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SWP Calculator
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Investment Calculator

Tracking your investment is an integral part of financial planning. This habit will prevent you from deviating from your financial goals. If you are not good with calculations or arithmetic, then there is no need to panic. There is always an investment calculator available. Serial investors often have multiple investments across different portfolios. To help them with the same, there is an online tool called investment calculator. As the name suggests, an investment calculator is a tool used to calculate a specific investment scheme returns based on a single/multiple parameter over a period of time. The most common parameter which investors look for is the rate of return. The investment calculator is easy and convenient to use, not to mention that it is completely free online. You simply need to put the requested inputs in the calculator and click on calculate, and the results are displayed immediately. Due to the distinct nature of financial instruments, there are different investment calculators for each. Some are specific to SIP mutual funds or simple/compound interest calculators, loan amount calculators to stock market calculators, etc.

Returns Calculator in Investment in India

A returns calculator is a type of an investment calculator which helps you calculate an estimated returns on the capital invested. Returns can be market-linked and vary over different periods of time, thus making it difficult to evaluate the final rate of returns. A returns calculator will help you take care of this specific need.

Variables involved in Investment

Every investment includes the following core elements.

  • Investment Amount: Also known as the principal amount, this is the amount with which you begin your investment. It is typically made up of your savings.
  • Rate of Return: This is expressed as a percentage and varies across different types of financial instruments and calculators. This percentage is very important when it comes to determine the returns on your investment.
  • Investment Duration: This refers to the time period of your investment, i.e. how long the money is invested for. The longer the investment, the better the advantage as you can benefit from the power of compounding.
  • Maturity/End Amount: The final amount received post the investment tenure is the maturity amount.
  • Other Contribution: These are commonly known as top-up payments. Such additions to the principal invested amount will further add to the corpus value.

How Does an Online Investment Calculator Work?

An investment calculator can be easily availed online for free. Simply visit the official website of any advisory company for a desired calculator. Enter the requested details such as type of investment, principal amount, rate of interest, time period and click on submit. Post submission, the calculator will automatically showcase your returns along with other essential details.

Benefits of Investment Calculator

User Friendly

An investment calculator is one of the easiest instruments to use online and it is easily available free of cost. Almost each bank has an investment calculator on their official website.

Planning

An investment calculator is essential for financial planning as it helps you evaluate and determine the right principal to generate the right returns.

ITR

Assists in filing ITR as you are required to submit your investment declarations while calculating income tax.

Multiple Uses

You can use an investment calculator to calculate the returns of different financial instruments such as mutual funds, SIP, premium, etc.

Terms Related to Investments

  • Amount of initial investment: The principal amount with which you begin or will begin your investment.
  • Investment Goal: Your financial goal which you wish to achieve with the invested money.
  • Years to Accumulate: The time period of your investment.
  • Contribution Frequency: The number of times you will make a contribution to your investment.
  • Periodic Contribution: The amount of contribution made by you per period of investment
  • Rate of Return on Investment: This is the rate which describes the final returns over the invested amount along with accrued interest. This is more or less dependent upon the type of investment fund.

FAQs on Investment Calculator

Can I invest ₹10 lakhs in mutual funds?

Yes, there is no upper limit for investing in mutual funds. You can invest ₹10 lakhs via SIP mode or as a lump sum.

How do I calculate gross investment?

Gross Investment is a total value of all the investments made by you.

How do I calculate payback period?

The payback period is the time period which begins once the loan/bond has been successfully subscribed. You can calculate the payback period with the help of an investment calculator.

How do I find the simple interest rate?

The financial instrument in which you wish to invest displays the applicable interest rates for making investment in them. For example, banks display the interest rates for their various investment options.

How do you calculate annual return on investment?

You can calculate the annual return on investment by using this formula SI=PTR/100, where SI is your annual return on investment, P is the principal amount, T is one year for annual basis and R is the rate of interest.

How do you calculate average return on investment?

In order to calculate average return, simply sum all the values of the different sums and divide it by the total count of the sums.

How do you calculate GDP investment?

GDP stands for Gross Domestic Product. It is calculated via the formula GDP = C + I + G + NX, where C is consumption, G is government spending, and NX is net exports

How do you calculate investments?

You can calculate investments based on the principal amount invested for a specific time period and rate with the formula SI=PTR/100, where p is the principal amount, t is time and r is rate of return and SI is simple interest.

How do you calculate monthly return on investment?

You can calculate monthly returns with the following formula [1-(Ending Balance - Net Deposits/starting balance)] x 100. Where you are required to know starting/ending balance of your portfolio along with any withdrawals that were made during a particular month.

How do you calculate return on investment for property?

You need to simple subtract your annual expenses made on the property from the total rental income earned from the property.

How do you calculate return on investment for sales?

You can calculate return on investment for sales via the formula P=SP-CP, where p is sales proceeds, sp is the selling price and cp is the cost price of manufacturing the product.

How do you calculate total return on investment?

The total return of investment depends on multiple parameters. For example, the standard rate of return on an NPS is 8%, going by the simple interest method, ₹10,000 invested for one year @8% will provide a return of ₹800 rupees.

How much do I need to live on interest?

The minimum you need is 20% of your investment portfolio provided the time period and rate of inflation has been adjusted in to the calculation. An investment of ₹10,000 for one year @8% will be subjected to 5%-6% inflation and additional 1%-2% for cost of living.

How much money do you need to retire?

As per your current standard of living (post inflation adjustment), you will require at least 10x of your annual income to meet your retirement needs.

How much of my money should I invest?

Investment is a good habit, you should generally invest close to 30-40% of your monthly income.

How mutual funds returns are calculated?

Mutual Funds are subject to market risks and so are the returns. Also, the returns are depended on the type of mutual fund. The fund house displays the returns generated by the investments in your portfolio.

What is a good return on investment?

A return of 10%-15% or 20% of your investment portfolio is considered as a good return on your investment.

What is annual return on investment?

The returns which include the principal amount along with the interest earned over a year is known as annual return on investment.

What is annualization?

The rate of interest which is recalculated on an annual basis is known as annualization.

What is average rate of return on investments?

The average rate of returns varies from fund to fund.

What is ROI formula?

The basic formula of ROI is Net Profit / Total Investment * 100 = ROI.

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