SIP Calculator: Turn Rs.500/Month Into Lakhs | Free Tool

What Does "Invested Amount" Mean?

This is simply your total contribution—no magic here. If you invest Rs.2,000 monthly for 10 years, that's Rs.2,000 × 120 months = Rs.2.4 lakhs.

What Are "Estimated Returns"?

This is where compounding works its magic. Your money earns returns, then those returns earn returns. At 12% annually over 10 years, your Rs.2.4 lakh investment generates approximately Rs.2.2 lakhs in returns.

What Is "Maturity Value"?

Your final corpus = Invested Amount + Estimated Returns. In the above example: Rs.2.4 lakh + Rs.2.2 lakh = Rs.4.6 lakh final value.

Reading the Comparison Chart

Most calculators show a pie or bar chart:

• Your investment share: What you actually paid
• Growth share: What compounding added
• Healthy SIP: Growth share should be 40-60% of total value after 10+ years

POWER OF COMPOUNDING: Real Numbers from Nepal

Example 1: Starting Early (Age 25)

Monthly Investment: Rs.3,000
Duration: 30 years (until age 55)
Expected Return: 12%

Results:

• Total Invested: Rs.10.8 lakhs
• Estimated Returns: Rs.96+ lakhs
• Maturity Value: Rs.1.07 CRORE

Key Insight: Starting 10 years earlier can triple your final corpus.

Example 2: Mid-Career Start (Age 35)

Monthly Investment: Rs.5,000
Duration: 20 years (until age 55)
Expected Return: 12%

Results:

• Total Invested: Rs.12 lakhs
• Estimated Returns: Rs.37+ lakhs
• Maturity Value: Rs.49+ lakhs

Key Insight: Later start requires higher monthly investment to achieve similar goals.

Example 3: Aggressive Wealth-Building

Monthly Investment: Rs.10,000
Duration: 15 years
Expected Return: 14%

Results:

• Total Invested: Rs.18 lakhs
• Estimated Returns: Rs.39+ lakhs
• Maturity Value: Rs.57+ lakhs

Key Insight: Higher monthly investment + higher returns = faster wealth creation.

RUPEE COST AVERAGING: How SIP Protects You from Market Crashes

Real Scenario: Market Volatility Example

Monthly Investment: Rs.5,000 for 6 months

Total Invested: Rs.30,000
Total Units: 610 units
Average Cost per Unit: Rs.49.18

What This Means: Even though prices fluctuated between Rs.40-60, you averaged Rs.49.18—protecting you from overpaying at peak prices.

Lump Sum Risk: If you invested all Rs.30,000 in April (when NAV was Rs.60), you'd have only 500 units instead of 610 units. That's 110 fewer units—a significant difference over 10-20 years.

ADVANCED CALCULATOR FEATURES: Maximizing Your SIP Planning

Feature 1: Step-Up SIP Calculator

What it does: Increases your SIP amount annually (e.g., by 10%)

Real Example:

• Year 1: Rs.2,000/month
• Year 2: Rs.2,200/month (10% increase)
• Year 3: Rs.2,420/month
• ... and so on

Result over 15 years at 12% returns:

• Regular SIP: Rs.10 lakhs maturity
• Step-Up SIP: Rs.15+ lakhs maturity

Use when: Your salary increases annually (ideal for salaried professionals)

Feature 2: Goal-Based SIP Calculator

What it does: You enter your target amount (e.g., Rs.50 lakhs), and it calculates required monthly investment.

Example:

• Goal: Rs.50 lakhs in 15 years
• Expected return: 12%
• Calculator shows: Invest Rs.8,500/month

Use when: You have a specific financial goal with a deadline (child's education, home purchase)

Feature 3: Inflation-Adjusted Calculator

What it does: Factors in inflation to show real purchasing power.

Example:

• Today's goal: Rs.20 lakhs for education
• In 10 years with 6% inflation: Need Rs.35.8 lakhs
• Monthly SIP required: Rs.15,500 (not Rs.8,500 without inflation)

Use when: Planning long-term goals 10+ years away

COMMON MISTAKES PEOPLE MAKE WITH SIP CALCULATORS (Avoid These!)

❌ Mistake #1: Using Unrealistic Return Rates

Wrong: Entering 18-20% annual returns
Right: Use conservative 10-12% for Nepal equity funds
Why it matters: Overestimating returns leads to under-investing—you won't reach your goal.

❌ Mistake #2: Ignoring Inflation

Wrong: Calculating today's goal amount without inflation adjustment
Right: If you need Rs.20 lakhs in 15 years, factor 5-6% inflation—actual need: Rs.42+ lakhs
Why it matters: Your SIP might reach Rs.20 lakhs, but it won't buy what you expected.

❌ Mistake #3: Calculating Once and Never Reviewing

Wrong: Setting SIP in 2025 and forgetting until 2040
Right: Review calculations annually—adjust for salary changes, goal updates, market performance
Why it matters: Life changes—marriage, children, job switches—require SIP adjustments.

❌ Mistake #4: Choosing Wrong Fund Type for Time Horizon

Wrong: Investing in equity funds for 2-year goal
Right: Equity for 7+ years, balanced for 3-7 years, debt for 1-3 years
Why it matters: Short-term market volatility can erode capital in equity funds.

❌ Mistake #5: Stopping SIP During Market Crashes

Wrong: Pausing SIP when NEPSE drops 20%
Right: Continue SIP—you're buying more units at lower prices (rupee cost averaging)
Why it matters: Market crashes are buying opportunities—missing them hurts long-term returns.

NEPAL-SPECIFIC SIP CALCULATOR TIPS

For Nepali Investors Using Local Mutual Funds

1. Use Nepal-Specific Return Rates

• NEPSE has different volatility than Indian or global markets
• Historical Nepal equity fund returns: 10-15% over 10+ years
• Don't use international fund benchmarks—use local data

2. Consider Tax Implications

• Mutual fund returns in Nepal are taxable
• Factor in 5-15% tax on returns when setting goals
• Consult your fund provider for current tax rates

3. Currency Stability

• Unlike international SIPs dealing with currency fluctuations, Nepali SIPs are in NPR—simpler calculations
• Your calculator results are your actual NPR returns

4. Available SIP Options in Nepal Use calculators from these verified providers:

• NIBL Sahabhagita Fund (NIBL Capital)
• Siddhartha SIP (Siddhartha Capital)
• NMB Saral Bachat Fund (NMB Capital)
• NIC Asia Dynamic Debt Fund (NIC Asia Capital)
• Laxmi Subha Laxmi Kosh (Laxmi Capital)
• Nabil Flexi Cap Fund (Nabil Investment Banking)

ACTIONABLE NEXT STEPS AFTER USING SIP CALCULATOR

Step 1: Choose Your SIP Provider (Day 1)

Based on calculator results, select a mutual fund matching your:

• Risk appetite (equity, balanced, or debt)
• Time horizon (short, medium, long-term)
• Minimum investment capacity

Top providers in Nepal: Listed above—compare their historical returns and fund types.

Step 2: Open Demat Account (Day 2-7)

Required for SIP investments in Nepal:

• Visit any commercial bank offering Demat services
• Submit KYC documents (citizenship, PAN, photos, bank account)
• Activation takes 3-7 days

Cost: Rs.500-1,000 account opening + Rs.400-600 annual maintenance

Step 3: Complete Fund-Specific Registration (Day 8-10)

• Fill fund house application form (NIBL, Siddhartha, NMB, etc.)
• Link your Demat account
• Set up auto-debit from bank account for hassle-free monthly SIP

Step 4: Set Your First SIP (Day 11)

Enter these details:

• Monthly investment amount (from your calculator)
• SIP date (choose 1st or 5th of month—salary timing)
• Auto-debit authorization

Pro tip: Start with 80% of calculated amount, increase by 10% every 6 months as you build confidence.

Step 5: Automate & Track (Ongoing)

• Enable auto-debit—never miss a SIP installment
• Set annual calendar reminder to review using calculator
• Track fund performance quarterly (but don't panic over short-term dips)

FREQUENTLY ASKED QUESTIONS: SIP Calculator Edition

1: "Can I trust online SIP calculator results?"

Answer: Yes, if using calculators from registered fund houses (NIBL, Siddhartha, NMB Capital). They use standard compound interest formulas. However, results are estimates—actual returns depend on market performance.

2: "What if actual returns are lower than my calculation?"

Answer: This is why we emphasize conservative estimates (10-12%). If you used realistic rates, actual returns may be ±2-3%. Long-term averages smooth out volatility.

3: "Should I calculate based on best-case or worst-case returns?"

Answer: Always calculate with conservative returns (10-11%). This builds a safety margin. If actual returns are 13-14%, you'll exceed your goal.

4: "How often should I recalculate?"

Answer: Annually or when major life events occur (marriage, child birth, job change). Markets fluctuate yearly—adjust expectations based on recent 3-5 year fund performance.

5: "Can I use one calculator for all fund types?"

Answer: Yes, but adjust return rates:

• Equity funds: 12-14%
• Balanced funds: 10-12%
• Debt funds: 7-9%

Different funds = different return expectations.

6: "What if I need to withdraw before the calculated maturity date?"

Answer: SIPs are flexible—you can withdraw anytime. However, early withdrawal:

• Loses compounding benefits
• May incur exit loads (0.5-2% in first 1-2 years)
• Reduces your goal corpus significantly

Use calculator to see impact: Reduce time period to see new maturity value.

7: "Is Rs.500/month too small to bother calculating?"

Answer: Absolutely not! Rs.500/month for 20 years at 12% = Rs.5+ lakh corpus. Small amounts compound significantly over time. Start small, increase gradually.

8: How do I calculate SIP returns manually?

Answer: While calculators are easier, you can calculate SIP returns using the formula: M = P × [(1 + i)^n - 1] / i × (1 + i)

Where:

• M = Maturity amount
• P = Monthly investment
• i = Monthly rate of return (annual rate ÷ 12 ÷ 100)
• n = Total number of months

Example: Rs.5,000 monthly for 10 years at 12% annual return:

• i = 12 ÷ 12 ÷ 100 = 0.01
• n = 10 × 12 = 120 months
• Result: Approximately Rs.11.5 lakhs maturity value

9: Are SIP calculator results accurate and reliable?

Answer: SIP calculators provide estimates, not guarantees. They're 100% accurate mathematically using compound interest formulas, but actual returns depend on market performance. Calculators from registered fund houses (Siddhartha Capital, Nabil Invest, NIC Asia Capital, NMB Capital, NIMB Ace Capital) use standard formulas and are reliable for planning. The key is using conservative return estimates (10-12% for equity funds in Nepal). Actual returns may vary ±2-4% annually due to market volatility, but long-term averages tend to align with historical data.

10: What will be the return of Rs.5,000 SIP for 5 years?

Answer: Rs.5,000 monthly SIP for 5 years at typical Nepal mutual fund rates:

At 12% annual return (equity funds):

• Total Invested: Rs.3,00,000
• Estimated Returns: Rs.1,15,000
• Maturity Value: Rs.4,15,000

At 10% annual return (balanced funds):

• Total Invested: Rs.3,00,000
• Estimated Returns: Rs.88,000
• Maturity Value: Rs.3,88,000

Use calculator

11: How much should I invest in SIP monthly to get good returns?

Answer: The "right" SIP amount depends on your financial goal and timeline, not arbitrary numbers. Use this framework:

Step 1: Define your goal

• Child's education: Rs.30 lakhs in 15 years?
• Retirement: Rs.1 crore in 25 years?
• Home down payment: Rs.15 lakhs in 7 years?

Step 2: Use goal-based calculation Example: Need Rs.50 lakhs in 15 years at 12% return

• Required monthly SIP: Rs.8,500

General Guidelines (% of monthly income):

• Beginners: 10-15% of monthly income
• Aggressive savers: 20-30% of monthly income
• Earning Rs.30,000/month → Start with Rs.3,000-5,000 SIP
• Earning Rs.60,000/month → Start with Rs.8,000-12,000 SIP

Pro Tip: Start small (Rs.2,000-3,000) and increase by Rs.1,000 every 6-12 months as you get comfortable.

12: What is the best SIP amount for a beginner in Nepal?

Answer: Start with Rs.2,000-5,000 monthly if you're a beginner. Here's why:

Rs.2,000/month benefits:

• Affordable for most salaried professionals
• Builds investing discipline
• Over 15 years at 12%: Grows to Rs.10+ lakhs
• Low enough to sustain during income fluctuations

Starting strategies:

• Conservative: Rs.2,000 for first 6 months, then review
• Moderate: Rs.3,000-4,000 if comfortable with savings
• Aggressive: Rs.5,000+ if earning Rs.50,000+ monthly

Don't wait for larger amounts — Rs.2,000 started today is better than Rs.10,000 started 5 years later due to compounding. Use SIP calculators from NMB Capital or NIMB Ace Capital to see how your chosen amount grows.

Q13: Which SIP is better in Nepal—Siddhartha, Nabil, or NMB?

Answer: There's no single "better" SIP—the best choice depends on your investment goals, risk tolerance, and time horizon. Here's a comparison:

Siddhartha Systematic Investment Scheme (SSIS)

• Type: Open-ended equity fund
• Risk level: Moderate to high
• Historical returns: 10-14% annually (5+ years)
• Best for: Long-term wealth creation (10+ years), retirement planning
• Minimum SIP: Rs.1,000/month
• Strength: Strong track record, large investor base

Nabil Flexi Cap Fund

• Type: Flexi-cap equity fund
• Risk level: Moderate to high
• Historical returns: 11-15% annually (equity exposure)
• Best for: Aggressive growth, diversified equity exposure
• Minimum SIP: Rs.2,000/month (varies)
• Strength: Flexibility to invest across market caps

NMB Saral Bachat Fund-E

• Type: Balanced/equity fund
• Risk level: Moderate
• Historical returns: 9-12% annually
• Best for: Balanced approach, medium-term goals (5-10 years)
• Minimum SIP: Rs.1,000/month
• Strength: Lower volatility than pure equity

Quick decision guide:

• Age 20-35 + 15+ year horizon: Siddhartha SIP or Nabil Flexi Cap (equity growth)
• Age 35-50 + 7-12 year horizon: NMB Saral Bachat (balanced)
• Risk-averse investors: NIC Asia Dynamic Debt Fund (debt, 7-9% returns)

Use calculators from each provider to compare how Rs.5,000 monthly grows over your timeline at their historical return rates.

Q14: Can I register for SIP online without visiting a branch?

Answer: Yes, but partially. Here's what you can do online vs. offline:

Fully online process (50% of steps): ✅ Calculate SIP using online calculators ✅ Fill online SIP registration form (NIMB, some others) ✅ Submit digital application with scanned documents ✅ Set auto-debit authorization (some banks offer e-mandates)

Requires in-person visit (initial setup): ❌ Opening Demat account (first time—physical verification needed) ❌ KYC verification (citizenship/PAN physical verification) ❌ First SIP mandate signing (depends on fund house policy)

Best hybrid approach:

1. Complete Demat + KYC at bank branch (one-time, 1-2 hours)
2. Register for SIP online at fund house website (10 minutes)
3. Set auto-debit through net banking (5 minutes)
4. All future modifications (amount changes, pauses) done online

Funds with best online experience:

• NIMB Ace Capital: Most comprehensive online registration (mutualfund.nimbacecapital.com)
• Siddhartha Capital: Online forms available (siddharthacapital.com)
• Nabil Invest: Digital application submission (nabilinvest.com.np)

Future: Nepal is moving toward fully digital SIP registration—expect more online options by 2026.

15: What happens if I miss a SIP payment?

Answer: Missing SIP payments is flexible—no penalties, but there are consequences:

Immediate effects:

• No penalty charges: Unlike loan EMIs, missing SIP doesn't incur fines
• Auto-debit failure: If insufficient bank balance, payment simply fails
• No units purchased: That month's investment doesn't happen—you miss out on that month's NAV pricing
• SIP continues: Next month's payment resumes as usual (if balance available)

After multiple missed payments:

• 2-3 consecutive misses: Fund house sends reminder/alert
• 4-6 consecutive misses: SIP may be auto-deactivated (varies by fund)
• Reactivation: Contact fund house to restart—usually just requires updating bank mandate

Impact on your goals:

• Delayed goal achievement: Missing 12 payments in a 10-year SIP means you'll fall short of target
• Lost compounding: Each missed month is lost growth opportunity
• Example: Missing Rs.5,000/month for 6 months = Rs.30,000 not invested = Rs.80,000+ lost potential value over 15 years at 12%

What to do if facing financial difficulty:

1. Reduce SIP amount: Decrease from Rs.5,000 to Rs.2,000 instead of stopping completely
2. Pause temporarily: Most funds allow 2-3 month breaks per year (inform in advance)
3. Switch to quarterly: Change from monthly to quarterly SIP for lower frequency
4. Don't redeem: Avoid withdrawing existing units—let them compound

Best practice: Keep 2-3 months' SIP amount as buffer in your bank account to avoid accidental misses.

REAL SUCCESS STORY: How Ramesh Used SIP Calculator to Build Rs.50 Lakhs

Background:

• Age 28, monthly salary Rs.40,000
• Goal: Rs.50 lakhs by age 48 (20 years) for child's education

Calculator Results:

• Monthly SIP needed: Rs.6,000
• Expected return: 12%
• Total investment: Rs.14.4 lakhs
• Estimated returns: Rs.35.6 lakhs
• Maturity value: Rs.50 lakhs

Action Taken:

• Opened Demat with Nabil Bank
• Started SIP in Nabil Flexi Cap Fund
• Set auto-debit for 5th of every month
• Increased SIP by Rs.1,000 every 2 years (step-up)

Result After 12 Years:

• Actual value: Rs.32 lakhs (on track—60% of goal achieved)
• Confidence in reaching Rs.50+ lakhs by year 20

Key Takeaway: Calculator gave clarity—Rs.6,000 seemed doable, so Ramesh started immediately instead of delaying.

FINAL CHECKLIST: Before Starting Your SIP

✅ Used calculator with conservative 10-12% return rate
✅ Calculated multiple scenarios (different amounts, durations)
✅ Adjusted for inflation if goal is 10+ years away
✅ Chosen SIP amount that doesn't strain monthly budget
✅ Selected appropriate fund type for time horizon
✅ Opened Demat account
✅ Registered with mutual fund provider
✅ Set up auto-debit for hassle-free investing
✅ Marked calendar for annual review

CONCLUSION: Your SIP Calculator is Your Wealth-Building Blueprint

A SIP calculator isn't just a tool—it's your personalized roadmap from today's financial uncertainty to tomorrow's wealth. In 30 seconds, you've transformed vague goals ("I want to save more") into actionable plans ("I'll invest Rs.5,000 monthly for 15 years").

The difference between dreamers and achievers? Achievers calculate, then act. You've done the calculation—now take the first step.

Start your SIP journey today:

1. Use the calculator one more time with your final numbers
2. Screenshot your results (motivation when markets dip)
3. Open your Demat account this week
4. Set your first SIP by month-end

Remember: Rs.1,000 invested today is worth more than Rs.10,000 invested 10 years from now. Time is your biggest ally—compounding works only if you start.

RESOURCES: SIP Calculators in Nepal

Official Fund House Calculators:

• NIBL Capital Markets: [www.niblcapital.com]
• Siddhartha Capital: [www.siddharthacapital.com]
• NMB Capital: [www.nmbcapital.com]
• NIC Asia Capital: [www.nicasiacapital.com]
• Laxmi Capital: [www.laxmicapital.com]
• Nabil Investment Banking: [www.nabilinvest.com]