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SIP Return Calculator

Invested Amount
Est. Returns
Total Value
function calculateSIP() { var monthlyInvestment = parseFloat(document.getElementById('monthlyAmount').value); var annualReturnRate = parseFloat(document.getElementById('annualRate').value); var years = parseFloat(document.getElementById('years').value); if (isNaN(monthlyInvestment) || isNaN(annualReturnRate) || isNaN(years) || monthlyInvestment <= 0) { alert("Please enter valid positive numbers for all fields."); return; } var monthlyRate = annualReturnRate / 12 / 100; var months = years * 12; // SIP Formula: FV = P × ({[1 + i]^n – 1} / i) × (1 + i) var futureValue = monthlyInvestment * ((Math.pow(1 + monthlyRate, months) – 1) / monthlyRate) * (1 + monthlyRate); var totalInvested = monthlyInvestment * months; var estimatedReturns = futureValue – totalInvested; document.getElementById('resInvested').innerText = "$" + totalInvested.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('resReturns').innerText = "$" + estimatedReturns.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('resTotal').innerText = "$" + futureValue.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('sip-result-container').style.display = 'block'; }

Understanding Your SIP Returns

A Systematic Investment Plan (SIP) is one of the most effective ways to build wealth over the long term. By investing a fixed amount regularly, you benefit from the power of compounding and rupee-cost averaging. This calculator helps you estimate the wealth gain and expected returns for your monthly SIP investment.

How SIP Calculations Work

The SIP return calculation uses the future value formula for an annuity due. Unlike a lump sum investment where the entire capital grows for the full duration, in a SIP, each monthly installment earns interest for a different period. The first installment earns interest for the full tenure, while the last installment earns interest for just one month.

Example Case: If you invest $500 monthly for 10 years at an expected return of 12%:
  • Total Amount Invested: $60,000
  • Estimated Returns: $56,170
  • Total Maturity Value: $116,170

Key Benefits of SIP Investing

  • Disciplined Saving: SIP forces a regular saving habit, ensuring you invest before you spend.
  • Rupee Cost Averaging: You buy more units when prices are low and fewer units when prices are high, lowering your average cost per unit over time.
  • Power of Compounding: Small amounts invested over a long period can grow into a significant corpus due to the "interest on interest" effect.
  • Flexibility: You can start with as little as $10-$50 and increase or stop your SIP at any time.

Factors Affecting Your SIP Results

The final value of your SIP depends on three primary factors: the monthly amount, the duration of the investment, and the rate of return. While you cannot control market volatility (returns), you have full control over the amount and the duration. Historically, increasing the duration of an investment significantly reduces risk and increases the probability of higher inflation-adjusted returns.

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