Kotak Bank SIP Calculator

A Systematic Investment Plan (SIP) is a disciplined method to invest regularly in mutual funds. The Kotak Bank SIP Calculator helps you estimate the future value of your mutual fund investments based on your monthly contribution, expected rate of return, and investment duration.

How the Kotak Bank SIP Calculator Works

This calculator uses the compound interest formula applicable to SIPs to estimate the maturity amount. It provides a clear picture of how your monthly investments grow over time and what final corpus you can expect at the end of your investment period.

Key Inputs

1. Monthly Investment (SIP Amount): The amount you plan to invest every month.
2. Investment Period (in years): The total duration for which you will make SIP contributions.
3. Expected Annual Return (%): The average annual return you expect from your mutual fund investments.

Formula Used

The Kotak SIP calculator uses the future value of an ordinary annuity formula:

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

Where:

• FV = Future Value
• P = Monthly SIP Amount
• r = Expected monthly return (annual return ÷ 12 ÷ 100)
• n = Total number of months (years × 12)

This formula accounts for compounding returns on each monthly investment.

Benefits of Using the Kotak SIP Calculator

• Quick Estimates: Instantly find out your expected corpus.
• Goal Planning: Plan for future expenses like education, retirement, or buying a house.
• Investment Comparison: Test different combinations of SIP amount, duration, and return rate.
• Visual Clarity: See how your investment and earnings stack up over time.

Example Calculation

If you invest ₹5,000 per month for 10 years at an expected annual return of 12%:

• Investment Amount: ₹6,00,000
• Estimated Returns: ₹4,69,575
• Total Value: ₹10,69,575

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.