For investors, one simple and affordable way to invest in equity markets is through a systematic investment plan. It enables investors to make a set monthly contribution to their chosen mutual fund. It is a disciplined and flexible approach to wealth creation in the long term.

While SIP might help you build a corpus, how do you determine the amount of monthly contribution to get the desired fund? This is where the SIP calculator becomes helpful. The mutual fund SIP calculator estimates your returns depending on the time horizon and monthly contribution. For more on the SIP calculator and its benefits, read on.

What is a SIP Calculator?

SIP calculator is an online application that allows you to estimate the returns on your investments. It also assists in determining the monthly contribution necessary over a specific period to achieve the target corpus. In other words, it is a valuable tool for planning your short-term and long-term financial goals.

The calculator is highly effective in computing complex financial calculations. You have to provide a few inputs, and the result is available in a matter of seconds. However, remember that actual results may vary due to various factors, including market circumstances.

How to Use SIP Calculator?

SIP calculators are simple devices that everyone may operate without any assistance. You need to submit the information mentioned below.

• Monthly investment amount
• Investment period
• Expected annual returns

First, input the monthly investment amount in the plan. It depends on your budget and convenience. Following that is the SIP tenure for which you wish to invest on a regular basis. You should also specify your investment frequency throughout the policy. Lastly, enter the expected rate of return on your investments. The fund's past performance often determines this value. 

After inputting the data, click on the calculate button. You may now obtain the corpus created at the end of the given time period. Additionally, you may also change the entered information to suit your needs and budget.

Why Use SIP Calculator?

There are multiple benefits to using a mutual fund SIP calculator, some of which are listed here.

• Quick and Accurate

SIP calculator is a simple device that even inexperienced people may use. It accurately assesses the target corpus with a minimal margin of error. By using the online tool, there is no need to do manual calculations saving time and effort.

• Free to Use

You may use the SIP calculator to make all complex calculations for free.

• Helps in Making Better Investment

You may alter your information to get the best investment strategy for reaching your financial goals. It is feasible to do this by adjusting the monthly investment amount and the tenure.

A Systematic Investment Plan is a very predictable type of investment that allows you to deploy modest resources in equity markets. However, to achieve success and select the right investment plan, the SIP calculator proves to be a dependable partner. It enables you to choose the best strategy for your pleasant future.