SIP Calculator

SIP Calculator Online - Check Systematic Investment Plan Returns

SIP Calculator Or SIP Return Calculator gives information about the expected returns from the amount you invest in a given period of time. For example, if you invest ₹30,000 and the expected return rate is 12% for 10 yrs. Then your expected return will be ₹33,70,172 and total amount received will be ₹69,70,172.

What is an SIP Calculator?

It is a calculator used for estimating the expected returns on a certain investment. The investment can be monthly or yearly. For monthly investments, monthly SIP Calculator and for yearly, yearly SIP Calculator can be used.

Key components typically considered by a SIP calculator include:

Amount Invested: The predetermined amount invested at periodic intervals. The investment interval can be monthly or quarterly.

Investment Period: Total tenure of SIP is in years or months.

Expected Rate of Return: Presumed annualized rate of return of an investment.

The SIP calculator then uses these inputs to calculate and display:

• Total investment amount : The periodic contributions made over a period of time.

• Estimated returns : The interest or profit made on investment based on compounding frequency and expected rate of return.

• Maturity amount : The sum of investment amount and the estimated returns.

• Breakup of principals and returns : Calculators provide a detailed proportion of the maturity amount.

Benefits of using SIP calculator

• Easy financial planning : It simplifies your task by providing an estimate of how much you need to invest to reach your financial goals.

• Time-saving : It eliminates the need for manual calculations, making it quick and convenient.

• Goal alignment : Aligning your financial goals like education, retirement with your investments

• Motivation to save : Seeing the potential for estimated returns may help in investing habits and disciplined investing.

• Informed- Decision making : The data helps in choosing the right SIP amount, tenure and funds.

How does a SIP Calculator function?

Systematic investment plan calculator has the following functions:

1. Inputs

The SIP calculator needs some key inputs in the form of:

• Monthly SIP amount

• Tenure in terms of months or years

• Expected rate of return on an annual basis

2. Formula

The formula used in SIP calculators to calculate maturity amount is:

M = P × ({[1 + i]^n – 1} / i) × (1 + i)

Where

M : Maturity amount

P : Amount invested every month

i : Rate of return

n : Total number of installments (months)

3. Compounding

This calculator uses the law of compounding return, meaning the returns gained are invested to create more returns, showing an exponential growth process.

4. Output Display

According to the inputs and formula, this is what the calculator will show:

• Amount invested

• Projected return

• Maturity Amount

How do you use Zactor Tech's SIP Calculator?

• Visit the page for the SIP Calculator on Zactor Tech.

• Input monthly investment amount you would invest regularly, such as every month.

• Enter the expected rate of return you expect from your investments.

• Mention Investment Period: State the number of years you wish to carry out the SIP.

Benefits of the use of the SIP Calculator at Zactor Tech:

SIP Investment calculator gives the following benefits at Zactor Tech:

• Ease of Calculation : Quickly estimate the future value of your investments without manual computations.

• Visual Representation : The calculator provides diagrams comparing your total investments with the expected future value, enhancing understanding.

• Immediate Results : Obtain instant projections, allowing for prompt decision-making.

• Improved Accuracy : Automated calculations reduce the risk of errors associated with manual methods.

Using this tool can help in effective financial planning by giving clear insights into the potential growth of your SIP investments. You can use our SIP Calculator online.