Canara Bank SIP Calculator

Canara Bank SIP Calculator

The Canara Bank SIP Calculator is a smart tool that helps you estimate the future value of your mutual fund investments through a Systematic Investment Plan (SIP). Whether you’re planning for long-term wealth creation, retirement, or financial goals like buying a house or funding education, this calculator provides an accurate projection of your returns based on key inputs.

How the Canara Bank SIP Calculator Works

A SIP allows investors to contribute a fixed amount regularly (monthly or quarterly) into mutual funds. The Canara Bank SIP Calculator uses the compound interest formula and assumes consistent returns to project the maturity amount.

Key Inputs Required:

• Monthly Investment Amount (₹): The fixed sum you plan to invest every month.
• Investment Period (Years): The total duration for which you’ll invest through SIP.
• Expected Annual Return (%): The average annual return you expect from the mutual fund (commonly 10–14% for equity-oriented funds).

Formula Used:

The calculator uses the future value of an annuity formula:

FV = P × [(1 + r)^n – 1] × (1 + r) / r

Where:

• FV = Future Value of the SIP
• P = Monthly Investment
• r = Expected return rate per month (annual return ÷ 12 ÷ 100)
• n = Total number of monthly investments (years × 12)

Example Calculation

Suppose you invest ₹5,000 every month for 10 years at an expected return of 12% p.a.:

• Monthly return = 12 ÷ 12 ÷ 100 = 0.01
• Total months = 10 × 12 = 120

FV = 5000 × [(1 + 0.01)^120 – 1] × (1 + 0.01) / 0.01

= ₹11.61 lakh (approx.)

Benefits of Using the SIP Calculator

• Quick projections: Instantly view your investment’s future value.
• Goal planning: Helps in setting realistic financial goals.
• Customizable: Change inputs to compare different scenarios.
• No manual effort: Avoid complex calculations.

Disclaimer : The results given by the above calculator are for illustration purpose only. They are often based on a number of assumptions. The results given are in no way any guarantee of the returns that will be given. Investments in stock markets and securities markets are subject to market risks and other risks. There is no guarantee of the return that will be actually given. Investment in other financial products may also be subject to market risks and other risks. There is no guarantee of the returns that will be given by them. The calculator also does not make any recommendation directly or indirectly. Please consult a registered Financial Advisor before taking any investment decision.