ICICI SIP Calculator

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Total Maturity Amount

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SIP - Systematic Investment Plan

Turn small investments into big dreams with our SIP Calculator – see how your monthly savings grow over time!

Systematic Investment Plan (SIP) is one of the most popular ways to invest in mutual funds. Whether you're a seasoned investor or a beginner, an SIP calculator helps you plan your financial journey by estimating your future returns.

ICICI SIP Calculator

The ICICI SIP Calculator is an investment tool offered by ICICI Bank to help investors estimate the future value of their Systematic Investment Plan (SIP) investments.

ICICI Bank, one of India’s leading private banks, has designed this calculator to assist investors in planning their mutual fund investments systematically.

Through SIPs, investors contribute a fixed amount at regular intervals, which is invested in mutual funds. This method leverages the power of compounding and rupee cost averaging to generate significant returns over time.

The ICICI SIP Calculator helps you calculate the future value of your SIP based on the monthly investment, the rate of return, and the investment duration.

Formula Used in ICICI SIP Calculator

The formula to calculate the future value of an ICICI SIP investment is:

The formula for SIP is: \( FV = P \times \left[ \frac{(1 + \frac{r}{n})^{nt} - 1}{\frac{r}{n}} \right] \times (1 + \frac{r}{n}) \)

Where:

\( FV\) = Future Value

\( P\) = Monthly SIP investment

\( r\) = Annual rate of return in decimals (as a decimal, e.g., 12% = 0.12)

\( n\) = Number of compounding periods per year (Usually 12 for monthly SIPs)

\( t\) = Investment tenure in years

Example of ICICI SIP Calculation

Let's understand how to calculate ICICI SIP returns using an example:

  • \(P = 5,000\) (monthly investment)
  • \(r = 12\%\) annual interest rate (\(0.12\) as a decimal)
  • \(n = 12\) (monthly compounding periods per year)
  • \(t = 10\) years

Now, let's substituting these values into the formula:

\( FV = 5000 \times \left[ \frac{(1 + \frac{0.12}{12})^{12 \times 10} - 1}{\frac{0.12}{12}} \right] \times (1 + \frac{0.12}{12}) \)

Step-by-step calculation:

  1. Monthly interest rate: \( \frac{r}{n} = \frac{0.12}{12} = 0.01 \) (or 1%)
  2. Total compounding periods: \( nt = 12 \times 10 = 120 \)
  3. \( (1 + 0.01)^{120} = (1.01)^{120} \approx 3.30039 \)
  4. \( \frac{(3.30039 - 1)}{0.01} = \frac{2.30039}{0.01} = 230.039 \)
  5. \( FV = 5000 \times 230.039 \times 1.01 \)
  6. \( FV = 5000 \times 232.339 = 1,161,695 \)

Therefore, the future value (FV) of your SIP investment is approximately:

\( FV \approx \text{₹}1,161,695 \)

How to Use an ICICI SIP Calculator?

Using an online SIP calculator is straightforward:

  • Enter Monthly SIP Amount: Enter the fixed amount you plan to invest monthly.
  • Provide Expected Annual Return Rate: Enter the estimated return percentage (e.g., 12%).
  • Enter Investment Tenure: Specify the number of years you plan to invest.
  • View Results: The calculator will instantly display the Total Investment, Wealth Gained, and Future Value.

Why Use an ICICI SIP Calculator for Mutual Fund Investments?

SIP investments rely on the power of compounding and rupee cost averaging, making them ideal for long-term wealth creation. An SIP calculator helps you understand the impact of these benefits by giving you accurate projections.