HDFC SIP Calculator
Our HDFC SIP Calculator will allow you to estimate the returns on your mutual funds investments when you invest in them through Systematic Investment Plans (SIPs). The calculator takes into consideration your monthly investment amount and the investment duration to offer you a value of SIP based on an estimated rate of return.
SIPs have become increasingly popular in the past few years. With an SIP, you can invest a specific amount at regular intervals. You can choose to invest every week, month, or quarter. With an SIP, you leave aside the burden of lumpsum investments as you can begin with smaller, more affordable investments at regular periods.
How Does Our HDFC SIP Calculator Work?
The below formula is how the HDFC SIP calculator works.
where:
FV is the future value of your investment
P is the monthly investment amount
r is the monthly interest rate divided by 12
n is the total number of months or the investment duration
Example:
Let's say you start making a monthly investment amount of ₹5,000 for 15 years. You are expected to earn an annual rate of return of 10%. Here's how the calculation will work.
Changing the annual rate of return to a monthly rate: r = 0.10/12 = 0.00833
Total number of months: n = 15 x 12 = 180
Let's put the values in the formula:
FV = 5000 x ((1 + 0.00833)^180 - 1) / 0.00833)
FV = 5000 x (3.45127) / 0.00833
FV =₹20,71,590 (approximately)
How Should You Use The HDFC SIP Calculator?
The HDFC SIP calculator will consider your inputs and give you accurate results. Below is how you can use the HDFC SIP calculator.
- Firstly, you should enter the monthly SIP amount you wish to invest
- In the second step, you need to enter the number of years you wish to stay invested
- Next, you should type in the approximate rate of return
Once you have entered the values, the calculator will show you the estimated value of your investment at the end of the installments and the value of your returns.
Examples:
Ms. Chitra wishes to invest ₹2,000 every month for 5 years. She expects to earn an annual rate of return of 12%.
Using the calculator formula, here’s how she can calculate the future value (FV) of her investments.
In the first step, let's convert the annual rate of return to a monthly rate: r = 0.12/12 = 0.01
The next step is to calculate the total number of months: n = 5 x 12 = 60
Let's put these values into the above formula:
FV = 2,000 x ((1 + 0.01)^60 - 1) / 0.01
FV= 2000 x (0.81669) / 0.01
FV = ₹1,63,338 (approximately)
So, if Ms. Chitra invests ₹2,000 every month for 5 years with an annual expected return rate of 12%, her SIP investments could potentially grow to ₹1,63,338.
Benefits Of Using HDFC SIP Calculator
There are many advantages to using an HDFC SIP calculator. We have listed some of the benefits below for your perusal.
- The HDFC SIP calculator offers an efficient and easy tool to find out the SIP performance of HDFC mutual fund schemes.
- The calculator is free to use and pretty simple to use as well.
- The calculator helps save time from doing complex manual calculations.