SIP & Lumpsum Calculator
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NOTE: - Calculated SIP & Lumpsum Result is indicative only.
SIP Calculator – Plan Your Systematic Investments Smartly
Many investors often confuse SIPs with mutual funds, but SIP (Systematic Investment Plan) is just a method of investing in mutual funds—an alternative to lump sum investment. A SIP calculator is a helpful tool that estimates the potential returns on your SIP investments. SIPs allow you to invest a fixed amount in mutual funds at regular intervals—weekly, monthly, or quarterly.
What is a SIP Calculator?
A SIP calculator is a simple online tool designed to help investors estimate their returns on mutual fund investments made through SIPs. As SIPs have gained popularity, especially among millennials, these calculators provide a rough estimate of the maturity amount based on projected annual returns. However, actual returns may vary due to market fluctuations, exit loads, and expense ratios, which the calculator does not account for.
How Can a SIP Return Calculator Help?
SIP investments are widely considered more beneficial than lump sum investments, as they encourage financial discipline and regular savings.
A SIP calculator online can:
Help determine the ideal investment amount.
Provide insights into the total invested sum.
Estimate potential returns over the investment period.
How Does a SIP Calculator Work?
A SIP calculator works on this formula:
M = P × ({[1 + i]^n – 1} / i) × (1 + i).
Where:
M = Maturity amount
P = SIP investment per installment
n = Number of installments
i = Periodic interest rate
For example, if you invest ₹1,000 monthly for 12 months at an expected annual return of 12%, the monthly rate of return would be:
12%/12=1%=0.01
This results in an approximate maturity value of ₹12,809 in a year. The actual returns may vary depending on market conditions.
How to Use Groww’s SIP Calculator?
Groww’s SIP calculator is easy to use:
- Input the number of years you plan to invest.
- Enter the expected rate of return.
- Enter the monthly investment amount.
The calculator will instantly display the estimated maturity amount at the end of the investment tenure.
Advantages of Using Groww’s SIP Calculator
Groww offers a reliable and efficient SIP calculator with the following benefits:
- Helps plan investments based on amount and tenure.
- Provides a quick estimate of the total value at maturity.
- Delivers accurate results, saving time on manual calculations.
A SIP calculator simplifies investment planning and ensures your savings align with your financial goals.
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