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Srikanth Matrubai is known as the WEALTH ARCHITECT. He is practitioner of Wealthy Habits and author of Amazon Best Selling Book DON'T RETIRE RICH. We strongly urge to follow your Advisor. This blog is purely for information. However, we strongly suggest you to consult a Financial adviser. This blog is purely for information purposes only and we do not take any responsibility whatsoever as the blog content may be changed from time to time and is generic in nature.

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 http://equityadvise.blogspot.com for an indepth Equity Analysis