Commercial Property Mortgage Calculator

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Professional SIP Calculator

Investment Summary

Invested Amount

$0

Estimated Returns

$0

Total Value

$0

function calculateSIP() { var P = parseFloat(document.getElementById('sipAmount').value); var annualRate = parseFloat(document.getElementById('annualRate').value); var years = parseFloat(document.getElementById('tenure').value); if (isNaN(P) || isNaN(annualRate) || isNaN(years) || P <= 0 || annualRate <= 0 || years <= 0) { alert("Please enter valid positive numbers for all fields."); return; } var i = (annualRate / 100) / 12; var n = years * 12; // SIP Formula: FV = P * [((1 + i)^n – 1) / i] * (1 + i) var futureValue = P * ((Math.pow(1 + i, n) – 1) / i) * (1 + i); var totalInvested = P * n; var estimatedReturns = futureValue – totalInvested; document.getElementById('totalInvested').innerText = "$" + totalInvested.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('estReturns').innerText = "$" + estimatedReturns.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('totalValue').innerText = "$" + futureValue.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('result-container').style.display = 'block'; }

Understanding the SIP Calculator

A Systematic Investment Plan (SIP) is one of the most effective ways to build wealth over the long term. Unlike a lump-sum investment, an SIP allows you to invest a fixed amount regularly (usually monthly) into a mutual fund or index fund. This approach leverages the power of compounding and rupee-cost averaging.

How Does an SIP Work?

When you invest via SIP, you purchase units of a fund every month. When the market is high, you purchase fewer units; when the market is low, you purchase more units. Over time, this reduces the average cost per unit, making it a safer strategy for volatile markets.

The SIP Formula

The calculator uses the following mathematical formula to determine the future value of your investments:

FV = P × [((1 + i)n – 1) / i] × (1 + i)
  • P: Monthly investment amount
  • i: Periodic rate of interest (Annual rate / 12 / 100)
  • n: Total number of payments (Years × 12)

Practical Example

Let's look at a realistic scenario for a long-term investor:

Parameter Value
Monthly SIP Amount $1,000
Annual Return Rate 12%
Time Horizon 20 Years
Total Invested $240,000
Estimated Future Value $999,148

Key Benefits of SIP

  • Disciplined Investing: It automates your savings and forces a habit of regular investing.
  • Compounding Power: Small amounts invested early grow exponentially over decades.
  • Flexibility: You can start with as little as $50 per month and increase or stop the SIP at any time.
  • No Market Timing: You don't need to guess when the market is at its bottom; the regular frequency handles the volatility for you.

Disclaimer: Mutual fund investments are subject to market risks. The returns calculated are based on historical projections and are not guaranteed.

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