Edelweiss SIP Calculator
Our Edelweiss SIP calculator helps investors estimate the mutual fund returns they will make when investing in mutual fund schemes through the SIP mode. The calculator allows investors to calculate the SIP amount that is needed to reach their financial goals on the basis of an expected annual return rate and investment horizon.
SIP (Systematic Investment Plan) is an investment mode through which investors can invest in mutual funds. You can start an SIP for as low as ₹500 and you can invest in the frequency you desire, such as every week, month, six months, or a year. SIPs help investors develop regular investing habits and become more disciplined investors.
How Does The Edelweiss SIP Calculator Work?
The SIP calculator works on the formula mentioned below.
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 renovate your home in another five years. You can invest ₹12,000 every month and expect a rate of return of 12%. Here's how we can calculate how much you will be able to accumulate in five years to renovate your home properly.
In the first step, let's convert the annual return rate to a monthly rate: r = 0.12/12 = 0.01
The second step is to calculate the total number of months = 5 x 12 = 60
The next step is to put these values in the calculator formula.
FV = 12,000 × [((1 + 0.12/12)^60 − 1) ÷ (0.12/12)] × (1 + 0.12/12)
FV = 12,000 × 82.48637
FV = ₹9,89,836 (approximately)
How Should You Use The Edelweiss SIP Calculator?
The Edelweiss SIP calculator is a free online tool that will help you plan your SIP investments efficiently. Below are the steps on how to use the SIP calculator.
- Fill in the amount you want to invest monthly through SIP.
- Enter the rate of return you expect to earn from the mutual fund scheme.
- Then, type in the number of years you wish to stay invested in the SIP.
Now, the calculator will show the amount you should invest every month and the future value of your investments.
Example
Ms. Meena wishes to save for her kids' future expenses. She invests ₹7,500 every month for 10 years and expects a rate of return of 13%. Here's how you calculate the future value of Meena's investments.
Firstly, let's convert the annual return rate to a monthly rate: r = 0.13/12 = 0.01083
Secondly, let's calculate the total number of months: n = 10 x 12 = 120
Now, we have to put all the values in the calculator formula.
FV = 7,500 × [((1 + 0.13/12)^120 − 1) ÷ (0.13/12)] × (1 + 0.13/12)
FV = 7,500 × 246.6807
FV = ₹18,50,105 (approximately)
So, if Ms. Meena invests ₹7,500 every month for 10 years with an annual expected return rate of 13%, her SIP investments could potentially grow to ₹18,50,105. This amount would be sufficient for her to fund her kids’ education expenses.
Benefits Of Edelweiss SIP Calculator
The Edelweiss SIP calculator is one of the most user-friendly calculators on the market. The calculator offers numerous benefits, including the following:
- The SIP calculator is backed by advanced algorithms to calculate and offer highly accurate returns.
- The calculator helps investors plan their finances efficiently by letting them know how much they need to invest to accumulate a certain amount in the future.
- It is free to use and an investor can use it as many times as they want without paying any fee.