Are you planning to invest in a Systematic Investment Plan (SIP)? Before you make any investment, you should calculate the return
This is where a SIP calculator comes in handy.
In this blog post, we will discuss what a Systematic Investment Plan calculator is, how it works, and the benefits of using one.
SIP Calculator – Systematic Investment Plan Calculator
A SIP calculator is a tool that helps you determine the potential returns on your Systematic Investment Plan investment.
It is a simple and easy-to-use tool that can give you an estimate of the future value of your investment.
What is a SIP Calculator?
A Systematic Investment Plan calculator is a free, user-friendly online tool that helps you calculate the returns on your SIP investments in mutual funds.
We know SIP is an easy process to invest in mutual fund
To calculate you just need to fill in some basic details like- monthly investment, rate of return, and tenure
it will provide you an expected rate of future return on investment
This makes it easier for you to plan your investments and make informed decisions.
Why Use a SIP Calculator?
- Informed Decision Making: An Systematic Investment Plan calculator enables you to compare different investment scenarios and make informed decisions about your investment strategy.
- Visual Representation: The calculator provides a graphical representation of your investment growth, making it easier to understand the impact of various factors on your returns.
- Time-saving: With a SIP calculator, you can quickly assess the potential returns on your SIP investments without having to perform complex calculations manually.
- Goal-based Planning: The calculator allows you to set financial goals and understand how much you need to invest regularly to achieve them.
- Risk Assessment: By using a SIP calculator, you can gauge the potential risks associated with your investment choices and make adjustments accordingly.
How to Use a SIP Calculator?
Using a Systematic Investment Plan calculator is simple and requires only a few basic inputs:
- Monthly Investment Amount: Enter the amount you wish to invest monthly in your SIP. This can be as low as INR 500.
- Investment Tenure: Input the number of years you plan to invest in the SIP.
- Expected Rate of Return: Provide an estimate of the annual rate of return you expect from your investment.
Once you have entered these details, the calculator will provide you with the following results:
- Estimated Maturity Amount: This is the total value of your investment at the end of the tenure, including the returns earned.
- Total Investment: The sum of all your monthly investments over the tenure.
- Total Returns: The difference between the maturity amount and the total investment, representing the profit you have earned.
How can a SIP return calculator help you?
A SIP return calculator can help you in the following ways:
1- Planning your investment: A SIP calculator can help you plan your investment by giving you an estimate of the potential returns on your investment.
2- Choosing the Right SIP: A SIP calculator can help you choose the right SIP by comparing the potential returns of different SIPs.
3- Monitoring your investment: A SIP calculator can help you monitor your investment by giving you an idea of how your investment is performing.
How do SIP calculators work?
SIP calculators work on a simple formula that takes into account the amount invested, the expected rate of return, and the investment duration. The formula calculates the future value of your investment, taking into account the compounding effect of the interest earned on your investment.
How to use Sharemarketbasics systematic investment plan calculator?
Using the Sharemarketbasics SIP calculator is easy. Follow these simple steps:
1- Enter the amount you want to invest in the SIP.
2- Enter the expected rate of return.
3- Enter the investment duration.
4- Click on the ‘Calculate’ button.
5- The SIP calculator will give you an estimate of the potential returns on your investment.
Advantages of using Sharemarketbasics systematic investment plan calculator
Using the Sharemarketbasics SIP calculator has the following advantages:
Accuracy: The Sharemarketbasics SIP calculator gives you an accurate estimate of the potential returns on your investment.
Ease of use: The Sharemarketbasics SIP calculator is easy to use and does not require any prior knowledge of financial calculations.
Saves time: The Sharemarketbasics SIP calculator saves you time by quickly calculating the potential returns on your investment.
