SIP Mutual Fund Calculator
SIP Mutual Fund Calculator
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%
Yr
Invested Amount:
Estimated Returns:
Total Value:
What is an SIP Calculator?
An SIP Calculator is a tool used to estimate the returns on investments made through a Systematic Investment Plan. SIP is a method of investing a fixed amount in mutual funds at regular intervals (usually monthly). This approach is popular because it allows investors to average out their purchase cost and reduce the impact of market volatility. The SIP calculator helps users to estimate how much wealth they can create by investing small amounts regularly over time. It also allows users to see the future value of their investment based on the amount invested, duration, and expected rate of return.
Components of the SIP Calculator
Monthly Investment Amount::
The fixed amount that the user plans to invest every month.
Investment Period (in years/months)::
The duration for which the investment will be made. This could be in months or years.
Expected Annual Return Rate (in %)::
The rate of return the user expects from the investment. For mutual funds, this varies but is typically between 8% to 15% per annum.
Total Investment::
The sum of all the monthly investments made over the specified period.
Estimated Returns::
The profit made on the invested amount, based on the expected rate of return.
Maturity Value::
The total value of the investment at the end of the specified period, which includes both the invested amount and the returns.
How the SIP
Calculator Works
Formula for Calculating SIP Returns:
The SIP calculator uses the future value (FV) formula of compound interest to calculate the estimated returns:
FV = P [ (1+i)^n-1 ] * (1+i)/i• FV = Future value or the amount you get at maturity.
• P = Amount you invest through SIP.
• i = Compounded rate of return.
• n = Investment duration in months.
Steps:
• The user inputs the monthly SIP amount, the duration of investment, and the expected rate of return.
• The calculator applies the formula to estimate the maturity value (including the invested capital and earnings).
• It displays the total investment, returns, and maturity value for the given inputs.
Why Use Our
Sip Calculator?
Easy to Use:
Provides instant results and simplifies the calculation process.
Helps with Financial Planning:
Users can forecast the maturity amount and plan their investments accordingly.
Time-Saving:
Saves time compared to manual calculations.Saves time compared to manual calculations.
Accurate Results:
Delivers accurate and reliable projections based on the user’s input.