# Mutual Fund SIP calculator: Investing Rs 5000 or Rs 10,000? Do this for return calculation

What will you get by investing a certain amount of money every month in Mutual Fund SIP in 10 years? If you are a first-time investor, this may be the biggest question on your mind right now. There are hundreds of Mutual Fund SIP calculators available online, including those provided by Mutual Fund managers, to give a rough idea in this regard. You may like to use these calculators to find the expected return on your investment.

For example: In the online SBI SIP Calculator, you can feed values like tenure of investment, the amount you want to invest per month, and the expected rate of return, to find how your money may grow. This calculator shows that by investing Rs 5000 per month for 10 years, you may get Rs 11,61,695.38 at an expected 12% return. At the 8 per cent expected rate of return, your money may grow to Rs 9,20,828.38. Similarly, Rs 10,000 per month may grow to Rs 18,41,656.75 at an expected 8 per cent rate of return. At 12 per cent, your money may grow to Rs 23,23,390.76.

## Should you rely on online SIP calculators?

Online Mutual Fund SIP calculators may provide you with a rough estimate of how your money may grow at a pre-decided expected rate of return. These are just estimates, not exact numbers. As the exact future value of money depends on several variables, including the performance of the market.

However, sometimes these online calculators may fail to provide you correct estimates. Tax and investment expert Balwant Jain advices first-time investors use MS Excel to derive the future value of their money on their own.

“You can use Excel to find the future value of your investment. There are also financial calculators which you can download and use to calculate future value of your money,” Jain told FE Online.

About online calculators, Jain said you can rely on them too but it is good to verify.

With Excel FV function, you can get the future value of an investment. For calculation of this value with FV function, you need to provide details like period of investment, expected rate of interest, monthly amount of payment.

Formula for calculation = FV (rate, nper, pmt, [pv[, [type])

Here, Rate is the interest rate for each period, Nper is the total number of payment periods, Pmt is payment per period, Pv is present value of the investment, and Type is the time when the payments are made (start or end of the year). For correct calculation, the unit of rate and nper should be consistent.