What Is the PNB SIP Calculator?
Systematic Investment Plans (SIPs) are among the preferred investment options for individual investors. They enable investors to inculcate financial discipline while giving them an opportunity to unlock stellar returns on their investments. However, a plethora of SIP plans are available, making it difficult for investors to choose the right one.
An sip calculator is a nifty tool that enables investors to evaluate SIP options. Among these is the PNB SIP calculator that helps investors to estimate their potential returns from SIPs offered by the Punjab National Bank (PNB). This calculator considers inputs such as the monthly investment amount, expected rate of return, and tenure to calculate the estimated returns in graphical and numerical formats.
The tool provides an easy and quick way for investors to understand the potential returns from their SIP investments and make informed investment decisions. The PNB SIP calculator can be especially helpful for investors new to SIP investments who want to estimate the potential returns on their investment before making any commitment. The online PNB SIP calculator allows investors to manage their finances and investments effectively and efficiently.
How Does the PNB SIP Calculator Work?
An online SIP calculator uses the compound interest formula to estimate the potential returns you can earn on your investments. You just have to enter the investment amount, expected rate of return and the investment duration.
Once you have entered the details above, the online SIP calculator will display the total amount invested, estimated returns, and the maturity value of the investment.
The PNB SIP calculator formula that calculates returns on your SIPs is below:
A = P*[{((1+i)^n)-1}/i]*(1+i)
Where,
A is the amount you will receive
P is the periodic SIP investment amount
n is the number of months
i is the expected rate of return
Let’s look at an example to understand the calculation:
Suppose you invest Rs. 5,000 monthly for 2 years, and the expected annual rate of return is 12%.
The total amount accumulated (A) after 2 years of investing Rs. 5,000 monthly at an annual rate of return of 12% would be approximately Rs. 1,36,216.
How To Use the Online PNB SIP Calculator?
The PNB SIP calculator available on Angel One can help you estimate the potential wealth you can accumulate using your SIP.
- Input the monthly investment amount you want to invest in the online PNB SIP calculator
- Using the slider, enter the duration for which you want to invest
- Input the expected rate of return in the PNB SIP calculator
The PNB SIP calculator online will process your inputs and provide estimated returns from your SIP investment along with the maturity value of your investment.
Moreover, the PNB SIP calculator on Angel One platform also enables you to estimate the monthly investment required to achieve a particular financial objective. This functionality is accessible through the target amount tab, where you can input the desired amount, investment duration, and expected return rate.
For instance, suppose you have a financial goal of attaining a maturity amount of Rs. 6,00,000 in 5 years, and you have selected a mutual fund with an estimated return rate of 12.5%. By entering these values into the Angel One SIP calculator, the result will display Rs. 7174 as the monthly SIP value necessary to reach your target amount.
Benefits Of Using the PNB SIP Calculator
Here are the benefits of using the PNB SIP calculator online:
Let's explore the advantages of using the online PNB SIP calculator in detail:
- Easy to use:
The PNB SIP calculator is designed to be user-friendly, allowing even those with limited financial knowledge to use it effectively. It has a simple interface where you can input relevant details such as the investment amount, duration, and expected rate of return.
- Generates results quickly:
One of the key benefits of an online PNB SIP calculator is its ability to provide instant results. After entering the necessary information, the calculator performs complex calculations using predefined formulae and algorithms. The quick results help save time and allow investors to make timely decisions.
- Free to use:
The PNB SIP calculator is available online, free of charge. You can access it on Angel One website. This accessibility ensures that individuals can use the tool without any financial barriers.
- Eliminates manual errors:
When performing manual calculations, errors are always possible, which can significantly impact the accuracy of investment projections. The PNB SIP calculator eliminates this concern by automating the calculation process. By relying on predefined formulas, they minimise the risk of human error and provide accurate results.
- Informed investment decisions:
An online PNB SIP calculator allows investors to gain valuable insights that can drive decision-making. The calculator generates projections of the future value of SIP investments. This information enables investors to assess the potential growth of their investments and make informed decisions.
- Better financial planning:
The PNB SIP calculator helps individuals in their financial planning. It allows them to experiment with different investment amounts, durations, and expected returns. By adjusting these variables, investors can determine the monthly SIP amount required to achieve their financial goals.
PNB SIP Calculator FAQs
What is the PNB SIP calculator?
How to use the online PNB SIP calculator?
Is the online PNB SIP calculator free to use?
What is the minimum amount required to start an SIP?
Is there a penalty if the SIP is withdrawn prematurely?
