A Systematic Investment Plan (SIP) is a popular and disciplined method for investing in mutual funds. It allows investors to invest a fixed amount of money at regular intervals (usually monthly), making it an accessible and convenient way to build wealth over time. Our SIP Investment Calculator India is designed to help you estimate the potential future value of your SIP investments.
How the Calculation Works
The calculator uses the concept of Future Value of an Annuity to project your investment's growth. The formula is:
FV = P * [((1 + r)^n - 1) / r] * (1 + r)
Where:
FV is the Future Value of the investment (the amount your SIP will grow to).
P is the periodic investment amount (your monthly SIP).
r is the periodic interest rate (annual rate divided by 12, expressed as a decimal).
n is the total number of investment periods (investment period in years multiplied by 12).
For instance, if you invest ₹5,000 per month for 10 years at an expected annual return of 12%:
This calculation helps estimate the total corpus you can build by consistently investing through SIPs.
Why Use a SIP Calculator?
Goal Setting: Helps you set realistic financial goals by showing potential outcomes for different investment amounts and periods.
Investment Planning: Aids in understanding how much you need to invest regularly to achieve a target corpus.
Compounding Power: Demonstrates the power of compounding over the long term.
Informed Decisions: Empowers you to make better investment choices by visualizing the potential growth of your money.
Remember, the rate of return is an estimate and actual returns may vary. It's always advisable to consult with a financial advisor before making any investment decisions.
function calculateSip() {
var monthlyInvestment = parseFloat(document.getElementById("monthlyInvestment").value);
var annualRate = parseFloat(document.getElementById("annualRate").value);
var investmentPeriod = parseFloat(document.getElementById("investmentPeriod").value);
var resultValueElement = document.getElementById("result-value");
if (isNaN(monthlyInvestment) || isNaN(annualRate) || isNaN(investmentPeriod) ||
monthlyInvestment <= 0 || annualRate < 0 || investmentPeriod 0) {
futureValue = monthlyInvestment * (((Math.pow(1 + monthlyRate, numberOfMonths) – 1) / monthlyRate) * (1 + monthlyRate));
} else {
// If rate is 0, future value is just principal * number of periods
futureValue = monthlyInvestment * numberOfMonths;
}
// Display result formatted as Indian Rupees
resultValueElement.innerText = "₹ " + futureValue.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",");
}