Motilal Oswal SIP Calculator

Total Investment

₹0

Estimate Return

₹0

Total Maturity Amount

₹0

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.

Motilal Oswal SIP Calculator

The Motilal Oswal SIP Calculator is a user-friendly tool designed by Motilal Oswal Asset Management to help investors estimate the future value of their Systematic Investment Plan (SIP).

Motilal Oswal, a well-known name in the mutual fund industry, offers this calculator to provide investors with a clear understanding of how their regular investments can grow over time.

SIP investments allow you to invest a fixed amount regularly, which is then used to buy units of a mutual fund. Over time, this regular investment helps you benefit from compounding and mitigate market volatility.

The Motilal Oswal SIP Calculator lets you calculate the estimated value of your SIP by entering details such as monthly SIP amount, rate of return, and investment period.

Formula Used in Motilal Oswal SIP Calculator

The formula to calculate the future value of an Motilal Oswal 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 Motilal Oswal SIP Calculation

Let's understand how to calculate Motilal Oswal 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 Motilal Oswal 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 Motilal Oswal 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.