SIP Calculator - Systematic Investment Plan Calculator
Adopting a Systematic Investment Plan, also known as an SIP, is one of the best ways to invest in the stock market. In an SIP, you make consistent monthly investments in an asset class of your choice over a period, thereby inculcating financial discipline. That’s not all. Thanks to rupee cost averaging, an SIP protects you from market downsides to a certain extent, and helps you create wealth over the long term.
But then, is it possible to determine the returns your SIP investments are likely to generate? If that’s what you’re wondering, you can use an SIP return calculator to get an estimate of your investment returns.
What is an SIP calculator?
A Systematic Investment Plan calculator is a free online tool that is designed to determine the amount of returns that your SIP investment is likely to generate in the future. By giving you a fair idea of the returns, this online tool helps you plan your investments in advance. With the SIP investment calculator, you can also find out just how much you would have to invest each month to reach your financial goals.
How does an SIP calculator work?
An SIP return calculator requires you to input certain details of your investment such as -
-
1
The amount of monthly investment
that you wish to make
-
2
The tenure of the SIP
The expected annual rate of return
-
3
The expected annual rate
of return
The tool then uses a simple mathematical formula to determine the amount of returns that you can expect at the end of the specified tenure.
Invest
₹25,000
for 5 Years
=
Returns
₹20,62,159
12% Returns
Let us understand this with an example. Say, you start a SIP of ₹25,000 in a mutual fund generating a compounded annual growth rate (CAGR) of 12% for a period of 5 years. In this case, the future value of your SIP will be ₹20,62,159. Calculate the future value of your SIP using m.Stock’s SIP Calculator now.
That said, here’s something that you need to note. The rate of return in an SIP is completely dependent on the movement of the market. And since the market movement cannot be predicted, the rate of return can vary on either side, which can lead to a difference in the expected return and the actual return that you receive at the end of the tenure.
Benefits of using the m.Stock SIP online calculator
The Systematic Investment Plan calculator from m.Stock offers a host of different benefits to its user. Let’s check out a few of the most important ones