Many of your clients may think that the SIPs and mutual funds are the same but it is not. In reality, the SIP is a procedure for investing in mutual fund schemes. In SIP investment users can invest fixed certain amounts in specific schemes at fixed intervals (Month, week, quarter, etc.) for a specific amount of time (6,7, 10 years). This SIP calculator is nothing but a kind of tool which helps to determine the returns you may avail when parking your funds in such investment tools. SIP is the process of investing the fixed amount of money that is existing in mutual funds at regular intervals.

**What is the SIP Calculator? **

The SIP calculator is a very easy tool that allows anyone to get an idea of the returns on their mutual fund that you have investments through SIP. SIP investments mutual funds in the present time it has become one of the famous investment options for millennials lately.

SIP calculators are mainly designed for providing potential investors an approx. on their mutual fund investments. Though, the actual returns that you get through mutual fund schemes that are vary depending on the different factors. This SIP calculator doesn’t clarify the exit load and the expense ratio.

SIP calculator will calculate the wealth gain and approx. expected returns for your monthly SIP investment. With it, you will get a rough estimate of the maturity amount for any of your monthly SIP that is based on the projected annual return rate.

**How SIP calculator can help you?**

SIP is an increasingly worthwhile method of investing funds in contrast with a lump sum amount according to various mutual fund experts. It will assist you to be financially and create a habit of savings that can advantage you in the future. The SIP calculator online is a very useful tool that will show the approx. return that will be earned after the investment tenure.

Below some of the benefits of SIP calculators are given:

- It helps you to estimate the amount that you want to invest in.
- It will indicate the total amount you have invested in.
- This will give you the estimated value of the returns.

**How do SIP Calculators work? **

A SIP calculator works on the following formulas:

M= P × ({[1 + i]n – 1} / i) × (1 + i)

Description of the above formula:

- M is an amount that you will receive on maturity.
- P is the amount that you invest at regular intervals.
- N is the number of payments that you have made.
- (i) is the periodic rate of interest.

For example, you wanted to invest Rs. 1000 per month for 12 months at the periodic rate of interest of 12%.

M = 1,000 X ({[1 + 12%]12 – 1} / 12%) x (1 + 12%)

M = Rs. 25,293 (approx.)

The SIP interest rate may be different as per the market conditions. The SIP interest can be increased or decreased and this will affect your amount.

**Calculator **

Above we have discussed SIP and its calculator. This calculator is very simple to use and this helps you to estimate the interest that you will get.

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