What is SIP calculator?
Systematic Investment Plan (SIP) refers to a method of investing in mutual funds in a regular & systematic mode. The mode of investing is same like your investing with a bank in a recurring deposit (RD), wherein you dump a fixed amount of money (into your RD account), still the only dis similarity here is, your amount is put in not in a bank deposit but in a MF scheme (debt schemes and / or equity schemes), and therefore your investments in MF are subjected to market risks.
Systematic Investment in a MF is the solution to avoiding the drawbacks of equity investments& still appreciating the high earnings. This SIP Calculator will disclose you how small investments over a long period of time done at fixed intervals can produce much better earnings.
What is a SIP Calculator?
You can simply calculate the maturity value or return value of the investments with SIP calculator you have invested over a period of time. SIP calculator is the online tool that allows share holders to take a learned investment decision. Use SIP calculator and plan your vital financial and life objectives for instance to purchase a dream house, buy a luxury car, and live a wonderful retirement life, etc. by simply inserting a few details for example:
- Amount of Installments done till date
- Your total SIP
- Amount of SIP payments (in months)
- Yearly required ROR
The SIP calculator will make the amount of maturity of your investment in split of a second by one click automatically. Vanished are the days when agents,/ relationship managers/distributors would fool their customers by confusing the return computations and assuring unlikely returns. This SIP calculator allows share holders to plan their finances in a smart way. As this is the most user-friendly and convenient tool to understand the future value of your investment. This way it shows how slow and steady will win the race of financial independence.
Formula below is used for calculating your SIP maturity value
Formula used by SIP Calculator
Future Value = P * R * (1+i)n-1* (1 + i)
i = compounded rate of return
P = SIP amount
FV = Future Value
As for each investment installment the returns are compounded, Systematic Investment Plan done monthly will be calculated as i/12.
Likewise, day-to-day SIP will be calculated as i/365.
For example, your SIP total is Rs 20,000 for a tenure of 24 months. You expect 10 percent yearly ROR. Then the FV of your SIP would be compounded as below:
Here, P= 10000
i = 10 percent = (10/100)/12 = 1/120
N= Twelve months
FV = 10000*((1+1/120)12-1)*(1 + 1/120)
Hence, for the full investment of 1,20,000; Sum at the end of the term will be Amount 1,26,703
The SIP Calculator will make the calculations for you. The SIP calculator is easily available that you can use for computing earnings on your monthly SIP disbursements. This SIP Calculator gives the investor independence to compute the maturity value of every payments you intend to make now and in upcoming future.
The Four Step Process of SIP Calculator: The SIP calculator is easy to use &offers perfect results by replying simply four queries.
What is your SIP total?
You firstly have to insert the investment sum which are wanting to waive on regular basis. Everybody has a variable risk appetite and income structure.
Therefore, insert any sum you desire to invest say quarterly or monthly basis.
How long will you keep on the SIP?
Next you require deciding your investment perspective. Now, insert the number of months you want to do SIP payments.
When have you started the SIP?
If in the event, you have a continuing SIP then you require entering the totalof installments you have already done. If you haven’t begun, then you might enter zero.
What ROR do you assume yearly?
As the key motive for investing in MF is gaining good earnings, enter the ROR you seek to earn. With the calculator you can at tune different ROI and take your investment decisions.
Therefore, by inserting few of these details the calculator produces exact results. In turn this will allow you to estimate the earnings for your investments.
Although planning an investment in MF scheme, one needs to understand the accurate value of the capital invested and to use SIP Calculator is the top option.
As one requires to choose a way tha toffers better returns, the SIP provides the possibility of spending in the top investment scheme by doing payment of smaller amounts on a recurring basis.Besides, SIP Calculator benefits in calculating the exact value of investment after a specific time interval. It aids in taking the appropriate decision to receive preferred revenues. The MF return calculator offers numerous profits and here are few of the purposes owing to which it is desired the most.
It computes the exact worth of investments. It is useful in visualizing the values which will be produced by a MF SIP at the maturity time. Only after bearing in mind its each aspect one can maintain the accurateness. The SIP calculator is planned after thinking all the vital restrictions that includes the NPV, Internal ROR, & Inflation Rates.In this manner, it aids in producing the accurate values of the amount invested.
It establishes the monthly payable sum.At times it gets quite tough to make a decision on the amount that needs to be invested in order to earn the preferred revenues in the upcoming. The SIP Calculator aids in determining the accurate amount of money which one requires to put in the MF each month so as to meet the fiscal goals. Therefore, it helps in making an effective plan for accomplishing the investment goals.
It is effortlessly accessible by everyone. All the share holders who require appropriate information of finance-linked calculations &terminologies can even use this tool for taking an efficient plan. It offers an accessible interface that can be used also by an illiterate person. One requires to insert in some details like monthly payable amount, the investment tenure, expected ROR etc., using that it produces the accurate worth of the amount invested.The SIP planner calculator can aid you to assess the upcoming value of your investments in SIP. The calculator calculates the FV as per the inputs offered by you for instance projected returns, investment sum, & others.