Invesco SIP Calculator
Our Invesco SIP calculator is an online financial tool that can help you calculate the returns you would earn on your SIP investments. The calculator can be highly effective in automatically computing complex financial calculations in a matter of seconds. You just have to give a few inputs, and the calculator does the maths in seconds.
You can invest in mutual funds through two modes - lumpsum and SIP (Systematic Investment Plan). SIPs allow you to invest small amounts of money periodically, which suits investors who can’t afford to invest large amounts of money. You don’t have to worry about making manual investments every month as the investment amount will be deducted from your bank account automatically. This suits anyone who wants to invest a fixed amount regularly over a long period.
How Does The Invesco SIP Calculator Works?
We have explained the SIP calculator formula below in detail.
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
You are planning to invest for the long term in mutual funds. You are investing ₹3,000 every month for 30 years, expecting an annual rate of return of 10%. Here's how much you would have accumulated at the end of 30 years.
Firstly, we are converting the annual rate of return to a monthly rate: r = 0.10/12 = 0.00833
Next, you need to calculate the total number of months: n = 30 x 12 = 360
Putting the values in the calculator formula:
FV = 3,000 × [((1 + 0.10/12)^360 − 1) ÷ (0.10/12)] × (1 + 0.10/12)
FV = 3,000 × 2279.3253
FV = ₹68,37,976 (approximately)
How Should You Use The Invesco SIP Calculator?
The Invesco SIP calculator can help you calculate the maturity amount of your SIPs, and you can get the results pretty quickly. Here's a step-by-step guide on how to use the calculator.
- Fill in the amount you want to invest monthly through SIP.
- Type in the annual rate of return you expect to earn from your investment.
- Enter the number of years you are planning to continue your SIPs.
Now, the calculator will show the amount you should invest every month and the future value of your investments.
Example
Mr. Naren looks to invest ₹6,000 every month via SIP. He expects an annual rate of return of 12.5% and wants to stay invested for 10 years. Let's calculate how much his SIP investments could grow to.
In the first step, we need to convert the annual rate of return to a monthly rate: r = 0.125/12 = 0.01042
The next step is to calculate the total number of months: n = 10 x 12 = 120
When we put the above values in the formula, we get:
FV = 6,000 × [((1 + 0.125/12)^120 − 1) ÷ (0.125/12)] × (1 + 0.125/12)
FV = 6,000 × 239.3813
FV = ₹14,36,288 (approximately)
So, if Mr. Naren invests ₹6,000 every month for 10 years with an annual expected return rate of 12.5%, his SIP investments could potentially grow to ₹14,36,288.
Benefits Of Using Invesco SIP Calculator
There are several advantages of using an SIP calculator to calculate how much your SIPs could grow to in the future. We have listed a few of them below:
- The SIP calculator gives you error-free results and saves a lot of time.
- The calculator helps investors plan their finances better by telling them how much they can expect to earn from their investments.
- The calculator helps first-time investors invest with more confidence by showing them the potential of their investments.
- The calculator is free to use, and investors can use it for free as many times as they wish.