SIP CALCULATOR

What is an SIP Calculator?

An SIP Calculator is an online tool that allows you to estimate the returns on your Mutual Fund investments, usually before you invest in them through one or more Systematic Investment Plans. It is simply a roadmap to help an investor seamlessly integrate SIP investments in his/her portfolio. However, the actual returns offered by a Mutual Fund scheme varies depending on various factors.

Benefits of the SIP Calculator

An investor can get multiple benefits from investing in SIP over the long term. Here is a list of advantages you can get if you invest in that platform.

1. Easy to use

SIP calculator is very user friendly. It provides an indicative value of your investments instantaneously and allows you to consider different scenarios by changing the input variables such as monthly SIP amount, expected rate of return, tenure, etc.

2. Helps in deciding the SIP Amount

SIP calculator helps you to make the decision about how much money you need to invest in Mutual Funds via SIP to earn the desired returns.

3. User-Oriented

You can easily estimate your investment needs with our user-friendly SIP Calculator. It is suitable for anyone, is completely free of cost and can be used any number of times.

How does the SIP Return Calculator work?

• Step 1: Choose your target or investment amount
• Step 2: Enter your investment or SIP amount
• Step 3: Select the SIP duration
• Step 4: Enter the expected rate of return

After entering all the values, click ‘Calculate’. The calculator will instantly display the estimated maturity value or the required investment amount to achieve your goal.

For example, if Rs. 10,000 per month is invested for 5 years at 12% on investor will receive Rs. 8,11,036 on maturity.

What is an SIP Calculator and how does it work?

SIP (Systematic Investment Plan) Calculators are valuable tools for Mutual Fund investors to project their investment returns. These calculators offer valuable insights that empower investors to make informed decisions.

This is the formula used by the SIP calculator:

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

• M represents the amount you will receive upon maturity.
• n stands for the number of payments you have made.
• i is the periodic rate of interest.

Assume you invest Rs 1,000 monthly for a year, at a 12% annual interest rate. To compute the monthly interest rate, you have to divide 12% by <12> months, which yields a monthly rate of 1% or 0.01. By applying the above formula, your maturity amount (M) is approximately Rs 12,809 after a year.