# How can I Calculate SIP Returns on Mutual Funds Investment? Mutual Funds Investment: A Systematic Investment Plan or SIP is one of the simplest ways to invest money. In fact, it’s really not much more than a fancy term for a regular investment plan. The beauty of this plan is that it helps you make consistent long-term investments in accordance with a set timetable and at a predictable frequency.

## Extended Internal Rate of Return:

Computing SIP returns may be difficult because each investment is held for a different period of time. As a result, employing the methods to calculate returns for lumpsum investments is not a suitable fit. As a result, you must utilise XIRR to determine the returns on your Systematic Investment Plans.

XIRR is an Excel formula that calculates the extended internal return rate by taking into account numerous cash flows.

In order to use XIRR, you need to know the following amounts:

• Amount of SIPs
• SIP investment dates
• Redemption Date
• Amount of Redemption

The XIRR formula is as follows:

= XIRR (values,dates,guess)

Here is a step-by-step breakdown of using the XIRR function in Excel

• Open MS Excel
• Create a new table with 2 columns.
• Input SIP investment dates and amount of SIPs in the 2 columns.
• Input the date of redemption and the amount of redemption in the very last row.
• Input the XIRR formula in any cell.
• Select the column with values for values in the XIRR formula.
• Select the column with dates for dates in the XIRR formula.
• Skip the Guess section of the XIRR formula.
• You will get a value from the formula.
• Multiply the given value with 100.
• You will get the XIRR value in percentage.

This percentage amount is your SIP return. You can now calculate it online via SIP return calculators.

## Online SIP Calculator

Open your door to SIP Investing with ET Money’s SIP Return Calculator tool, the most accurate way to calculate a SIP. Now you can estimate your future value based on a desired fixed deposit amount and rate of return per annum. Just enter a period of investment and see how much you will be worth after a fixed number of years!

Being the best SIP calculator available, ET Money’s online SIP calculator assists you in analysing three statistics: your principal amount, the returns gained on your principal amount, and your investment’s future worth. It estimates how much you would make on your SIP investment if you put in a particular amount per month in SIP for certain years at a defined rate of return. You only need to enter these figures into our online Systematic Investment Plan calculator.

For example, let’s say you are expecting an amount of 10,00,000 INR after 6 years of SIP investment. If you provide the same details in our online SIP calculator, it will show you the amount you need to invest monthly in SIPs to get the goal amount. In this case, the recommended monthly investment amount is 10,795 INR and the earned interest amount is 2,23,000 INR. Another feature of our best SIP calculator is that apart from showing your SIP details, it also provides top fund recommendations with their annualised 5-year returns for your investment goals.

### Advantages of Online Calculators over Manual Calculation:

• Quick Results
• Extremely User-friendly