NJ SIP Calculator

NJ SIP Calculator

The NJ SIP Calculator is a user-friendly online tool that helps investors estimate the future value of their mutual fund investments made through a Systematic Investment Plan (SIP). By inputting a few key details, like monthly contribution, investment duration, and expected return rate, investors can assess how their savings could grow over time.

How the NJ SIP Calculator Works

The calculator uses the compound interest formula for SIP investments, which assumes contributions are made regularly, and returns are compounded monthly.

Key Inputs:

• Monthly Investment Amount (₹): The fixed amount you plan to invest every month.
• Investment Duration (Years): The total time you intend to continue the SIP.
• Expected Annual Return (%): The estimated rate of return per year (pre-tax), typically ranging from 10% to 14% for equity funds.
• Start Date (optional): Helps track investment timeline more accurately.

Output:

• Total Invested Amount: Sum of all monthly SIP payments.
• Estimated Returns: The potential gains accrued from the investment.
• Maturity Value: The final corpus you may receive at the end of the SIP period.

SIP Calculation Formula

The SIP maturity amount is calculated using the following formula:

FV = P × [ (1 + r)^n – 1 ] × (1 + r) / r

Where:

• FV = Future Value (Maturity Amount)
• P = Monthly SIP amount
• r = Monthly rate of return (Annual rate ÷ 12 ÷ 100)
• n = Total number of payments (Years × 12)

Example Calculation

If you invest ₹5,000 per month for 10 years at an expected annual return of 12%, the calculator will show:

• Total Invested Amount: ₹6,00,000
• Estimated Returns: ₹5,47,924
• Maturity Value: ₹11,47,924
  (Note: Actual returns may vary based on market performance.)

Benefits of Using the NJ SIP Calculator

• Quick Projections: Get accurate estimates in seconds.
• Informed Planning: Helps you set realistic financial goals.
• Customizable: Adjust values anytime to compare scenarios.
• No Login Required: Use it freely without creating an account.

Disclaimer : The results given by the above calculator are for illustration purpose only. They are often based on a number of assumptions. The results given are in no way any guarantee of the returns that will be given. Investments in stock markets and securities markets are subject to market risks and other risks. There is no guarantee of the return that will be actually given. Investment in other financial products may also be subject to market risks and other risks. There is no guarantee of the returns that will be given by them. The calculator also does not make any recommendation directly or indirectly. Please consult a registered Financial Advisor before taking any investment decision.