Saturday, March 21, 2009

Formula for Calculating SIP Return

Here is the formula for SIPs return calculation.

A = S*R*(R Power n -1)/(R-1)
In the above formula -
A = maturity amount
S = SIP amount (plz. note in case of multiple monthly SIPs it`s advisable to clubbed all SIPs considering a big single SIP)
n = Time duration of SIPs
R = 1 + r/100 (where r is mly. rate of return)

Plz. note if the SIP frequency is qtly. adjust the rate of return to it`s frequency.

The above formula is some what complicated to calculate manually so it`s advisable to use EXL sheet.

Thanks to Ashal for valuable inputs

Also visit for an indepth Equity Analysis


How to Become Rich: 12 Lessons I Learnt from Vedic and Puranic Stories

Featured Post

DIWALI BONUS? use your Head not HEART !!!

Happy Diwali Friends, Its BONUS TIME ! Whether you are salaried person or self employed, Diwali is one festival where BONUS is assured. ...