SIP Calculator: A Step-by-Step Guide to using this tool 

Investors can use a SIP calculator to estimate the possible returns on their SIP investments. A SIP (Systematic Investment Plan) is a type of investment where individuals put a certain amount of money into a mutual fund scheme on a regular basis (weekly, monthly, quarterly, or annually). The SIP calculator is an online tool that determines the prospective returns on the investment by taking into account the investment amount, length, estimated rate of return, and frequency. In this tutorial, we’ll walk you through each step of using the SIP calculator.

Step 1: Enter the amount to invest.

Entering your intended mutual fund investment amount is the first step in utilizing the SIP calculator. This number is the money that you commit to investing each month or according to the frequency that you have selected. For instance, you would enter Rs. 10,000 into the SIP calculator if you intended to invest Rs. 10,000 per month in a mutual fund program. Check more on the Stock Market.

Step 2: Enter the length of the investment.

The investment duration input comes next. You want to invest in the mutual fund scheme during this time frame. The investment time frame may be expressed in months or years. Since there are 60 months in a year, you would enter “60” in the SIP calculator if you intended to invest for five years.

Step 3: Enter the anticipated return rate.

The estimated rate of return is entered in the third step. This represents the rate of return you anticipate receiving on your investment. The type of mutual fund scheme, the state of the markets, and other variables can affect the predicted rate of return. Input ’12’ into the SIP calculator, for instance, if you anticipate earning 12% annually on your investment. Check more on the Stock Market.

Step 4: Determine the frequency of investments

The choice of investment frequency is made in the fourth phase. This is how often you intend to invest in the mutual fund program. The frequency of the investment can be weekly, monthly, quarterly, or yearly. For instance, you would choose “Monthly” on the SIP calculator if you intended to make investments each month.

Step 5: Calculate the potential returns

The SIP calculator will calculate the possible returns on your investment once all the required data has been entered. The calculator will display your total investment amount, estimated return percentage, and investment value in the future. The amount you will earn at the conclusion of the investment period represents the future value of your investment. Check more on the Stock Market.

Analyze the prospective returns in step six.

Analyzing prospective returns on your investment is the last phase. You may find out how much you will earn at the conclusion of the investing period with the SIP calculator. You can assess several investment possibilities using this information, change the amount and timing of your contribution, and select an investment strategy. that suits your financial goals and risk appetite.

Conclusion

The SIP calculator is a practical tool that enables investors to estimate the prospective profits on their SIP investments, in light of the foregoing.  Check more on the Stock Market.