However, CAGR is the most effective method to estimate SIP returns.Д¬AGR or Compound Annual Growth Rate is the rate at which an investment grows each year for the entire tenure of the investment. SIP return can be calculated using absolute return, annualized returns, CAGR, and XIRR. One can also choose to enter the target amount matching their financial goal and reverse calculate the monthly amount to be invested for the given tenure and rate of growth. The online SIP calculator will automatically calculate the maturity amount and also the wealth to be gained from the mutual fund investments. Furthermore, the SIP calculator requires one to enter the monthly amount they want to invest, the duration of the investment (in years) and the expected rate of return on the SIP. The calculator takes into account the number of times compounding is applicable and estimates the potential returns.

SIP calculators estimate potential return using the compound interest formula. Also, the actual return from the mutual fund investment can be higher or lower than the estimate provided by the calculator. The return from any mutual fund depends on the performance of the fund. The calculator doesnвЂ™t guarantee any returns. It is to be noted that the SIP calculator only gives an estimate based on the inputs provided. They are above average, average, and below-average. ScripboxвЂ™s SIP calculator estimates the return in terms of maturity amount based on three different growth scenarios. The target amount approach uses the target amount the investor wants to achieve in the said duration to estimate the current investment required.

The investment amount approach is the most used one where the investor inputs the investment amount, return expected, tenure and step-up amount. The calculator works on the investment amount approach and target amount approach. The investment amount, potential capital gains and maturity amount are clearly shown. ScripboxвЂ™s SIP calculator gives the output in both graphical and chart format. It requires simple inputs like investment amount or target amount, expected rate of return, investment tenure, and step-up rate. The calculator works on the inputs given by the user. A SIP Calculator is an online tool that estimates the return from a SIP investment.

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