Online Share Trading

SIP calculator

You want to know how to calculate the return on your investments. Many online financial tools are available to assist you in calculating earnings. One of these tools is the SIP calculator. It is important to first understand what SIP means before we get into the workings of the calculator.

SIP, or systematic investment plan, allows you to invest regularly in mutual fund schemes rather than using the lump sum route. This helps you to be more disciplined with your investments. The SIP route allows you to invest monthly, quarterly, or half-yearly.

SIPs offer the advantage of starting with a low investment, such as Rs 500. This makes it affordable for salaried workers and allows them to increase their investments as needed. You can always increase your investment.

What are some of the benefits of a SIP.

Rupee-cost averaging:

Apart from the above benefits of disciplined investments, SIPs allow you to make use of rupee cost averaging.

You can average the cost of investing a certain amount each month. This is because the market drops, which means you get more units, while the market rises, which means you get fewer units. This is known as rupee cost average. SIP allows you to invest in mutual funds and experience both the highs & lows of the market. This results in your investment being averaged over a long investment period.

Compounding power:

When the interest you earn on your investment is also received in the following year, it's called compounding. Compounded investing is more effective over a longer period of time. This requires disciplined, sustained investment, even if the amount is small.

What's a SIP investment calculator?

  • An investment calculator, also known as a SIP return calculator, can help you calculate your returns on mutual fund investments that you have made using the systematic investment plan route. This online tool is free and algorithmic.
  • This tool will give you an estimate of the amount you should invest to achieve a certain return. You can then plan your investment so that you reach your goals within a certain timeframe.
  • It will also help you select a mutual fund plan that aligns with your goals.
  • If you already have a certain amount of money and want to increase it or decrease it later, a SIP calculator is a great tool to help you determine the potential new earnings that you will be able to make from the change.

What is a SIP return calculator?

To get an estimate of your earnings, you will need to enter fields like the monthly investment, expected return rate and number of years. The compounding formula for a SIP return calculator is FV = ((1+i - 1-1)/i) x (1+ I) where FV stands for future value, P represents the amount of money invested at the start of each payment period, and n is the number to be paid. i is the compounded interest rate.

It will compound as i/12 if you take into consideration the monthly SIP. If you want to invest 10,000 per month at 10% for 24 months, the monthly rate of return will be 10.1%/12, which is 0.008. The formula will give you a future value of 10000 x ((1+1/120 - 1)/1/120- 1 + 1/120). The tenure's end value will be Rs 13.2 lakh.

No need for formulae, just use the SIP calculator

It is too complicated and takes too much time to use. It would be necessary to keep it handy or refer to it whenever you do calculations. This amount of number crunching can be exhausting and a waste of time. Instead, you can use an SIP investment calculator to quickly calculate your future earnings.

It's fast and easy to use. You can input numbers and delete/alter any number. The SIP calculator can also be used as many times as needed. You might consider rearranging your investment if you have a goal to purchase a home or send your child overseas for higher education and future earnings are lower.

Calculators and financial planning

As you move through life, it is important to plan your finances. A financial plan considers many factors, such as income, cash flow and family commitments. It also includes goals, current standards of living, investment options, and your risk tolerance. Comprehensive financial planning helps you to assess your risk tolerance, and help you choose the best investment option. As long as you are disciplined in your investments and keep on track, the SIP route to mutual fund funds will ensure that your financial plan remains intact. An SIP calculator can be a valuable financial tool that you can use to chart your investment and financial plans.

In conclusion

An online financial tool that calculates your future earnings using a SIP return calculator has an intuitive interface. The online tool will provide you with the answer by simply entering your monthly investment amount, tenure in years, and rate of returns. The SIP investment calculator makes it easy to modify and compute your investment amounts without having to use complicated formulas. A quick and easy online tool is great for busy people who need to calculate their investment options.

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