SIP Calculator

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SIP CALCULATOR
Powered by www.sipcalculators.com
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Contents

• Introduction
• What is SIP?
• SIP Calculator
• How to Calculate SIP?
• For Monthly
• For Yearly
• For Daily

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INTRODUCTION

• By Investing money in Mutual Funds is a very good
  idea because it will help to secure future.
• But while investing money you have to follow some
  particular plan which is convenient to you. 
• So, the better way to follow while investing
  money is the Systematic Investment Plan.
• Here we have explained the calculation of SIP by
  taking an example.

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Systematic Investment Plan (SIP)

• A SIP is a smart and free of inconvenience for
  investing money in mutual Funds. 
• This allows you to invest a pre- determined money
  at regular interval i.e. quarterly, monthly,
  weekly.
• The SIP is very convenient and easy investment
  plan.
• Also, Systematic Investment Plan is a planned
  approach towards the investments and helps to
  make a habit of saving money for the future.
• There is no need to go bank to deposit amount.
  The money which is there in your account is
  automatically transferred to the particular
  Mutual Fund Scheme. 

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SIP CALCULATOR

• By the Systematic Investment Plan Calculator, you
  can easily calculate the return value of the
  investment that you have made for a particular
  period.
•  So, here we have explained with an example.
• Here we have given two examples i.e. one example
  for calculating the  SIP frequency for monthly
  and another example for calculating the SIP
  Frequency for yearly.

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How to Calculate SIP?

• You can calculate your Maturity amount by using
  formula which is explained in example.
• Here we have calculated the total or maturity
  amount by keeping SIP Frequency as
• Monthly
• Yearly
• Daily

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• Example for Calculating Mutual Amount for Monthly
  as SIP Frequency
• If you have take SIP Amount of Rs 10,000/-, No.
  of SIP Payments is for 12 months, and you can
  take expected annual rate as you wish as per the
  rules. But here we have taken as 10 as expected
  annual rate. Then finally by calculating the
  return amount after 12 months is
• The below formula can calculate the annual return
  value
• FV P (( 1i)n-1)/i)
  (1i)
• where, FV Future value/ Maturity amount
• P SIP Amount
• nNumber of SIP Payments
• i periodic interest rate per sip payment period
• r Expected return rate in per year

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• The returns are compounded every investment i.e.
  monthly SIP 's are compounded monthly, the
  periodic interest rate i is
• i r/12 (SIP for
  monthly)
• i r (SIP for yearly)
• i r/365 (SIP for
  daily)
• The SIP return calculation is as follows
• here p 10,000/-
• n12 months, r 10
• i (10/100)/12
• (1/10)/12 1/120
• Then
• FV 10,000 ((11/120)12 -1) / 1/120)
  (11/120)
• Therefore the total investment 120000  amount
  at the end of the tenure 126702.81

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• Example for Calculating Mutual Amount for yearly
  as SIP Frequency
• If you have take SIP Amount of Rs.1000/-, No.of
  SIP Payments is for one year, and you can take
  expected annual rate as you wish as per the
  rules. But here we have taken as 10 as expected
  annual rate. Then finally by calculating the
  return amount after one year is
• The annual return value can be calculated by the
  formula
• FV P (( 1i)n-1)/i)
  (1i)
• here P 1000/- ,
• n1 year,
• i r for yearly as given above
• So, i 10 10/100 1/10 Then

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• The SIP return calculation is as follows
• FV 1000 ((11/10)1 - 1) / 1/10)
  (1 1/10)
• Therefore, the total investment 1000  amount
  at the end of the tenure 1100
• Also, here we have provided SIP Annual amount by
  investing money for daily. So, for calculation,
  we have taken an example for calculating the
  maturity amount.

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• Example for Calculating Mutual Amount for daily
  as SIP Frequency
•  If you have take SIP Amount of Rs. 1000/-, No.
  of SIP Payments is for 365 days, and you can take
  expected annual rate as you wish as per the
  rules. But here we have taken as 10 as expected
  annual rate. Then finally by calculating the
  return amount after 365 days is
• The formula can calculate the annual return value
• FV P (( 1i)n-1)/i)
  (1i)
• here P 1000/- ,
• n365 days,
• i r/365 for daily as given above
• So, i 10
• 10/100
• 1/10/365
• Then i 1/3650

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• The SIP return calculation is as follows
• FV 1000((11/3650)365 -1)/
  1/3650) (11/3650)
• Therefore, the total investment 365000   amount
  at the end of the tenure 383923.76

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• Thank You
• For more Details www.sipcalculators.com