Calculate Your Potential Dividends
Dividend Calculator
The dividend yield calculator, or the dividend calculator, is used to calculate and interpret the dividend yield of the stock in percentage terms. For example, if the company pays out dividends per share of ₹25 per year and the stock is trading in the market at ₹300, then the dividend yield will be (25 / 300) = 8.33%. When you say that the dividend yield is 8.33%, it means that for every ₹100 you invest in the stock, you can expect returns of ₹8.33 per share on this stock. Remember, dividends are never assured but are based on the profits of the company and the decision of the board on how much they want to distribute.
The dividend calculator can be approached in two ways. It can either be looked at as:
- Ratio of total dividends paid in a year to market capitalisation of the company
- Or it can be looked as the Dividend per share / Current Market Price
There is one more point to remember. Nowadays, companies declare interim dividends every calculator. Hence, the dividend yield calculator must consider the total dividends for the full financial year. Some even use 4 rolling quarters, which is also OK
How does the Dividend Calculator work?
The dividend yield calculator shows the expected income an investor can earn from a stock investment at the current market price. Since the price is dynamic, the dividend yield also keeps changing. In the dividend yield calculator, the dividends per share are the numerator, and the market price per share is the denominator. Here is the formula for the dividend calculator.
Dividend Yield = (Annual Dividends Paid per share / Purchased Price per share) X 100
Generally, a dividend yield of above 5% is considered attractive to investors, and you find stocks from PSU banks, metals, and oil companies paying high dividend yields. Let us look at live use of the calculator.
Estimate Your Lumpsum Growth
Calculate the future value of Lumpsum
Investments in Mutual Funds can be broadly classified into two types- lumpsum and SIP. A lumpsum investment is when the depositor invests a significant sum of money on a particular mutual fund scheme. SIP or Systematic Investment Plan, on the other hand, entails the investment of smaller amounts on a monthly basis.
Both these type of mutual fund investment strategies have their fair share of benefits. Lumpsum investments are particularly preferred by a majority of investors, as there are lesser variables involved and returns are generally on the higher side. To find out the estimated returns on your lumpsum mutual fund investment, you may use a mutual fund lumpsum calculator available online.
How can a Lump sum Calculator Help You?
Mutual fund investors can use this calculator to figure out the estimated returns on their investments. Before getting into the benefits of using this calculator, one must know the types of return for a lumpsum investment.
- Absolute return
- Total return
- Annualised return
- Point to point return
- Trailing return
- Rolling return
It’s paramount that an investor understands all these types of returns in details to avail the maximum benefits from their mutual fund investments.
Now that you are familiar with the type of returns, it’s time to delve into the benefits of using a lumpsum return calculator:
This calculator provides you with the estimated returns for the whole investment period. You may calculate your investments’ 1-year, 3-year and 5-year returns using this calculator.
It’s incredibly convenient and easy to use. Even a layperson can use this calculator with relative ease.
It offers a reasonably accurate estimate. Note that mutual fund investments are subject to market risks, and cannot be predicted with pinpoint accuracy.
An enables an investor to plan his/her finances better based on the estimated return they are most likely to receive at the end of their investment period.
Formula to Calculate MF returns
All lumpsum calculator mutual fund uses a specific method to compute the estimated return on investment. It is essentially a compound interest formula with one of the variables being the number of times the interest is compounded in a year.
The formula is as follows:
A = P (1 + r/n) ^ nt
You can use this formula to compute your mutual funds returns accurately. For example, imagine investing Rs. 15 Lakh in a fund with a 12% return for 5-year period compounding every 6 months.
The estimated return in this scenario will be-
A = Rs. 15, 00,000 (1 + 12%) ^ 5
As you can surmise, it’s a complex equation which may be out of grasp for a majority of investors. A lumpsum MF calculator will calculate it instantly. In this case, your estimated return at the end of a 5-year period shall be Rs. 26, 43, 513.
How to use Abira’s lumpsum calculator?
The lumpsum calculator available on the Abirawealthmanagement website is easily navigable. Follow the steps mentioned below to calculate your ROI on mutual funds:
Provide required variables at their designated slots. You may also use the slider to adjust values.
The calculator will provide you with an estimated value in seconds.
Lumpsum investments are one of the most widely availed investment vehicles, most of which have a time-proven history of yielding high returns. You may begin your investment with a smaller amount and increase it as you become more comfortable with the procedure
Forecast Your SIP Maturity
Calculate the future value of your SIP investment
What is a SIP Calculator?
A SIP calculator is a simple tool that allows individuals to get an idea of the returns on their mutual fund investments made through SIP. SIP investments in mutual funds have become one of the most popular investment options for millennials lately.
These mutual fund sip calculators are designed to give potential investors an estimate on their mutual fund investments. However, the actual returns offered by a mutual fund scheme varies depending on various factors. The SIP calculator does not provide clarification for the exit load and expense ratio (if any).
This calculator will calculate the wealth gain and expected returns for your monthly SIP investment. Indeed, you get a rough estimate on the maturity amount for any of your monthly SIP, based on a projected annual return rate.
How can a SIP return calculator help you?
SIPs are a more lucrative mode of investing funds compared to a lump sum amount according to several mutual fund experts. It helps you become financially disciplined and create a habit of savings that can benefit you in the future.
A SIP calculator online is a beneficial tool, which shows the estimated returns you will earn after the investment tenure.
Few of the benefits of SIP calculators include –
Assists you to determine the amount you want to invest in.
Tells you the total amount you have invested.
Gives an estimated value of the returns.
How do SIP calculators work?
A SIP plan calculator works on the following formula –
M = P × ({[1 + i]^n – 1} / i) × (1 + i)
In the above formula –
M is the amount you receive upon maturity.
P is the amount you invest at regular intervals.
n is the number of payments you have made.
i is the periodic rate of interest.
Take for example you want to invest Rs. 1,000 per month for 12 months at a periodic rate of interest of 12%. Now, to calculate the SIP maturity amount, we need the monthly rate of return (i).
A common mistake is to simply divide the annual return by 12. For example, taking 12% annual return as 12 ÷ 12 = 1% per month is not correct because returns are compounded.
The right way is to convert the annual return into a monthly return by using the following formula:
Monthly Return = {(1 + Annual Return)^1/12} – 1
So, for an annual return of 12%, the effective monthly return comes to about 0.95%, not 1%.
This is because if you compound 0.95% for 12 months, it gives back 12% annually. But if you assume 1% monthly, the compounded annual return becomes more than 12%, thus giving an inflated result.
Hence, using the above formula, the monthly rate of return will be:
i = (1 + 0.12)1/12 −1
= 0.0095 or 0.95%
Therefore,
M = 1,000 x ({[1 +0.0095 ]^{12} – 1} / 0.0095) x (1 + 0.0095), which gives ₹12,766 approximately in a year.
Please note that the rate of interest on a SIP will differ as per market conditions. It may increase or decrease, which will change the estimated returns.
Map Your SWP Income Stream
SWP (Systematic Withdrawal Plan) calculator
SWP stands for systematic withdrawal plan. Under SWP, if you invest lump sum in a mutual fund, you can set an amount you’ll withdraw regularly and the frequency at which you’ll withdraw.
For example, let’s say you invested in HDFC Top 200 Fund an amount of ₹1 lakh for a year. Let’s assume that you decided to withdraw an amount of ₹10000 per month. So every month, your investment in the fund will reduce by ₹10000. The amount left every month after withdrawal will continue to remain invested.
Use the above SWP calculator to know how much you can withdraw from your lumpsum investments.
How can a SWP calculator assist you?
SWP (Systematic Withdrawal Plan) Calculator
As per the Systematic Withdrawal Plan, an individual needs to invest a particular amount and withdraw a certain amount of the corpus invested each month. After withdrawal, the amount will be deducted from the investment while it continues to accumulate interest.
It is difficult to accurately calculate the monthly withdrawals and total matured sum. Abira can help you with this complex calculations with the its SWP calculator. This Systematic Withdrawal Plan calculator easily computes your matured sum as per your monthly withdrawals precisely. Calculators are simplifying the way people invest in mutual funds.
Example of Systematic Withdrawal Plan
As mentioned before, the SWP allows investors to generate both monthly revenue as well as an accumulated sum at the end of the maturity period. Refer to this investment and withdrawal schedule for an in-depth idea.
Here, an individual has invested Rs. 50,000 for tenure of 1 year along with a systematic withdrawal of Rs. 1,000 per month. Interest rate stands at 10%.
As such, total return of investments after the end of the tenor stands at Rs. 4,565.
How to use SWP calculator?
The calculator is user-friendly and easy to use first time out. However, you need to ensure that all values are properly put in.
You will find three columns namely tenure, expected return and amount invested. Fill in the values as per your investment plan.
Enter values and calculate to find a similar SWP returns chart as mentioned above.
