Mahindra SIP Calculator
Our Mahindra SIP calculator is a user-friendly tool that helps you make informed investment decisions. Whether you are a seasoned investor or just beginning to invest, our SIP calculator will help plan your financial journey.
A Systematic Investment Plan (SIP) is a smart and disciplined way to grow your wealth over time. With an SIP, you can make regular contributions so that you can take advantage of the power of compounding. Our SIP calculator can help predict the future value of your SIP investments.
How Does Our Mahindra SIP Calculator Work?
Our Mahindra SIP calculator works based on the below calculator 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
If you invest ₹7,000 every month for 8 years and earn a rate of return of 9%, here's how your returns will be calculated.
Change the annual rate of return to a monthly rate: r = 0.09/12 = 0.0075
Change the total number of months: n = 8 x 12 = 96
Now, put the values in the formula:
FV = 7,000 × [((1 + 0.09/12)^96 − 1) ÷ (0.09/12)] × (1 + 0.09/12)
FV = 7,000 × 140.9051
FV = ₹9,86,336 (approximately)
How Should You Use The Mahindra SIP Calculator?
Using our SIP calculator is simple and straightforward. Here's a step-by-step guide:
- Firstly, enter the amount you plan to invest every month. This is your SIP installment.
- Then, enter the annual return rate you expect from your investments.
- The next step is to enter the number of years you intend to invest in your SIP.
Once you have entered the above figures, the SIP calculator will tell you the future value, total investment amount, and total returns.
Example
Mr. Edward plans to invest ₹12,000 every month and he expects a 7% rate of return. He wants to stay invested for 13 years.
Below is how he can calculate the future value of his investments using the SIP calculator formula:
The first step is to convert the annual rate of return to a monthly rate: r = 0.07/12 = 0.00583
Calculating the total number of months: n = 13 x 12 = 156
Now, we have to put these values into the above formula:
FV = 12,000 × [((1 + 0.07/12)^156 − 1) ÷ (0.07/12)] × (1 + 0.07/12)
FV = 12,000 × 254.8086
FV = ₹30,57,703 (approximately)
Benefits Of Using Mahindra SIP Calculator
Our Mahindra SIP calculator has many advantages. We have listed a few of them below:
- Our SIP calculator provides you with precise projections so you can set realistic financial goals and track your progress.
- The calculator can help you compare different SIP scenarios so that you can figure out which investment plan suits you.
- When you see the future value of your investments, you will stay committed to your financial plan. So, an SIP calculator will help you stay motivated.