SIP Calculator 2023

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What is a SIP Calculator ?

Systematic Investment Plan (SIP) calculator is a tool that Allows you to how much your mutual fund investments through SIP are likely to earn over a period of time. In the past few years, mutual fund SIPs have become a popular way for millennials to invest.

However, the actual returns offered by a mutual fund scheme can vary depending on various factors, such as market conditions, inflation, and economic changes. It is essential to note that SIP calculators do not provide clarification on exit load and expense ratio, if any.

What does the SIP Calculator do?

SIP plan calculators work based on the values entered by users. You must enter the amount of investment, frequency of investment, duration of investment, and expected returns. The SIP return calculator is designed based on the compound interest formula, which powers the mutual fund returns. It calculates the wealth gain and expected returns for your monthly SIP investment and provides a rough estimate of the maturity amount based on a projected annual return rate.

Use the following formula to understand how a SIP calculator works:

FV = P [(1+i)^n-1] * (1+i)/i

FV = Future value or the amount of maturity.

P = Amount you invest through SIP.

i = Compounded rate of return.

n = Investment duration in months.

r = Expected rate of return.

For example, if you invest Rs 2,000 per month for a tenure of 24 months and expect a 12% annual rate of return (r), you can calculate your future value (FV) as follows:

i = r/100/12 or 0.01 FV = 2000 * [(1+0.01)^24 - 1] * (1+0.01)/0.01 Your estimated maturity amount is Rs 54,486.

How SIP Return Calculator Helps You?

Several mutual fund experts say that SIPs are a better way to invest money than putting money in all at once. It helps you be responsible with your money and get into the habit of saving, which will help you in the long run.

An online SIP calculator is a useful tool that shows you how much money you can expect to earn after the investment period is over. SIP calculators have a number of benefits, such as:

Help you figure out how much money you want to invest. Keeping track of how much you have spent. Giving you an estimate of how much you will get back.

How to Use Systematic Investment Plan Calculator?

  1. Prior to investing, decide whether you want to do so on a monthly or lump sum basis.
  2. The amount you wish to invest is entered next.
  3. Choose the Duration third You want to invest in years.
  4. Fourth, enter the expected rate of return.
  5. fifth, Simply click the calculate button to obtain your projected investment details.

Advantages of Using Systematic Investment Plan Calculator offers the best SIP calculator, which provides the following advantages:

Helping you plan your investment based on the amount and tenure. Help you to calculate an estimation of the total value of investments at the end of your SIP period. Showing accurate results and saving time required during manual calculation. Ensuring that your savings portfolio is as per your requirements and financial needs.

the actual return from the mutual fund scheme may change and depends on several factors. It is essential to remember that the SIP calculator does not account for the exit load and expense ratio

Disclaimer: The information published is only meant to be educational and informative. It should not be taken as financial advice. Investing in the stock market comes with risks. Before making any investment decisions, readers should carefully think about their own investment goals and how much risk they are willing to take. The author and website don't promise that the information is correct, complete, or useful, and they aren't responsible for any losses or damages that may happen as a result of using this information. Before making any investment decisions, the reader should talk to a qualified financial advisor.