Features of a SIP calculator

Title Tag: Know what are the features of a SIP calculator and how to use a SIP calculator

Meta Description: Learn everything about mutual SIP calculator, how to calculate estimated returns on your investments using a SIP calculator, and what are the key features of a SIP calculator

The SIP calculator is a tool that helps you to gauge estimated returns on your investment. It helps you to find out the monthly investment you need to make to fulfill your investment goals. Also, it helps you to plan your finances. However, you should be aware that the actual returns on your investments may vary from the estimated returns. In this article, we are going to learn about mutual SIP calculators, how to calculate estimated returns on your investments using SIP calculators and what are the key features of a SIP calculator.

What is a SIP calculator and how to use it?

The SIP calculator is used by mutual funds investors who want to invest pocket-friendly amounts every month. The SIP calculator calculates the returns based on the compound interest formula. Before using a SIP calculator, analyze how much amount you are willing to invest every month, the expected rate of return per annum, and the number of years you want to invest for.

To find out the estimated return, you have to input the monthly investing amount, the tenure of your investment, and the expected rate of return per annum. After a few seconds, it will display the total returns on your investment, the total invested amount during the tenure, and the interest amount you will receive. You can tweak the inputs according to your requirements. Let us understand with an example, let's assume you want to invest Rs. 5000 per month for a period of 30 years at a 12% rate of return per annum. Input all this information into a SIP calculator, and after a few seconds, the results are displayed. The total investment you have done during the tenure is  Rs. 18 lakhs and the total gains are Rs. 1.58 Crs and the maturity value is Rs. 1.76 Crs.

Features of a SIP calculator

Quick results: The SIP calculator is easy to use and calculates the returns on your investment within a few seconds. It simplifies complex calculations and you don't have to deal with complex mathematical formulas to find the expected return. Hence, it can be used by any novice investor.

Free of cost: SIP calculator is easily available on the internet and one can use it without paying a single rupee.

User-friendly interface: The user interface of the SIP calculators are user friendly. All you have to do is provide the required data or inputs to get the results.

Future value: The calculator gives you the estimated future value of your investments. Moreover, it gives you an overview of how your money will grow during your tenure.

Conclusion

Mutual fund investment through SIP is a great way to achieve your long-term goals. However, you need to keep in mind that no mutual fund guarantees returns. So before investing in any mutual fund be aware of the risk associated with it.