Mutual Fund SIP Returns Calculator

Published: May 10, 2013 at 6:00 am

Last Updated on

Use this suite of calculators to compute SIP and lump sum returns, compute SIP corpus and determine SIP amount needed for a goal. This represents an upgrade of my understanding of (a) excel functions and (b) the compounding process. The calculators also help illustrate a common error in converting monthly  returns to annual returns.

First some yada yada  (to borrow a phrase fromGoogle toolbar) if you don’t mind. Every since the blog got reasonably popular (for my standards) kind readers have called me a ‘Excel expert’ much to my embarrassment. Nothing is farther from the truth. The truth is  I use Excel because it is the only platform accessible to everyone. These calculators can be written in many platforms routinely used for physics research with much better efficiency. Truth is I am still unfamiliar with many Excel functions. I manage because, thanks to my training, I have realized that all of investment and amortization math stems from a single master equation. All one needs is high school algebra to manipulate the master equation to different situations. The Excel functions like FV, PV, IPMT etc. do just this.

Unfamiliarity with Excel features has certain disadvantages: Until yesterday I didn’t know that computing SIP returns can be done in a single step using an Excel function called RATE! I had earlier made a SIP returns calculator in a roundabout way resulting in a 5 Mb file with a minor bug (now corrected)!

The only saving grace is this version (post bug-fix) always returns the correct annual return. Most SIP returns and SIP goal calculators suffer from one flaw: If the assumed annual return is 12% they assume the monthly return is 12%/12 = 1%. This is incorrect. The correct monthly return is = (1+12%)1/12 -1 = 0.949%. You may think this is a small difference. However when computing SIP corpus for a long tenure and when computing annual SIP returns (long and short tenures) it can make quite a big difference.

That said the correct return can easily be computed from the result of the RATE function. The roundabout method I have used might be of some interest/use to enthusiasts, developers and planners.

So I present two versions of the SIP returns calculator:

Hate ads but would like to support the site? Subscribe to our ad-free newsletter and get beautifully formatted full articles delivered to your inbox!

Download the SIP-returns-investor-version

Contents: versatile SIP corpus calculator, goal planner, SIP and lump sum returns (CAGR) calculator

Download the SIP-returns-pro-version

Contents: investor version + my SIP CAGR calculator which directly returns the correct annual return

Thanks to Mr. Sukhvinder Sidhu for pointing out a minor bug in the description.

Do share if you found this useful
Hate ads but would like to support the site? Subscribe to our ad-free newsletter and get beautifully formatted full articles delivered to your inbox!

About the Author

M Pattabiraman author of freefincal.comM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Linkedin
Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management.  He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice.
He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, TamilNadu Investors Association etc. For speaking engagements write to pattu [at] freefincal [dot] com

About freefincal & Content Policy

Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. We operate in a non-profit manner. All revenue is used only for expenses and for the future growth of the site.
Freefincal serves more than one million readers a year (2.5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any kind of paid articles, promotions or PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)

Connect with us on social media

Our Publications


You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingMy first book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.  It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You WantGamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantMy second book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner

The ultimate guide to travel by Pranav Surya

Travel-Training-Kit-Cover This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step.  Get the pdf for ₹199 (instant download)  

Free Apps for your Android Phone

All calculators from our book, “You can be Rich Too” are now available on Google Play!
Install Financial Freedom App! (Google Play Store)
Install Freefincal Retirement Planner App! (Google Play Store)
Find out if you have enough to say "FU" to your employer (Google Play Store)

Comment Policy

Your thoughts are the driving force behind our work. We welcome criticism and differing opinions.Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.

12 Comments

  1. HI, wonder if you could help! I am new to Mutual funds. I want to switch from one to another with the same fund company but before doing so I want to calculate my gain or loss while switching/. how do I do this?

    1. Hi Pereira, You could use Excels XIRR calculator to do this.
      List all dates in one column. List all investments in the next column with a minus sign in front. In the last entry, enter date and maturity value.
      Now in another cell type, =XIRR(B1:B100,A1:A00)
      Here A1 to A100 are the dates and B1:100 the values.
      The answer will give you the compounded annual growth rate.
      If gives an error try
      =XIRR(B1:B100,A1:A00,guess)
      guess is something like a 0.1 or -0.1 to help XIRR.

      If that also does not work, let me know I will have a look.

  2. Pattu: Your calculator are amazing and been using your calculator for many. In MF SIP calculator do you have any which will provide XIRR value for SIP done for some investment period, stopped and valued after few years. Known data are SIP amount, start date and end date, value as of date.

  3. sir, I clicked on above link, but i am unable to download it. The link does not exist. Pl assist me how should I download it. Thank you.

  4. Thanks for the article, I have been using value research portfolio for calculating annual returns. I believe XIRR is same as what Value research calculates on portfolio screen. Any views on that would be appreciated.

  5. Thanks for such a descriptive and eye-opener blog, Prof.

    Correction: I think we need to replace (1+12)^12 by (1+12)^(1/12) here:
    The correct monthly return is = (1+12%)12 -1 = 0.949%.

Leave a Reply

Your email address will not be published. Required fields are marked *