LIC SIP Calculator - Calculate LIC SIP Mutual Fund Returns Online

LIC SIP calculator is a straightforward online tool designed to help you estimate returns earned on your LIC Mutual Funds. This tool helps investors predict their returns on investments and plan their financial goals accordingly very easily. Continue reading this blog to gain detailed insights about the SIP calculator, its benefits, how to use the calculator and so on. 

What Is LIC SIP Calculator?

The LIC SIP Calculator is a simple online tool that helps you estimate the future value of your monthly investments through a Systematic Investment Plan (SIP). By entering your monthly contribution, investment duration, and expected return rate, the calculator shows how much wealth you can accumulate over time. It’s a quick and convenient way to plan for long-term goals and understand the power of compounding.

How To Use LIC Mutual Fund SIP Calculator?

Here is a detailed step-by-step guide to follow for the use of the LIC mutual fund SIP calculator:

• Step 1: Enter the SIP investment amount.
• Step 2: Enter the applicable rate of interest.
• Step 3: Enter the tenure. 

The Cleartax LIC SIP calculator will automatically display the invested amount, profits earned and the total wealth gained over the selected period of time. 

Formula for LIC SIP Calculator 

The LIC SIP calculator considers the following formula:

FV = P x ({[ 1+ i ] ^ n-1 } / i ) x (1+i)

Where 

• FV -  future value
• i - interest rate periodically
• n - total number of payments the investor made to date
• P - principal amount the investor chooses to invest

Example Of LIC SIP Calculator

Let us consider an example, where, Mr. Y has invested Rs. 1,000 in his LIC Systematic Investment Plan for 1 year, i.e. 12 months at an applicable rate of interest of 12%. Considering this information, the future estimated returns will be:

Returns every month: 12%/12 = 0.01

Now, putting the values in the above formula, we get,

FV = 1,000 ({[1 + 0.01] ^ {12 – 1} / 0.01) x (1 + 0.01)

= Rs. 12,809 every year

Therefore, Mr. Y’s total maturity value after one year will be Rs. 12,809, of which Rs. 809 will be the interest earned.

Benefits Of LIC SIP Calculator

Here is a detailed overview of the advantages of the LIC SIP calculator:

• Best for Beginners: The tool eases investment planning for first-time investors by calculating possible returns, which facilitates the comparison of mutual funds. 
• Straightforward and Easy to Use: The calculator requires just your monthly SIP amount, investment period, and expected return—making it simple to use, even without financial expertise.
• Set Investment Goals Easily: The calculator gives instant results, helping you set realistic goals and understand how your SIP can achieve them—making investing easier and more user-friendly.

The LIC SIP calculator is a helpful tool for planning investments in LIC Mutual Funds. It estimates potential earnings based on your monthly contributions and expected returns, giving you clarity on how much to invest. While it offers a general idea aligned with market trends, actual returns may vary. Still, it helps you strategize better and work toward clear financial goals.