SIP Calculator: How to Calculate Your SIP Return?

Benefits of Mutual Fund SIP Calculator

Investing in mutual funds through a Systematic Investment Plan (SIP) can be complex, especially since mutual funds are market-linked and do not offer assured returns. Hence, knowing how much you should invest in mutual funds can take time and effort. This is where the mutual fund SIP calculator comes to the scene.

The following are the benefits of SIP calculator in Dubai, UAE-

• Ease of Use - The SIP return calculator is user-friendly and provides a straightforward estimate value of your investments. It helps you consider different situations by changing the variables like expected rate of return, tenure, SIP amount, and more. 
• Deciding the SIP Amount - With the SIP future value calculator, you can decide on the specific amount you need to invest in mutual funds systematically to earn the returns you want. 
• Free of cost - The calculator is free of cost and can be used any number of times. This makes it a convenient tool for ongoing investment planning.
• Helps in Finding the Top Investment Opportunities - When you use the SIP investment calculator, you not only get the estimated returns but also recommendations of funds that are in tune with your financial goals. 
• Enables Combating Inflation - An SIP investment calculator considers inflation when estimating the returns, giving you a more realistic view of how your investments might grow in real terms. 
• Works on the Power of Compounding - The SIP mutual fund calculator will help you calculate returns based on the power of compounding.  It implies that the returns earned are reinvested and you can generate additional returns. This cycle goes on throughout the policy tenure.  

Additional Values of an SIP Calculator

The following are the additional values that the SIP mutual fund calculator -

• Retirement Planning - It determines the funds required to ensure that you have a comfortable retirement. By inputting your target retirement amount, current savings, and investment duration, you can determine how much to invest regularly to achieve your retirement goals.
• Women-Centric Financial Planning - With the help of an SIP calculator, women can create personalised strategies to invest and achieve their financial goals whether planning for career breaks, personal goals or long term financial independence. 
• Children’s Future Planning -  The SIP mutual fund calculator aids in planning for your child’s future expenses, such as education or marriage. By considering expected future costs and inflation, you can estimate the required investment amount and the periodic contributions needed to reach your savings goals.

How Does the SIP Investment Calculator Work?

Here’s how an SIP investment calculator works -

• Choose your target or investment amount.
• Enter your investment or SIP amount.
• Select the SIP duration.
• Enter the expected rate of return.

After entering all the values, click ‘Calculate’. The calculator will instantly show the estimated maturity value or the required investment amount to reach your goal.

SIP Calculator Formula

If you’re curious about the formula and want to understand how this calculator works, here is a quick insight into it —

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

Where:

F = Future amount you receive upon maturity 

P =  The amount you invest on a periodic basis

n= number of payments you have made 

i= rate of interest 

Please note that the rate of interest on a SIP will differ depending on the market conditions. 

How Does an SIP Return Calculator Help You?

An online SIP calculator is a useful tool that estimates the returns you'll earn over your investment period.

Some benefits of SIP calculators are:

• Helps you decide how much to invest.
• Shows the total amount you've invested.
• Provides an estimated value of your returns.

Frequently Asked Questions