A SIP calculator is a web-based financial tool that can assist you in calculating the returns on your SIP investments. The calculator will also tell you how much money you need to invest each month in order to reach your target corpus. Simply put, it is a road map for achieving your various financial goals.
The calculator can be extremely useful in performing complex financial calculations automatically without the use of a pen and paper. Only a few parameters are required, and the calculator will return the result in a matter of seconds.
Benefits of SIP Calculators
The SIP calculator is suitable for those who have a good financial background. The reason for this is that most people can create their SIP calculator in Excel, though it makes much more sense to use the free resources available online.
- Assists in estimating future returns
The results of the sip investment calculator are nearly accurate because the SIP calculator levels the playing field for both new and experienced investors. This, in turn, can help the investor reap the benefits of mutual fund investments by estimating their future returns. You only need to enter basic information such as your SIP amount and period, for example. Following your selection, the SIP calculator will calculate your final amount automatically in a matter of seconds.
- Interface that is simple to use
All SIP calculators have an easy-to-use interface that requires only a few details to generate results. It is also one of the primary promoters of mutual funds, which are used by a variety of fund houses and brokers.
- Averaging the Costs in Rupees
With a SIP, you can benefit from rupee cost averaging. Because the money is invested monthly, you can buy more units when the price is low and fewer units when the price is high. In comparison to a lump sum investment, the average cost is lower overall.
- Beginning Early
As previously stated, the earlier you begin, the better. You have the advantage of investing early with as little as Rs.500. A smaller amount is easier to start with and is also more cost-effective.
- Simple and quick
The SIP calculator allows an investor to make investment plans more quickly. Otherwise, if done by hand, the formula may appear complex, and the possibility of error increases. After entering all of your information into the sip return calculator, you may receive the result in the blink of an eye. You don’t have to take time away from your regular work to check on your investments if you have a simple dashboard. Monitoring investments becomes simple, quick, and straightforward.
SIP returns are calculated using compound interest. Be a part of 5paisa and all you have to do here is enter the amount in the calculator you want to invest each month and the number of years you want to invest for, and the sip return calculator will calculate the amount of return for you. Furthermore, it displays a comparison of your SIP returns versus other investment options such as Fixed Deposits.