SIP calculator- Systematic Investment Plan Calculator

 

SIPs and Lump Sum are the two ways to invest in SIP. A SIP calculator is a tool that helps you in calculating the returns you can expect when investing in such investing apps. SIP stands for a systematic investment plan, and it is the process of putting a set amount of money in mutual funds on a regular basis. One can start SIP on a weekly, quarterly, and yearly basis.

 

What is a SIP calculator?

 

A SIP calculator is a tool that allows people to calculate and estimate returns on their SIP-based mutual fund investments. SIP has recently become one of the most popular investment solutions for Generation Y (Gen-Y) also known as Millennials

 

These mutual fund sip calculators are intended to provide new investors with a raw estimate of their mutual fund investment. The actual returns offered by a mutual fund plan, on the other hand, vary based on a number of factors. The exit load and expense ratio are not explained in detail in the SIPs calculator (if any).

 

This calculator will calculate your monthly SIP investment’s wealth gain and predicted returns. Indeed, based on a predicted yearly return date, you may generate a reasonable estimate of the maturity amount for any of your monthly SIPs.

 

What is the benefit of using a SIP returns calculator?

 

According to numerous mutual fund experts, Sips are a more profitable form of investing funds than a lump sum amount. It assists you in developing financial discipline and establishing a savings habit that will benefit you in the near future.

 

An online SIP calculator gives you the expected returns you will receive after an investment period.

 

Here are a few of the advantages of SIP calculator:

 

Assists you in determining how much money you plan to invest.

Tell you how much money you’ve put in so far.

Specifies the value of the returns.

 

 What is the procedure for using the SIP calculator?

 

This formula is used in the SIP plan calculator.

 

M= P  ({[1+ i]n – 1} / i)  (1 + i).

 

In the above formula-

 

M – stands for the amount you receive upon maturity.

P – is the amount you invest at regular intervals.

N – stands for the number of payments you have made.

I – is the periodic rate of interest.

 

 Assume you want to invest Rs. 2,000 per month for a period of 12 months at a 12 percent annual rate.

 

The monthly rate of return will thus be 12% (12 = 1/100=0.01)

 

As a result, M= 2,000 (2 + 0.01)  ([2+0.01]12 – 2 / 0.01)

 

In a year, this amounts to around Rs 25,619/-

 

The interest rate on a SIP will fluctuate depending on market conditions. It may rise or fall, causing the expected returns to vary. You can also calculate your child’s education expenses and do start investing using an education calculator.

 

How to use Imperial money’s systematic investment plan calculator?

 

With a few clicks, you may use Imperial Money’s SIP amount calculator.

 

Simply enter the monthly investment amount (the amount for which the sip was established), the number of years you want to keep invested, and the estimated rate of return.

 

As soon as you enter the figure click calculate and the calculator will calculate the projected amount you will be able to withdraw once your investment period has ended.

 

The following are some of the benefits of using Imperial Money’s systematic investment plan calculator.

 

Imperial Money gives the best SIP calculator, which has the following benefits:

 

• Plan your investment according to the amount and time period you want to keep it.
• It allows you to calculate the total value of your investment at the end of your SIP investment period.
• It shows you the accurate findings and saves a lot of your time.

 

A sip calculator ensures that your savings portfolio is built according to your needs and plan.