SBI SIP Calculator 2024

What is an SBI SIP Calculator?

The SBI SIP (Systematic Investment Plan) Calculator is an online tool that helps investors calculates the approximate future value of their SIP investments in SBI Mutual funds. The SBI calculator works on the investment amount, expected rate of returns, and the investment tenure by entering key details such as the amount that you wish to make in your preferred tenure and an expected return, you can compute the amount that you need to invest every month to meet that expectations.

Why should you start an SIP with SBI?

• SBI is of the most reputed banking institutions in India with a rich legacy and an excellent track record. It is the largest public sector bank in India with crores of Indians using it for their banking and investment purposes. Having such a great track record, millions of Indians have invested in SBI mutual funds through SIP
• By investing regularly, you can benefit from rupee cost averaging by purchasing more units of a fund when markets are low and buying few when it is higher
• The amount your investment yields regenerates additional income through the power of compounding intrinsically associated with these investments
• Contrary to lump sum investment where the investors put a significant amount of risk, SIPs are more strategic approach of investing with low risk

Advantages of Using SBI SIP Calculator

• User-Friendly: Minimalist tool requiring very little input for quick calculations.
• Goal Setting: It helps in setting achievable goals
• Decision-Making: Offers clear insights allowing you to compare and choose the best mutual funds
• Efficiency: Manual calculation of returns in an SBI Mutual Funds is a tedious process. Using this calculator allows you to calculate the estimated returns quickly

How Does SBI SIP Calculator Work?

• Input Details: Enter the monthly investment amount, investment period, and expected rate of return.
• Calculation: The calculator uses the compound interest formula to compute the future value of your investments.
• Result: Provides the estimated future value of your SIP, helping you plan your investments effectively.

Formula for calculating the returns

The global formula for calculating the returns from SIP is applicable to SBI SIP too

FV = [P x r x (1 + i)^ n – 1]/i} x (1 + i)

In which,

• FV=Future value of your investment
• P=SIP amount every month
• I=Compounded rate of return
• r=Expected rate on return
• n=Number of instalments

For example, suppose you make a SIP investment of Rs. 4000 for the duration of 5 years with expected returns of 12%. The calculator will instantly provide you with the future value of your investment

• Invested amount – ₹2,40,000
• Estimated Returns – ₹89,945
• Future value of investment – ₹3,29,945

By Changing the parameters, you can calculate the returns as per your wish

FAQ for SBI SIP Calculator

1. What is an SBI SIP Calculator?

The SBI SIP Calculator is an online tool which helps you calculate the estimated future value of SIP investments made with SBI mutual funds.

2. How accurate is the SBI SIP Calculator?

The calculator provides approximate returns based on your input. The actual returns may vary according to market conditions

3. Can I use the SBI SIP Calculator for other mutual funds?

The formula for calculating the returns is the same for all mutual funds

4. Can I determine how much should I invest monthly to attain a goal?

Yes, SBI SIP calculator allows you to input the corpus you make along with the tenure and estimate rate of return you expect. Entering these details would provide how much you need to invest every month to attain your financial goals

5. Is the SBI SIP Calculator free to use?

Yes, the calculator is available for free on the SBI website and here at Fincover website and Fincover app for android.

6. Can I rely solely on the SBI SIP Calculator for my investment decisions?

The calculator is a helpful tool, but it’s essential to seek expert opinions from financial advisors to meet your investment objectives