The mutual fund SIP calculator aids in your estimation of the potential returns from a SIP.
To increase your money as wisely as possible, you might use a Systematic Investment Plan, or SIP, to make tiny investments in mutual funds at regular intervals. An online tool called a SIP calculator can assist you in estimating the profits from your SIP investment.
What is SIP Calculator?
Using an assumed rate of return and the investment’s projected value after a specific number of years, a Systematic Investment Plan (SIP) calculator determines the return on your SIP investment.
Since SIPs usually require a monthly payment, the manual computation can be a little labor-intensive. The returns for each of these payments will vary because the holding period for each monthly contribution would vary at any given time.
Component of SIP calculators
- The SIP calculator has a few essential parts, so let’s examine it from both angles.
- To determine the target the SIP will grow into. The SIP corpus calculator takes the monthly SIP amount, moves, if any, CAGR returns annually, time duration, SIP date, etc., as the inputs.
- The targeted monthly SIP contribution required can be calculated using the SIP contribution calculator using the end target amount, step-up if applicable, CAGR return annually, time duration, SIP date, etc., as inputs.
How does the SIP Calculator work?
Compound interest is a mathematical formula that SIP calculators use to calculate investment returns. The calculator evaluates the returns while taking compounding frequency into account. The SIP calculator also asks users to enter their investment period, the estimated rate of return, and the monthly investment amount they wish to make.
The maturity amount and wealth to be earned from the mutual fund investments will both be calculated automatically by the online SIP calculator.
The SIP Calculator follows the following formula:
M is equal to P x [(1+i)n – 1)] / I x (1+i).
- M is the maturity amount that you are owed (tentative).
- P is the investment’s principle.
- The interest rate is i.
- The total amount of payments you have made is n.
Advantages of SIP Calculator
Immediate Results: It has never been simpler to determine the future worth of your investments. There is no need for time-consuming figure crunching. The ET Money SIP Calculator consistently produces rapid and accurate results based on your inputs.
Simple to Use and Understand: You don’t need to be a math wiz to determine your investment requirements because the SIP Calculator is straightforward to use.
Aids You in Making Knowledgeable Investment Decisions: Planning your investments is essential if you are saving for a specific objective. To attain your investing goal with the least amount of trouble, use the SIP Calculator to estimate how much you need to keep.
Find the best investment possibilities: We go far beyond other calculators, which show you the minimum monthly commitment amount or the estimated future worth of your investments. We provide you with a list of funds to help you reach your financial goals in addition to upholding our promise to offer you access to this service.
Inflation-Adjusted Results: Everything increases in price over time due to inflation, and most SIP calculators in India cannot give you numbers that have been adjusted for inflation. You only need to click a button to get the results inflation adjusted for your investment goals because we took care of this for you.
Experts in mutual funds believe that SIPs are more profitable than lump sum investments. It assists you in developing sound money management skills and a diligent saving habit. The SIP calculator online is a valuable tool for estimating your expected returns after an investment term, which may also provide you with information about how many SIPs you should set up.