SIP Calculator

SIP Calculator

Are you thinking about making a financial investment via SIP? Are you having trouble understanding how to determine the total value of your return? Do you find that the SIP calculation as a whole is too confusing? You don't need to stress about it anymore because Calculator Seek has provided you with a SIP return calculator online that will assist you in quickly calculating the returns on your SIP mutual fund investments. After you have entered your values into our SIP calculator online, you will immediately be provided with the value of your return.

What is a SIP?

To begin, let's have a little discussion on what SIP is. A systematic investment plan, or SIP, allows you to invest a predetermined amount of money at regular intervals, such as weekly, quarterly, or monthly, in the mutual funds of your choice.

At certain intervals, the amount will be taken out of your bank account and invested into the funds. You invest the same amount of money regardless of whether the market is low or high since you have already decided how much to invest. In addition to this, the rate of return on your investment is consistent.

In addition, you are free to cancel your SIP whenever you like without incurring any additional fees. Therefore, if you are looking for a strategy to save money without taking any risks or seeing the value of your savings decrease, a systematic investment plan (SIP) investment may be a good choice for you to consider.

What is a SIP calculator?

The SIP calculator is a straightforward but ingenious tool that can assist you in determining the rates of return you can expect from the investments in mutual funds that you make using the SIP method.

The purpose of systematic investment plan (SIP) calculators is to provide prospective investors with information regarding their investments in mutual funds. Nevertheless, the actual return on investment from the mutual fund plan can be somewhat variable based on a number of different circumstances.
The expense ratio and the exit burden are not taken into consideration by the SIP calculation (if any). Instead, it is an online application that determines the amount of money that should be contributed to a SIP based on the annual return that is anticipated.

Benefits of SIP

There are many benefits that you can gain from SIP. There is a long list of benefits that may be attained by a person via the use of systematic investment plans (SIPs), even if they invest low amounts of money regularly.

To give you a quick rundown of the advantages of choosing SIPs, here are a few benefits to consider: Ideal for those who like to play it safe This investment is perfect for long-term investors who wish to minimize their exposure to market volatility and, as a result, risk. Such individuals should consider making this investment. The investor is not required to make a large one-time payment but rather is expected to make numerous smaller payments on a consistent basis. The investor in the mutual fund does not need to be concerned about the finances. SIPs are available to investors of any financial background, even those who do not have a stable source of income.

No extra charges on SIP investment
The investor is not responsible for paying any additional fees, and the entirety of the money is put toward the purchase of units that are added to the investor's lot. When you use the SIP mutual fund program, you won't need to make any further deposits to get started.

Simplicity of Use

SIP is simple to comprehend as well as use. SIP investments are governed by a limited number of terms and conditions; hence, individuals who are just beginning their careers as investors in mutual funds may take into consideration the openness of this investment and find it easier to get started with it. The only thing that the investor needs to do is select one of the many available mutual fund schemes and then set up an automatic withdrawal of a predetermined amount from their bank account to put toward the investment on a monthly basis. It is simple to sign up for SIPs online, a process that is both quick and without hassles. After the application has been reviewed and approved by the relevant authorities (which typically takes around three weeks), the investor will have unrestricted access to the accounts associated with his mutual fund.

Alterable investment options

The SIP is quite flexible, and it depends on the investor to decide whether or not they will continue to invest in the fund. It is possible to abandon the plan in the event that the investor is unable to make additional investments. If the investor changes their mind about continuing with the investment, they won't be subject to any fines either.

How Does Our SIP Calculator Works?

Let's talk about the functionality of this SIP calculator now that we've gone over what SIP is, what its benefits are, and what its calculator is supposed to do for you.

Our SIP Calculator makes use of a specific formula that, after applying those variables, provides you with the return value that should be expected from your SIP investment.

First, let's take a look at our formula and see what it looks like:

R = I * [{(1 + p) n - 1} / p] * (1 + p)

R = the amount you receive when the investment matures

I = the amount you invest on a consistent basis

p = the interest rate on a regular basis

n = the total number of payments that you have already made/ or will make

In order to help you understand how this formula performs a calculation and gain a deeper understanding of how the SIP return value calculation works, we will walk you through a few instances.

Example 1:

Let's imagine that Anwar has decided that during the next ten years, he wants to purchase a new residence for himself. He brings in 80,000 INR every month, and he already has close to 50,000 INR saved up. He needs around another half a million extra. A buddy of his suggested that he set up a systematic investment plan (SIP) for his money so that he could more easily save it. He has made the decision to put 25,000 Indian Rupees (INR) every month into a systematic investment plan (SIP) for the next ten years. The rate of interest that he will obtain on it is going to be 20%.

Let's find out how much money Anwar will get on his investment, in the end.

R = I * [{(1 + p) n - 1} / p] * (1 + p)

R = ?

I = 25,000

p = 12% ; the return rate per month = p = 12/ 100/ 12 = 0.01

n = 10 (years) * 12 (months) = 120 months

Adding values into the formula

R = 25,000 [{(1 + 0.01) 120 - 1} / 0.01] * (1 + 0.01)

R = 58,08,477

Anwar will receive around a total of 58 lakhs INR after ten years over his SIP investment.

Example 2:

Let's look at yet another example. Imagine that Sarah has decided that she wants to put some money away for the future and that she will do so by investing in mutual funds using the SIP investment method. She intends to make an investment of 5,000 Indian Rupees (INR) each month for a period of two years, but she is curious as to what the sum will amount to after those two years. The rate of return on investments is 12%.

R = ?

I = 5,000

p = 12% / 100 = 0.01

n = 2 years = 2 * 12 = 24

The formula will look like this:

R = 5,000 [{(1 + 0.01) 24 - 1} / 0.01] * (1 + 0.01)

R = 1,37,216

Why Should You Use Our Calculator?

Our SIP calculator is available online for free.
There are no requirements for any additional information beyond that specified on the investor's monthly investments, the duration of those investments, and the rate of return on the fund in which they invest. The user interface is simple and straightforward. Even people who have never invested before can use our SIP calculator to learn more about SIP investments.

You can easily have the entire calculation within a few clicks. With that help, investors can plan their investments in a way that will help them reach their long-term financial goals.

So, start your SIP investments now with the help of our SIP Calculator online.

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