Investing is a process where you invest money to multiply it by eating returns on the same. To understand how much return you can gain, you can use an investment calculator, which can assist in determining a variety of variables. You can use it to calculate a specific parameter for an investment plan.

Below mentioned are different types of investment calculators that can help you to calculate an investment return.

**1. NPS Calculator**

The NPS Calculator stands for National Pension Scheme Calculator. It is a tool that helps individuals plan for retirement and calculate their expected pensions. This scheme is an initiative by the Government of India that helps to provide retirement benefits to all Indian citizens.

With the help of this calculator, you can make informed decisions about your future and take steps to secure a comfortable retirement. It is one of the best investment calculators.

**NPS Formula:**

A = P (1 + r/n) ^ nt

The variables are:

A = amount

P = Principal sum

r = Rate of interest per annum

n = Number of times interest compounds

t = Total tenure

**2.** **SIP Calculator**

A SIP calculator online helps individuals to calculate the returns on their SIP or mutual funds investment based on an estimation of return and the amount of return investment after some years. It provides an estimate of the investment to potential investors. This calculator helps to plan finances effectively by providing a clear projection of investment growth.

**The SIP Formula:**

M = P × ({[1 + i]^n – 1} / i) × (1 + i).

Where,

P: amount invested at regular intervals

M: amount you will get upon maturity

n: Number of times payments are made

i: interest rate periodically

If Sheetal wants to invest Rs. 5000 monthly for one year at a 12% periodic interest rate. Then, the return rate every month will be 12%/12 = 0.01.

Thus, Maturity amount (M) = 5,000 x ({[ 1 + 0.01] ^ 12 – 1} / 0.01) x (1 + 0.01)

M= Rs. 12,809 (approx.)

**3.** **Compound Interest Calculator**

A compound interest calculator helps calculate investments’ possible growth over time. With the help of this calculator, you can calculate the interest you can earn on your investment over the years based on a chosen number of compounds per year.

**Compound Interest Formula:**

A = P(1+r/n)^nt

Where:

A = the investment future value

P = the principal balance

r = the annual interest rate (decimal)

n = Number of years

t = the time in years

^ = to the power of

For example, Sourav has invested Rs 10,000 for ten years. He earns 5% interest on his investment, and his interest gets compounded annually.

P = 10,000

r = 0.05

n = 1

t = 10

A = 10000 (1 + 0.05/1)^10 = Rs 16,288.95

**4. Gratuity Calculator**

Gratuity is the money paid by the company’s employer to their employees in return for services they offer. A gratuity calculator calculates the gratuity amount based on the formula.

**Gratuity Formula:**

(15 * last drawn salary amount * term of working) / 26.

A gratuity calculator estimates the money you will receive on leaving the job after rendering a continuous five years of service. It is an effective tool for calculating the gratuity on leaving the company. For example, you have worked with a company for ten years. Your last drawn basic salary and dearness allowance were Rs 30,000. Therefore, the amount of gratuity = 10 * 30,000 * 10 / 26 = Rs 115,384.

**5. EPF Calculator**

The Employee Provident Fund was enacted after passing the EPF Act in Parliament. Under this law, India’s Employees Provident Fund Organisation (EPFO) controls the funds deposited by an employer and an employee in a permanent account affixed by a unique account number (UAN). So, an EPF Calculator helps to calculate the interest which has been accumulated.

In the EPF Calculator formula calculation, you must enter your present age, monthly salary, dearness allowance, EPF contribution amount, and retirement up to 58 years. That’s it and you will get an amount.

**Conclusion**

An investment calculator is a very effective tool that helps estimate the amount you are expected to receive at the end of the investment period. Knowing this is an essential aspect as it can affect your financial planning. If you wish to use different investment calculators, visit Dhan and start your investing journey.