If you’re tired of assuming how much your investments are worth or if you still don’t understand the math behind compound interest, then a SIP calculator is for you. It will tell you exactly how long it will take to reach your goal based on a specified projected rate of return and average investment amount.
A SIP Return Calculator is an online web-based application that computes the return on your regular mutual fund investment based on a projected rate of return as well as the potential value of your ongoing investment after a specified number of years.
Because SIPs normally need a monthly contribution, the manual calculation might be time-consuming. Because the holding duration for every monthly contribution varies at any given moment, the return rates for these contributions will also vary.
This is exactly why you need a SIP Mutual Fund Calculator.
How to use the online SIP Calculator?
Here is a step-by-step breakdown of the two methods of using an online SIP Mutual Fund Calculator:
- Based on your investment
You can use the SIP return calculator by ET Money to get an estimated value of your investment, given that you know the amount you are investing every month.
- First, you need to input your monthly investment amount. This is the sum of money that is going to your mutual fund every month from your wallet.
- Next, you need to set an investment duration. This is the number of years during which you will continue investing in the mutual fund.
- Finally, you have to select your investment strategy. This calculates the expected average yearly return on your investment. You can pursue a balanced, aggressive, or conservative plan. Alternatively, you may use the “custom” parameter to define a specified rate of projected return.
After putting the following information into the SIP calculator, you can just select calculate to see the potential future value of the monthly contributions you have made as well as a short selection of recommended Mutual Funds that may be suitable to assist you in reaching your investment objective.
- Based on your goal
If you want to invest to reach a certain objective, such as getting a new house or paying your home loan, you will already realize how much cash you will require in a certain number of years. In this scenario, you may use the sip return calculator to calculate the monthly SIP required to meet your investment objective.
- Start by inputting your savings goal. This is the amount of money you are looking forward to achieving as your investment objective.
- Next, you have to set a period. This is the number of years you plan to reach your respective investment objective.
- Finally, you need to choose your investment strategy. You can compute an aggressive strategy based on large returns or a balanced or conservative approach based on lower returns, whichever is more appropriate. You may also select “custom” to provide a certain estimated rate of return.
After entering the relevant information, the SIP mutual fund calculator will calculate the monthly amount of SIP required to accomplish your investment objective during the selected investment duration.
You may also utilize the “Adjust Goal Amount for Inflation” function to calculate the increased SIP amount required to accomplish your investment objective after considering the effect of inflation.
Why should I use an online SIP calculator?
Mutual funds and other market-linked products may not promise guaranteed returns. As a result, investors may struggle to determine how much their cash will increase in the coming years or how much money they have to invest to achieve a given objective. The SIP Investment Calculator assists in overcoming these issues by calculating the potential future value of your mutual fund SIP investments in seconds.
The SIP calculator would help you to understand how to build your investments over time with a future value of money at the expected rate of return. So, if you wish to increase your investment corpus over time, you can simply tweak the figures and increase your SIP amount by 10% annually to get a more realistic investment over time.
Because of inflation, everything becomes more expensive over time, but don’t worry! All you have to do is press a button to obtain the inflation-adjusted statistics for your investing objectives. This can help you make educated investment decisions. Apart from this, the calculator also presents you with a selection of mutual funds that could be capable of assisting you in meeting your investing objectives.