Zerodha SIP Calculator 2024

What is Zerodha SIP calculator?

• The Zerodha SIP calculator is a tool designed by India’s leading brokerage firm Zerodha. This tool can be used to plan your SIP investments
• A SIP involves investing a fixed amount at regular intervals over a period of time. During this period, the money invested by you grows through the power of compounding providing increased returns at the end of tenure.
• A SIP calculator makes the job of calculating the maturity amount easy. All you need to do is provide an investment amount, duration, expected rate of return and frequency of making investments, and the calculator would illustrate how your investment may grow

What is the use of Zerodha SIP calculator?

• Estimating Future Returns: SIP calculator of Zerodha allows investor to know the projected value of their investment in the time they wish to invest
• Goal Planning: Knowing how your investment might grow in the future may help you plan your goals better. Whether it is saving for your kids’ education, child’s marriage or alteration of home, you can start an SIP for each of your goals
• Well-informed decisions: Compare different SIP options from the company to choose the best investment strategy.
• Instant Results: Delivers quick calculations compared to tedious manual calculations

Why you should invest in Zerodha SIP?

• Low-cost investing: Zerodha is known for its low brokerage fees that extend to their SIP offerings. It means more of your money goes into investments
• Flexibility: You can begin, stop or modify your SIPs anytime you wish
• Wide range of options: Zerodha offers a wide variety of SIPs for different goals, allowing you to diversify your portfolio easily
• Rupee cost averaging: Regular investments through SIPs average the purchase power effectively shielding your investments from market volatility
• Convenience: All you need to do is issue a mandate with the bank, and the funds would be added to your SIP account on a monthly basis

How Zerodha SIP calculator works?

Zerodha SIP Calculator allows users to end three inputs (SIP amount, Expected return rate & investment tenure) from the user and quickly calculates the final accumulated pay

Please find that SIP calculators offer approximations, but real returns can differ because of market conditions

Formula for Calculating returns from SIP investments

Maturity Value = [ (P * t * (1 + r)^n) / ( (1 + r)^n – 1) ]

Where,

• P = Monthly SIP amount
• t = Number of years of the SIP tenure
• r = Expected rate of return

For example, suppose you make a SIP investment of Rs. 15000 for the duration of 10 years with expected returns of 12.5%. The calculator will instantly provide you with the future value of your investment

Amount Invested – ₹18, 00,000

Estimated returns – ₹ 17, 91,000

Total Value of Investment -₹ 35, 91,000

FAQ on Zerodha SIP calculator

1. How do I use the Zerodha SIP Calculator?

Enter your monthly investment amount, expected annual return rate, and investment duration, the calculator would then show the investment value and returns

2. Is the Zerodha SIP Calculator free to use?

Yes, the Zerodha SIP Calculator is completely free to use. It’s available on the Zerodha app as well as in several mutual fund aggregator sites

3. How accurate are the results from SIP calculator?

Calculator provides an estimate based on the inputs you provide without taking market conditions. That is why it is important to understand that the returns might vary from what’s shown here due to prevailing market conditions

4. Can I use the Zerodha SIP Calculator for any mutual fund or investment?

 Yes, the formula for calculating the returns is the same. You can use it for any kinds of investments

5. Does the calculator account for taxes and inflation?

No, the Zerodha SIP Calculator doesn’t factor in inflation and tax liabilities.