SIP Calculator

What is SIP Calculator?

SIP or systematic investment plan calculator is a tool that helps its user to evaluate the final return on the investment that you have made on a particular SIP plan.

A SIP is a financial market mechanism that allows any person to invest their money in selected mutual fund at a regular interval of time. A SIP investment allows its investors to invest money on their selected mutual funds typically in equity mutual fund schemes. Using an online SIP calculator helps its users to determine the wealth gain and expected returns on their SIP investments.

Why use a SIP Calculator?

SIP calculator is a tool to understanding the future value of someone’s investments through regular intervals, but calculating it manually requires special ability in mathematics and also needs time. Thus using an online SIP calculator is always recommended. It can effectively calculate all the complex calculations and showcase the estimated amount that a user will get through his selected SIP investment plan.

Advantages of using SIP Calculator :

There are numbers of reason why one should use SIP calculator, here are some,

• It works in a simple value put method, so a normal person can able to use it without any issues.
• User can able to differentiate between the multiple SIP plans based on their estimated return.
• Human error isn’t an issue.
• With the help of this calculator, investor can plan their investment amount based on the estimated return and tenure.
• Result is displayed in no time.
• User can skip the burden of calculation manually.

Formula of calculating SIP (Systematic Investment Plan)

Though it is always advisable to use an online SIP CALCULATOR for evaluate the future outcome, but for curious minds, the formula of SIP CALCULATION is given below,

M=P x [{(1+i)n -1}/ i ] x (1+i)

here, M= maturity amount, P= the money that is investing at regular intervals, i= interest rate, n= number of payment that made.