A SIP calculator helps you figure out how your money could grow if you regularly invest a certain amount at regular intervals of time. You tell the calculator how much you'll invest each month, how long you'll keep investing, and the expectations of the rate of returns of the asset class you invested in. It will help you to decide the amount and tenure of SIP to reach your desired goal. Also, the calculator doesn't consider any extra costs or fees such as expense ratio or exit load, that might affect your savings. Please keep in mind that it's a basic tool to give you a rough estimate, and not an exact prediction of how much money you'll have in the end.
How does the SIP calculator work?
As mentioned above, there are three inputs that you have to incorporate to calculate the estimated amount at maturity and give you a visual representation as well.
To calculate the future value of the investment, simply input your monthly investment amount (the sum you’ve committed to your SIP), the duration you plan to stay invested, and your anticipated rate of return.
Once you’ve entered these values, the calculator will promptly display the projected sum expect to have at the end of your investment period.
Benefits of the SIP Calculator
- Using the SIP calculator is a piece of cake. You can find out how much you might make by just plugging in some numbers.
- It's easy to find online, and you won't have to pay anything to use it.
- The calculator gives you results that are customized just for you, based on your specific situation.
