PNB SIP Calculator
Our PNB SIP Calculator is an online investment tool that helps investors understand how much they should invest via SIP to accumulate a certain amount of money at the end of the scheme tenure. The Punjab National Bank Systematic Investment Plan Calculator estimates the returns from the annual return you assume.
Systematic Investment Plans, known as SIPs, are a mode of investment in mutual funds, where you invest a fixed amount in a scheme at regular intervals. With SIPs, you can invest in mutual funds every week, month, or every quarter.
How Does Our PNB SIP Calculator Work?
Below is the formula used by our SIP Calculator.
In the above formula:
FV is the amount you receive upon maturity
P is the amount you invest through SIP each month
r is the monthly rate of return, which is the assumed annual return divided by 12
n is the investment duration in months
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 are making an investment of ₹35,000 each month for one year and assume an annual return of 12%. The monthly rate of return would be 12%/12 = 1/100 = 0.01.
Hence, you will receive around ₹4,48,326 in one year. So, based on the inputs, the PNB SIP Calculator will predict a total wealth of ₹4,48,326 at a 12% expected return on a ₹35,000 monthly SIP for one year.
How Should You Use The PNB SIP Calculator?
In the calculator, you can enter your monthly investment amount, expected annual return rate, estimated annual inflation rate, and the number of years you are willing to stay invested in the scheme. When the numbers are entered into the calculator, the Koshex PNB SIP Calculator will tell you your total investment amount, estimated returns, and the total wealth earned by your investment.
Example
Let’s say, Ms. Clara invests ₹5,000 every month in a PNB SIP scheme and assumes an annual return of 14%. If she selects the tenure of 10 years, then the returns will be as below.
FV = 5,000 × [((1 + 0.14/12)^120 − 1) ÷ (0.14/12)] × (1 + 0.14/12)
FV = 5,000 × 262.0914
FV = ₹13,10,457 (approximately)
Total returns = Future Value − Invested amount throughout the tenure
Total returns = ₹13,10,457 − ₹6,00,000
Total returns = ₹7,10,457
Benefits Of Using PNB SIP Calculator
There are several benefits of using the PNB SIP Calculator and below are a few of them.
- The calculator offers quick and accurate results. On the other hand, manual calculations take a lot of time and you may end up making mistakes.
- It is a hassle-free tool to estimate how much wealth you could build over a certain period of time.
- It offers assistance to investors in helping them understand how much they need to invest to reach their financial goals.