 as maturity value for the investments. Based on the parameter provided, the XIRR or SIP return for the investment is 16%.

So, the investment of Rs 5,000 if continued for the next five years at the same pace of returns (16%), the calculator gives the following results-

For illustration purpose

Similarly the maturity values for various time periods are as below (with Rs 5000 as the monthly investment amount)-

And so on.

The SBI Mutual Fund calculator works on the below inputs provided by the user-

• The SBI mutual fund scheme
• The investment amount
• The investment period

Based on the above inputs, the calculator computes the past returns of the scheme. And with these numbers in place, it computes the maturity value over that period along with the gains.

Follow these basic steps to get the desired result from the calculator-

Step 1: Select the fund of your choice, such as the SBI Bluechip Fund

Step 2: Add how much you need to invest in this month

Step 3: Select the time frame of your investment duration.

The calculator then gives the maturity value of the investments based on the scheme’s past returns, SIP amount and investment term. The tool also provides you with insights such as the ET money rank which show how the fund stands within its category helping you make better investment decisions. Additional snippets of information such as the fund age, assets under management (AUM), exit load and the expense ratio of the scheme are also provided in the tool.

• The SBI SIP return calculator provides an efficient and easy tool to gauge the SIP performance of SBI mutual fund schemes.
• It allows any investor with access to the internet to look at the expected returns of the scheme before making any investment decisions.
• The tool also reduces the hassle of manual calculations needed for estimating the maturity value.