SIP Return Calculator: You can become a millionaire by investing a small amount in SIP for 60 months. So, today we are going to tell you the complete calculation about it.
SIP Return Calculator: In today’s era, Systematic Investment Plan (SIP) has become the most famous option for saving and investing it in the right place. SIP allows you to invest a fixed amount every month, which makes investing easy and disciplined. If you invest continuously in SIP for 60 months, then you can become a millionaire. So let’s understand how you can get returns if you invest ₹ 2300 every month for 60 months (5 years).
What is SIP and how does it work?
SIP is a way of investing in mutual funds, where you invest a fixed amount every month. The biggest advantage of SIP is that it works on the principle of ‘rupee cost averaging’. When the market is down, you get more units and when the market is up, you get fewer units, which reduces your average cost per unit.
5-year calculation on a monthly investment of ₹2300
So now if you also make a SIP investment of ₹2300 every month continuously for 60 months i.e. 5 years, then your total investment will be around ₹1,38,000. Now, let’s see how much your total corpus (final amount) can be at different return rates:
Estimated return at 15% p.a.:
Total investment: ₹1,38,000
Estimated return: ₹61,700
Total corpus: approx. ₹1,99,700
It is clear that in 5 years, your investment of ₹1.38 lakh can grow to almost ₹2 lakh, giving you a profit of more than ₹60,000.
That means if you invest ₹2300 every month, you can become a millionaire in 60 months. Yes, in 60 months i.e. 5 years, you can get an average return of up to 15 per cent on this investment. In this way, your investment amount will be only ₹1,38000 (1.4 Lakhs) in 5 years. In which your wealth gain fund will become ₹6,2887 (0.6 Lakhs). According to this, after investing for just 60 months, your total fund will become ₹2,00887 (2 Lakhs).
| Duration | SIP Amount (₹) | Future Value (₹) |
|---|---|---|
| 5 years | 2300 | 2 Lakhs |
| 1 years | 2300 | 0.3 Lakhs |
| 2 years | 2300 | 0.6 Lakhs |
| 3 years | 2300 | 1 Lakhs |
| 4 years | 2300 | 1.5 Lakhs |
| 5 years | 2300 | 2 Lakhs |
| 8 years | 2300 | 4.1 Lakhs |
| 10 years | 2300 | 6 Lakhs |
| 12 years | 2300 | 8.6 Lakhs |
| 15 years | 2300 | 14.2 Lakhs |
| 18 years | 2300 | 22.6 Lakhs |
| 20 years | 2300 | 30.5 Lakhs |
| 21 years | 2300 | 35.4 Lakhs |
| 22 years | 2300 | 41 Lakhs |
| 23 years | 2300 | 47.5 Lakhs |
| 24 years | 2300 | 54.9 Lakhs |
| 25 years | 2300 | 63.4 Lakhs |
| 26 years | 2300 | 73.2 Lakhs |
| 27 years | 2300 | 84.5 Lakhs |
| 28 years | 2300 | 97.5 Lakhs |
| 29 years | 2300 | 1.1 Crores |
| 30 years | 2300 | 1.3 Crores |
| 32 years | 2300 | 1.7 Crores |
| 35 years | 2300 | 2.6 Crores |
Now you must have clearly understood that SIP is a small step that can take you towards financial freedom. Even a small monthly investment of ₹2300 can give you good returns in 5 years, but if you continue it for 15-20 years, you can really become ‘rich’. The real formula of SIP is ‘discipline and patience’, which helps you build a strong financial future. (Note: This article is for information only and should not be considered as investment advice in any way, suggest consulting financial advisors for investment)
FAQ
Q1. How much return will you get in 5 years if you do SIP of ₹2300 every month?
A-If you do SIP of ₹2300 every month and get an average annual return of 15%, then in 5 years (60 months) you can get a return of more than ₹2 lakh.
Q2. Is it possible to become a lakhpati with a SIP of ₹2300?
A-Yes, if the SIP amount is increased or the time period is extended and the right fund is selected, then it is possible to become a lakhpati with ₹2300 per month.
Q3. What is SIP and how does it work?
A- SIP i.e. Systematic Investment Plan is a method in which you invest a fixed amount in mutual funds every month, which makes your money compound and grow.
Q4. What is the right time to invest in SIP?
A- The beauty of SIP is that you can start anytime. The sooner you start, the more you will get the benefit of compounding.
Q5. Which funds are considered best for a SIP of ₹2300?
A- For a SIP of ₹2300 you can choose high-return mutual funds like Flexi Cap, Mid Cap, or ELSS funds. Research is important before investing.
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