What is a Mutual Fund SIP Calculator?
The Mutual Fund SIP Calculator is a financial tool that is easy to use and helps in calculating the amount of return you want to make from your monthly SIP in mutual funds. As SIPs are becoming popular in today’s generation, this calculator will further ease the way of financial planning, and make it smart as well. Just choose your monthly investment, the rate of return, the number of years and the calculator will instantly show you the wealth you’d make over time. Additionally, actual returns may differ based on market performance and fluctuations. However, this tool provides you with a close estimate of your matured amount. It’s great for getting an instant idea of your investment.
How Does Mutual Funds SIP Calculator Work?
You can now make your investment planning easy and super with the help of our Mutual Fund SIP Calculator. If you are saving to buy a flat, fly to your dream destination or just want to save for your child’s education, this tool lets you see how your monthly SIP amounts can grow over time. Here’s how you can use it:
- Choose the Investment Mode: If you are going to invest on a regular basis every month, choose SIP. You can check lumpsum separately for a one-time investment.
- Choose the Monthly Investment Amount: Choose the amount of money you’d like to invest each month by dragging the bar It can range from ₹500 to ₹5,00,000.
- Choose Expected Return Rate: Determine the rate of return you are expecting to earn from your SIP mutual fund investment. You can adjust the value to be between 1% and 100%.
- Choose the Time Period: Choose your time period, it could be as short as 1 year or as long as 40 years, depending on your financial plan.
- Click ‘Calculate’: Click ‘Calculate’ once you have selected the details.
- View Your Results: See immediate returns in total investment, wealth gained, and total wealth. You’ll also get a year-by-year chart, a simple summary and a distribution chart.
Formula For Mutual Funds SIP Calculator
To give you a better understanding of how your SIP return is estimated, here is an overview of the formula that is used for the Mutual Fund SIP Calculator:
M = P × ({[1 + i]ⁿ – 1} / i) × (1 + i)
In this;
- M = Maturity value.
- P = The amount that you invest every month.
- n = Number of monthly payments in all.
- i= Monthly interest rate.
This formula will help you get an approximate result of how much money the SIP investments will generate with increasing time. Let’s understand better with an example:
You have been investing ₹2,000 every month for the time period of 10 years, and expect a return of 12% per annum.
- P = ₹2,000
- n = 10 years x 12 months = 120
- i = 12% / 12 = 0.01
- M=?
Now, let’s put all the values in the formula: M = 2,000 × ({[1 + 0.01]¹²⁰ – 1} / 0.01) × (1 + 0.01). To solve this, we will get:
- Total Investment = ₹2,40,000
- Wealth Gained = ₹2,08,072
- Maturity Amount (M) or Total Wealth: ₹4,48,072
Advantages of Using Our Mutual Funds SIP Calculator
Here are the advantages which shows why our Mutual Fund SIP Calculator is a great tool for an investor:
- Fast & Reliable Results: Receive precise and timely investment Results in a few seconds. You don’t have to wait at all.
- Free & Accessible: You can use our calculator free of cost. No hidden charges are implied on you.
- User-Friendly Sliders: You don’t have to enter everything manually. Simply adjust the sliders to enter your monthly contribution, estimated return, and time period.
- Endless Calculations: You can do as many calculations as you want there is no limit or restrictions at all.
- No Subscriptions or Sign-Ups: We don’t want you to subscribe or register to check your search results. It’s simple and quick.
- User-Friendly Interface: If you are a first-time investor or experienced, you will not have any hard time using our site. It’s simple to navigate and easy to use.