How to Calculate Hourly Wage from Yearly Salary

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SIP (Systematic Investment Plan) Calculator

Calculate your wealth gain and maturity value through monthly compounding.

Total Invested Amount:
Wealth Gained (Interest):
Total Maturity Value:

What is a SIP Calculator?

A SIP (Systematic Investment Plan) Calculator is an essential tool for investors planning to build long-term wealth. Instead of investing a lump sum, a SIP allows you to invest a fixed amount of money regularly (usually monthly) into a mutual fund or other investment vehicle. This tool helps you estimate the potential returns on those investments based on historical market trends and the power of compounding.

How SIP Calculations Work

The calculation uses the formula for the Future Value of an Annuity Due:

FV = P × ({[1 + i]^n – 1} / i) × (1 + i)
Where:

  • P: Monthly Investment Amount
  • i: Monthly Rate of Interest (Annual Rate / 12 / 100)
  • n: Total Number of Monthly Installments (Years × 12)

Benefits of Investing via SIP

  • Rupee Cost Averaging: You buy more units when prices are low and fewer units when prices are high, averaging out your cost.
  • Disciplined Saving: It automates your investment habit.
  • Compound Interest: By reinvesting returns, you earn interest on your interest, leading to exponential growth over decades.

Example of Wealth Growth

Monthly SIP Duration Return Rate Estimated Wealth
$100 10 Years 12% $23,234
$500 20 Years 12% $499,574
$1,000 30 Years 15% $7,009,820
function calculateSIPWealth() { var monthlyInvestment = parseFloat(document.getElementById('monthlyInvestment').value); var annualRate = parseFloat(document.getElementById('rateOfInterest').value); var years = parseFloat(document.getElementById('years').value); if (isNaN(monthlyInvestment) || isNaN(annualRate) || isNaN(years) || monthlyInvestment <= 0 || annualRate < 0 || years 0) { maturityValue = monthlyInvestment * ((Math.pow(1 + i, n) – 1) / i) * (1 + i); } else { // For 0% interest case maturityValue = monthlyInvestment * n; } var totalInvested = monthlyInvestment * n; var wealthGained = maturityValue – totalInvested; // Formatting results document.getElementById('resTotalInvested').innerText = "$" + totalInvested.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('resWealthGained').innerText = "$" + wealthGained.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('resMaturityValue').innerText = "$" + maturityValue.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); // Show results document.getElementById('sip-result-box').style.display = "block"; }

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