SIP Calculator

How Does SIP Calculator Work?

A SIP calculator helps you estimate the potential returns on your monthly mutual fund investments. It works using a specific formula:

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

Here,

M is the maturity amount,

P is your monthly contribution,

n is the number of payments, and

i is the periodic interest rate.

Let’s say you invest Rs. 2,000 per month for 12 months at a periodic interest rate of 12%. 

The monthly rate would be 12% / 12 = 0.01

Therefore, M = 2000 × ({[1 +0.01 ]^{60} – 1} / 0.01) x (1 + 0.01)

This gives approximately Rs. 25,619 in a year.

This tool accounts for the power of compounding and rupee cost averaging, providing a rough estimate of how your investments could grow over time. It's a quick and easy way for investors to plan and track their financial goals more effectively.

How can a SIP return calculator help you?

Compared to lump sum investment strategies, SIPs are considered to be a more lucrative way to invest funds. They help you develop better financial discipline, allowing you to create a habit of saving which can benefit you in the future. Online SIP calculators are beneficial tools in this journey, showing you your potential estimated returns following your investment tenure. Some other benefits include:
 

• They assist you in determining the amount you want to invest in
• They tell you the total amount you have invested
• They provide an estimated value for your returns

How to Use Tata Moneyfy's Systematic Investment Plan Calculator

Tata Capital Moneyfy's SIP calculator is a simple, free online tool designed to estimate the potential growth of your investments over time. To use the calculator, follow these steps:

Step 1 - Enter the monthly investment amount.

Step 2 - Input the expected annual interest rate.

Step 3 - Specify the investment period in months or years.

After entering this information, the calculator will instantly provide-

• Total investment
• Estimated returns
• Future value of your investment

For instance, if you enter an SIP amount of Rs.5,000, a duration of 2 years, and an interest rate of 12%, the calculator will show-

• Total investment: Rs.1,20,000
• Estimated returns: Rs.16,216
• Future value after 2 years: Rs.1,36,216

If the projected amount doesn’t meet your expectations, you can adjust the investment period or explore other SIP options for higher returns.

By using Tata Capital Moneyfy's SIP calculator, you can plan your investments effectively and ensure you meet your financial goals effortlessly.

Advantages of Using Tata Moneyfy SIP Calculator

Below are some of the benefits of using Tata Capital Moneyfy's SIP calculator online-

Helps in Investment Planning – The calculator provides an estimate of potential returns based on the investment amount, tenure, and expected rate of return, making it easier to plan investments.

Saves Time and Effort – It performs complex calculations instantly, eliminating the need for manual computations and simplifying the process.

Allows Customisation – You can modify investment amounts, durations, and expected returns to compare different scenarios and make informed decisions.

Easily Accessible and Free – The SIP calculator is available online at no cost and can be used as many times as needed.

Aids in Better Financial Planning – It offers clarity on how small, regular investments can grow over time, helping in planning long-term financial goals more effectively.