AIP Calculator
Calculate how much you need to save or how much you will accumulate with your AIP
Total value of investment
$5,808,477
What is AIP?
An Automatic Investment Plan (AIP) allows you to invest small amounts of money in mutual funds on a regular basis rather than making a lump sum investment. This strategy helps to average out investment costs and enables compounded growth. AIPs are flexible, allowing you to choose the amount and duration based on your financial goals.
What is an AIP Calculator?
If you're planning to invest in mutual funds, an AIP calculator can help you determine how much you need to invest periodically to build a desired corpus. It is an online tool that allows investors to estimate potential returns from an Automatic Investment Plan (AIP) in mutual funds.
How do AIP Calculators work?
The AIP Calculator is a free, user-friendly tool that instantly calculates the future value of investments over time. It helps investors visualize how their wealth will grow by entering the AIP amount, expected rate of return, and investment duration.
The AIP calculator uses the following formula to compute estimated returns:
FV = [P x R x (1 + i)n-1/i] x (1 + i)
Where:
- FV = Future value of the investment
- i = Compounded rate of return
- R = Expected rate of return
- P = AIP contribution amount
- n = Number of installments
Benefits of Investing Through AIP
- Encourages financial discipline by promoting regular savings.
- Helps build a large corpus through small, systematic investments.
- Offers flexibility to increase or decrease the investment amount based on financial conditions.
- AIP investments are convenient, with some plans allowing a minimum investment of $100 per month.
Advantages of Using an AIP Calculator
- Free and user-friendly with unlimited access.
- Provides a transparent view of potential returns.
- Automates complex calculations, saving time.
- Helps plan monthly investments to meet financial targets.
How to Use an Online AIP Calculator
Using an AIP Calculator is simple:
- Open the AIP Calculator webpage.
- Enter the following details:
- Monthly investment amount
- Investment duration
- Expected rate of return
- The calculator will display the total investment amount, future value, and interest earnings.
How Can an AIP Calculator Help You?
An AIP return calculator helps you estimate how much your investments can grow over time with regular contributions. It enables you to:
- See potential future returns based on different investment scenarios.
- Set realistic financial goals and track progress.
- Compare investment plans to make informed decisions.
By using an AIP Calculator, you can create a structured approach to investing and ensure better financial planning.
Examples of AIP Growth
Example 1:
Monthly Investment: $5,000
Duration: 10 years
Expected Annual Rate of Return: 14%
Total Investment: $5,000 × 12 months × 10 years = $6,00,000
Estimated interest earnings: $7,10,457
Future Value: Approximately $13,10,457
Example 2:
Monthly Investment: $10,000
Duration: 10 years
Expected Annual Rate of Return: 14%
Total Investment: $10,000 × 12 months × 10 years = $12,00,000
Estimated interest earnings: $14,20,914
Future Value: Approximately $26,20,914