DHFL SIP Calculator
Our DHFL SIP calculator helps you calculate your SIP returns on your monthly SIP investment amount. It is simple and hassle-free to use, including for first-time investors. It shows how much your investments could grow to, based on the return you assume.
An SIP (Systematic Investment Plan) refers to a systematic mode of investment made periodically. It lets you invest in a mutual fund scheme of your choice at regular intervals. Over the long term, SIPs give your money time to grow, though returns are not fixed. With an SIP, you can start investing in most mutual funds for as low as ₹500 on a monthly, quarterly, semi-annual, or annual basis.
How Does The DHFL SIP Calculator Work?
The SIP calculator works on the below formula:
where:
FV is the future value of your investment
P is the monthly investment amount
r is the monthly rate of return, which is the assumed annual return divided by 12
n is the total number of months or the investment duration
Each month’s instalment is counted at the start of the month, which is why the formula ends with × (1 + r).
Example:
Let's say you wish to invest ₹3,500 in a monthly SIP and want to continue your SIPs for 10 years. You are expecting a rate of return of 9%. The future value of your SIPs will be calculated as below:
Convert the annual return rate to a monthly rate: r = 0.09/12 = 0.0075
Calculate the total number of months: n = 10 x 12 = 120
FV = 3,500 × [((1 + 0.09/12)^120 − 1) ÷ (0.09/12)] × (1 + 0.09/12)
FV = 3,500 × 194.9656
FV = ₹6,82,380 (approximately)
How Should You Use The DHFL SIP Calculator?
You can calculate your SIP returns using the DHFL SIP calculator by following the steps below:
- Type in the SIP amount you will be investing every month.
- Then, enter the expected rate of return on your investment. You can determine this by checking the performance track record of the mutual fund scheme in which you wish to invest.
- The third variable is the number of years you are willing to stay invested in the scheme.
Once the above details are entered, you can learn the maturity amount of your SIPs, the total amount invested, and the estimated returns on your investments.
Examples:
Ms. Leena would like to backpack through Europe in three years. To fund her travel expenses, she is planning to invest ₹10,000 every month and expects an annual return rate of 8%. When we use the calculator, we can see how much Leena will be able to earn from her investments.
Naturally, the first step is to convert the annual return rate to a monthly rate: r = 0.08/12 = 0.00667
Calculate the total number of months: n = 3 x 12 = 36
FV = 10,000 × [((1 + 0.08/12)^36 − 1) ÷ (0.08/12)] × (1 + 0.08/12)
FV = 10,000 × 40.8058
FV = ₹4,08,058 (approximately)
So, if Ms. Leena invests ₹10,000 every month for 3 years with an annual expected return rate of 8%, her SIP investments could potentially grow to ₹4,08,058. This amount would be sufficient for her to fund her Europe travel expenses.
Benefits Of Using The DHFL SIP Calculator
The DHFL SIP calculator is a beneficial tool in several ways.
- The SIP calculator requires minimal details to perform the calculation.
- The calculator offers quick and accurate results in comparison to manual calculations.
- It helps you in planning your finances by allowing you to determine how much you need to invest regularly to achieve a specific financial goal.
- It helps investors make informed investment decisions and align their investments according to their risk appetite, financial goals, and investment horizon.