Calculate returns on systematic investments.
This calculator is useful for calculating returns from a mutual fund using the systematic investment plan (SIP) route. Simply enter the SIP amount, select daily/ monthly/ yearly SIP cycle to calculate the amount accumulated over the investment tenure. This calculator can also be used for finding the future value of a fixed amount saved at regular intervals.
Systematic Investment Plan (SIP) is an investment strategy where you invest a fixed amount every month in investment instruments like mutual funds. Investing in mutual fund using SIPs is similar to savings in banks using recurring deposit; The bank returns are, however, guaranteed whereas mutual fund returns are not.
The formula for SIP return calculation is based on the formula for future value of annuity-due.
FV = P × ((1 + i)n - 1) / i) × (1 + i)
FV = Future value
P = Amount invested at the start of every payment interval
n = Number of payments
i = Periodic interest rate
r = Expected return rate in % per annum
For a monthly SIP payment P for a period of n months:
Maturity amount = P × ((1 + i)n - 1) / i) × (1 + i)
i = r / 100 / 12
Disclaimer:- The content of this website does not constitute financial advice and is solely meant for information purpose. The calculations are accurate as per the prescribed formula.