Quant SIP Calculator
Our Quant SIP calculator is a tool that will help you calculate your returns on your SIP investment based on estimated rates of return and future evaluation of investment after a given period of time. An SIP calculator will help you decide on the right mutual fund investment and create a good financial plan for achieving future financial goals.
It is important to note that an SIP calculator will only be able to estimate your returns. However, actual returns will depend on several factors, such as market movements and fluctuations, tenure, fund performance, etc.
How Does Our Quant SIP Calculator Work?
The Quant SIP Calculator works based on the below 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
Let's say, you invest ₹10,000 every month in a Quant mutual fund SIP. You expect an annual rate of return of 8% and you wish to stay invested for 15 years. The future estimated returns will be calculated as below:
Converting the annual rate of return to a monthly rate: r = 0.08/12 = 0.00667
Calculating the total number of months: n = 15 x 12 = 180
Let's input these values into the formula:
FV = 10,000 × [((1 + 0.08/12)^180 − 1) ÷ (0.08/12)] × (1 + 0.08/12)
FV = 10,000 × 348.3451
FV = ₹34,83,451 (approximately)
How Should You Use The Quant SIP Calculator?
The Quant SIP calculator provides you with an overview of how your investment could grow over a given period of holding on a certain rate of return and contribution. With an online SIP calculator, you can also factor in the effects of inflation. Below are the details you need to input into the SIP calculator to get the maturity value.
- Firstly, enter the amount you plan to invest in your SIP every month.
- Type in the estimated rate of return you expect to earn on your mutual fund investments.
- Mention the investment horizon or the number of years you intend to keep investing in your SIP.
Once you have entered the above details into the SIP calculator, it will give you the future value, total investment amount, total returns, and the growth chart.
Example
Mr. Basil wishes to invest ₹2,000 every month and expects an annual rate of return of 12%. He plans to stay invested for 10 years.
In the first step, you need to 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 = 10 x 12 = 120
Now, we have to be using these values in the SIP calculator formula:
FV = 2,000 × [((1 + 0.12/12)^120 − 1) ÷ (0.12/12)] × (1 + 0.12/12)
FV = 2,000 × 232.339
FV = ₹4,64,678 (approximately)
Benefits Of Using Quant SIP Calculator
There are many advantages to using an SIP calculator. Some of them are listed below.
- An SIP calculator helps you finalize your investment amount. When you use the calculator, you can try out several permutations and combinations to understand more about the amount you can invest to achieve a certain financial goal.
- The calculator helps you get a clear picture of your returns. Even though you cannot accurately predict the returns, you can get a basic idea of your returns.
- The calculators are easy to use. All you need to do is enter some basic details to get the results quickly. It is completely free to use and gives you error-free results every time.