SIP Calculator

A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly (usually monthly) into mutual funds or other investment schemes. This calculator helps estimate the future value of your SIP investments based on projected returns, leveraging the power of compounding.

The Future Value Formula for SIP

The future value (FV) of a series of regular investments is calculated using the following formula, assuming investments are made at the beginning of each period:

• $$ FV $$: Future Value of the investment.
• $$ P $$: Periodic Investment Amount (Your monthly SIP amount).
• $$ i $$: Periodic Interest Rate (Calculated as Expected Annual Rate / 12 / 100).
• $$ n $$: Total Number of Investment Periods (Years $\times$ 12, or months directly).

This formula accounts for the compounding effect, where returns earned also start earning returns over time.

Yearly Growth Table

The table shows the estimated growth of your investment year by year. It details the total amount invested by the end of each year, the estimated interest earned during that year, and the cumulative future value at the end of the year.

Key Investment Terms

• Total Investment Amount: The total principal amount invested over the entire period (Monthly Investment $\times$ Number of Months).
• Estimated Returns: The total profit generated from the investments (Total Future Value - Total Investment Amount).
• Total Future Value: The final estimated value of your investment, including both principal and returns, at the end of the investment period.

Disclaimer: This calculator provides estimations based on the projected return rate. Actual returns may vary based on market conditions and fund performance. This is not financial advice.