# SIP Calculator: Turn Rs 100 into a million – see the Calculation!

## Even by investing just Rs100 per day, you can create a wealth of a million. Find out how

The most significant functional benefit of investing in the market is the power of compounding. Investing systematically and strategically can do magic for you. Even by investing just Rs 100 per day, you can create a wealth of a million.

If you invest Rs. 100 per day in a market-linked investment process like Systematic Investment Plan (SIP), you can create a large corpus in the long term. A daily investment of Rs. 100 means Rs. 3000 a month and Rs. 36,500 a year. If you are baffled by this math, do not worry. By utilising an **SIP calculator, **you can be free from doing these complicated calculations. It will also give you a clear idea of your investments and returns.

## What is an SIP Calculator?

An SIP calculator is a simple online tool that you may use to calculate returns on a mutual fund investment through SIPs. These plans let you invest in mutual funds in instalments in a manageable amount. Some benefits of using this tool include the following:

● Determines the investment amount

● Estimates the total amount invested

● Calculates the investment returns

An **SIP calculator** uses the following formula to calculate the returns:

M = P × ({[1 + i]^n – 1} / i) × (1 + i)

Here,

M = the amount you receive upon maturity

P = the amount you invest at regular intervals

n = the number of payments you have made

i = the periodic rate of interest

For instance, if you invest Rs. 3,000 per month for 12 months at a periodic interest rate of 12%, then the return will be Rs. 2,299 for the year. After an investment of Rs. 36,000, you will accumulate a wealth of Rs. 38,299. The interest rate may differ according to market conditions, which might change the return estimates.

**Calculations for Rs. 100 Per Day for 15 Years**

Let’s assume you invest Rs. 100 a day, leading to an investment of Rs. 3,000 per month through mutual fund SIPs. At a return rate of 12%, your expected amount will be Rs. 15,13,728 in 15 years, with a total investment of Rs. 5,40,000. Your long-term gains over this period will be Rs. 9,73,728.

**Calculations for Rs. 100 Per Day for 20 Years**

If you take this monthly investment forward to 20 years, your expected corpus will be Rs. 29,97,444 with an investment of Rs. 7,20,000. Your long-term capital gain for this period will be Rs. 22,77,444.

**Calculations for Rs. 100 Per Day for 25 Years**

The investment grows much after 20 years. After 25 years, your investment will be Rs. 9,00,000, but your long-term capital gains will be Rs. 47,92,905. That means your expected corpus will be Rs. 56,92,905.

**Calculations for Rs. 100 Per Day for 30 Years**

With a total investment of Rs. 10,80,000, your long-term capital gains will be Rs. 95,09,741, and your expected corpus will be Rs. 1,05,89,741.

Although 30 years is a long time, you can build a significant corpus by starting investments early at around 25 years. This way, you can build a corpus of over Rs. 1 Crore by the time you reach 55 years of age. All this is possible with a small investment of Rs. 100 per day.

## How Does SIP Convert Rs 100 into a Million?

Below are a few ways how an **SIP** plan converts Rs. 100 into a million and makes you rich:

● **Easy and Simple Investment: **Despite being small, regular investment is essential for creating wealth.

● **Inculcates the Habit of Saving: **SIPs require periodic investments. Over time, you inculcate the habit of setting aside a fixed monthly amount from your income for investing.

● **Benefits of Starting Early:** Investing early gives your wealth maximum time to grow. You can start with a small investment of Rs. 100 per day and increase the amount if your finances allow. Even if you do not increase the investment amount, it will be enough to accumulate a million over time.

● **Rupee Cost Averaging: **In the volatile equity market, mutual fund SIPs avert the associated risks. You can buy more units when the market goes down and fewer units when the market is expensive, reducing the average unit cost. This strategy minimises the volatility factor, increasing your overall gains.

● **Power of Compounding: **Even with a small monthly investment of Rs. 100, you can grow your wealth through compounding. If you stay invested for an extended period of time, like 10, 20, or 30 years, you can build a substantial corpus and achieve long-term financial goals by earning interest over interest.

If you wish to create wealth and become a millionaire, an **SIP** can help you with the power of compounding interest. Do not forget to use the SIP calculator to simplify the job. With the correct information and a firm strategy, you can reach the milestone of a million with just Rs. 100 a day.

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