SIP Calculator

Are you considering taking the first steps into the world of investing? Systematic Investment Plans (SIPs) can offer a smart way to start. SIPs usually allow you to invest weekly, quarterly, or monthly. For SIP you will have to decide the investment amount, the SIP date and the scheme in which you want to invest. A SIP calculator is a tool that helps you determine the returns you can avail when parking your funds in such investment tools.

What is an SIP calculator?

A SIP calculator is a simple tool that allows individuals to get an idea of the returns on their mutual fund investments made through SIP. This calculator considers many factors such as your amount, rate of return, and the duration of your investment. SIPs involve investing a fixed amount of money at regular intervals (typically monthly) into a mutual fund scheme.

How does an SIP calculator work?

SIP Calculator or the SIP Investment Calculator uses some variables as inputs. It then processes these inputs to give you the total future value of investments and total earnings generated by your investment. Inputs to be given in SIP Calculator:

• Investment input: Start with the amount you plan to invest monthly. This is crucial as it determines the total investment over time.
• Rate of return: This is typically annualized and is converted into a monthly rate for accurate calculations.
• Investment duration: The total number of months you intend to invest is entered. This determine how long your money will be growing.
• Future value calculation: Using the inputs, the calculator computes the future value of your investment.

How does an SIP calculator work?

Are you considering taking the first steps into the world of investing? Systematic Investment Plans (SIPs) can offer a smart way to start. SIPs usually allow you to invest weekly, quarterly, or monthly. For SIP you will have to decide the investment amount, the SIP date and the scheme in which you want to invest. A SIP calculator is a tool that helps you determine the returns you can avail when parking your funds in such investment tools.