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Access Online Returns Calculation
24 Jan 2023

When calculating returns on a lump sum investment, your high school maths will suffice. Though, if you are investing on a regular basis, such as once a month through an SIP, high school maths may not be sufficient to solve the problem. An SIP investment is made on a set date at regular intervals. When you make the investment, you will receive a fixed number of units based on the scheme's current NAV.

You would accumulate a vast amount of units over time. As a result, determining the overall returns you have made over a time becomes challenging. This is due to the fact that each SIP instalment may have performed differently. Don't be concerned. All you need is a computer and the Excel programme to compute the return on all of your assets over time. You can use the XIRR formula to calculate the returns on your SIPs over time.

  • Step 1 - Fill out one column with all of your SIP dates. Assume you began investing in January 2016 and your SIP date is the 10th of each month.
  • Step 2 - The SIP amount, for example, is Rs 2,000. You must put -2000 as the amount. The minus symbol is crucial since it represents monetary outflow.
  • Step 3 - Simply enter the date you wish to verify the returns of all the units you own in the same fields as the SIP date and SIP amount. You can check the market value of your holdings by entering into your AMC online account or by consulting your most recent statement.
  • Step 4 - Make use of the XIRR function. Open the XIRR function by moving your cursor to a blank cell. It will request three parameters from you: Dates, Values and Guess. Choose the cells with the market value and SIP amount for Values. As for dates, choose the cells with SIP dates as well as the date you want to calculate the returns. You can leave the Guess field empty and press the Enter button.
  • Step 5 - The outcome would indicate the return on your SIP investments on the date of your choosing.

How does the SIP Return Calculator function?

The compound interest formula is utilised by SIP investment calculators in order to determine the potential returns. The calculator makes projections about potential profits based on the frequency with which compounding is taken into account. In addition, the SIP calculator requests for the monthly amount that will be invested, the length of time that the investment will be held, and the projected rate of return on the SIP.

The online SIP lumpsum calculator will compute the maturity amount as well as the wealth gained through mutual fund investments. One can also set a target amount that corresponds to their financial goal and then reverse compute the monthly amount to be invested for the specified duration and rate of development.

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