SIP Calculator - Systematic Investment Plan Calculator

What is a SIP Calculator?

A SIP calculator is a simple tool that allows prospective investors to get an idea of the returns on their mutual fund investments made through SIP. SIP investments in mutual funds have become one of the most popular investment options for the GenZ lately since it sits right in with the contemporary investment goals.

These mutual fund sip calculators are designed to help prospective investors a near accurate estimation on their mutual fund investments. However, the actual returns offered by a mutual fund scheme varies depending on various factors. The SIP calculator does not provide clarification for the exit load and expense ratio (if any - Exit Load is a fee charged when you partially exit the fund and Expense Ratio is a fee charged for managing the fund ).

These mutual fund sip calculators are designed to help prospective investors a near accurate estimation on their mutual fund investments. However, the actual returns offered by a mutual fund scheme varies depending on various factors. The SIP calculator does not provide clarification for the exit load and expense ratio (if any - Exit Load is a fee charged when you partially exit the fund and Expense Ratio is a fee charged for managing the fund ).

How can a SIP Calculator help you?

SIPs are a more attractive way to invest than the lump sum method according to many experts.

Because, a lot of prospective investors are confused as to what a lump sum is to their personalized budget.

According to most experts,

What qualifies as Lump Sum?

If you can invest 5000 Rs, every month,

Lump Sum = Rs. 60,000 to Rs.1.2 Lakhs

If you do not have 12 to 24 times the amount which you can afford every month, that does not qualify as a lump sum, since you should probably resort to a SIP or put that amount to some other use.

SIP inculcates financial discipline especially when you are a salaried professional.

Simply put,

A SIP Calculator displays the Estimated Returns you will earn after the investment duration.

Why are SIP Calculators a Lifesaver?

Just Slide to

1. Determine the Amount you should invest based on your investment capabilities.
2. Find how much Amount you have invested.
3. Calculate an estimated value of returns.

How do SIP Calculators Work?

A SIP Calculator works on this formula -

A = P × ({[1 + r]n – 1} / r) × (1 + r).

In the above formula –

• A - The amount you receive upon maturity.
• P - The amount you invest at regular intervals.
• n - The number of payments you have made.
• r - is the rate of interest per period.

Take for example you want to invest Rs. 1,000 per month for 12 months at a rate of interest of 12% per month.

then the monthly rate of return will be 12%/12 = 1/100=0.01

Hence, A = 1,000X ({[1 +0.01 ]^{12} – 1} / 0.01) x (1 + 0.01). This gives Rs 12,809 Rs approximately in a year.

The rate of interest on a SIP will differ as per market conditions. It may increase or fall. This will change the estimated returns.

How to use StockPe’s systematic investment plan calculator?

You can slide through StockPe’s SIP Calculator with sliders and a few clicks.

Just pick or enter the monthly invested amount (the amount for which you have started the SIP), the number of years for which you plan to stay invested, and the expected rate of return.

As soon as you input the value, the calculator will show you the estimated returns you can pocket after your investment tenure is complete.

Advantages of using StockPe’s SIP calculator

StockPe offers the finest SIP calculator, which provides the following advantages –

• Plan your investment based on your expected returns and duration.
• It helps you calculate an estimate of the total value of investments at the end of your SIP tenure.
• Shows accurate results and helps you save time and effort to calculate manually.

A SIP calculator ensures that your investment portfolio is as per your requirements and financial needs.