Apr 9, 2010

Just have a SIP of this Calculator!


As promised while doing a review of online SIP calculators, The Money Quest now brings you an online SIP Calculator.

Like Loan EMI Calculator, SIP Calculator is also a 4-in-1 calculator based on excel. I would like to tell you that although I’ve named it a SIP Calculator, this calculator can help you do a whole lot of financial planning calculations in addition to planning your mutual funds SIPs (Systematic Investment Plans).Besides calculating periodic savings / SIP amount this calculator can help you calculate actual / expected returns, expected maturity / future value and the time period required to achieve your financial / investment goals. Further, the periodic time interval can be monthly (M), Quarterly (Q), Half-yearly (H) or Annually (A).

This SIP calculator consists of four different calculators: SIP Amount Calculator, SIP Returns Calculator, SIP Maturity Value Calculator and SIP Tenure Calculator. Put simply, it can help you perform 4 different SIP calculations:

1. SIP Amount Calculator: It will help you calculate the regular savings & investments you need to do to achieve your specific target. This calculator can help you not only to plan your mutual fund SIPs, but also perform a host of other
financial calculations on your own; say, you require Rs ten lakh after 12 years and would like to know how much monthly / annual savings need to be done to achieve this target if the amount is invested in a financial product / products where the average rate of return (CAGR) is, say, 11% p.a. If you enter these figures in the calculator, the resultant figure is around Rs 3,466 for monthly savings and Rs 39,664for annual Savings.


2. SIP Returns (CAGR) Calculator: First, it helps you in calculating the actual rate of return being earned on your SIP / regular investments. For example, if you’ve been saving and investing, say, Rs 5,000 p.m. for last 5 years and the current maturity value of your investments is, say, Rs 4.10 lakh, the calculator tells you that your current investment yield is 12.44%.

Further, it can also help you in investment planning. Sometimes, you want to achieve a particular financial goal (say, Rs 10 lakh) in a fixed time period (say 10 years) but there’s another constraint: there is time limit to how much you save & invest on monthly basis (say, a maximum of Rs 7,000). Now, this calculator can help you know whether it’s possible or not by telling you the required rate of return you need to earn to achieve the target.


3. SIP Maturity Value Calculator: Consider this: You would like to know how much money you can accumulate in 15 years for your child higher education if you start earmarking Rs 3,000 p.m. and investing it in a diversified equity fund expecting a return of 10% p.a. Just enter the figures in the SIP maturity value calculator and you arrive at the value of Rs 12.05 lakh. What if actual returns are higher than expected, say, 12%? The maturity value changes to Rs 14.28 Lakh, which means that, in such a case, your corpus will be higher by Rs 2.23 lakh.

So, the SIP maturity value calculator will also help you to plan your investments by telling you about the future value of your investments to be made regularly over a period of time (at different rates of return) in a mutual fund SIP / any other financial product.


4. SIP Tenure Calculator: What if you want to know the time period required to achieve your financial goal? This SIP calculator will help you figure out how long it is going to take to reach your desired financial goal, if you save & invest a particular sum on regular basis. For example, it can help you calculate the time period required to become a crorepati if you start a regular investment of, say, Rs 6000 per month in an instrument offering, say, 8% CAGR.



Make the most of this SIP Calculator! And if you come across any bug or face any other difficulty in operating it, please let me know.


Also see:

1. PPF Calculator
2. Tax Calculator FY 2009-10
3. 5 things to avoid while investing in equity funds

6 comments:

  1. Hi Fisher,
    Kudos for this excellent blog on financial literacy! Do checkout our efforts at providing unbiased financial guidance at www.investmentyogi.com. There are some easy to use widgets you might be interested in: http://www.investmentyogi.com/FinancialCalculators.aspx

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  2. AnonymousMay 27, 2010

    Informative article. It will be great if you could make these SIP calculator Downloadable.

    Thanks,
    Navin

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  3. Brilliant...hats off for the designer

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  4. Good to know there is now a SIP calculator which can help financial analysts and advisors with their financial businesses. It will definitely help in producing fast and accurate analysis. We just have to be careful on how to use it.

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  5. Dear Fisher, Though your sip calculator is very good but it would be nice if we take provision of inflation in it so that more accurate planning can be done.
    Thanks!

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  6. I was trying to use this CAGR calculator. I entered a value of 99925 in Maturity value. It gives me some error which I dont understand "Increase 1 or decrease 3"

    ReplyDelete

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