Flooring Cost Calculator

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Systematic Investment Plan (SIP) Calculator

Estimate your future wealth and mutual fund returns effortlessly.

Total Invested Amount: $0
Estimated Wealth Gained: $0
Total Future Value: $0

Understanding Your SIP Returns

A Systematic Investment Plan (SIP) is a disciplined way to invest in mutual funds. By investing a fixed amount regularly, you benefit from the power of compounding and rupee cost averaging.

How the SIP Formula Works

The calculation uses the following mathematical formula for future value of an annuity due:

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)

Example: The 10-10-12 Rule

If you invest $500 per month for 10 years with an expected return of 12%:

Metric Value
Total Invested $60,000
Interest Earned $56,170
Total Maturity $116,170

Why Use a SIP?

  1. Financial Discipline: Automates your savings habit.
  2. Compounding: The longer you stay invested, the more your money grows exponentially.
  3. Risk Mitigation: Since you buy more units when prices are low and fewer when high, you average out the cost of purchase.
function calculateSIP() { var monthlySIP = parseFloat(document.getElementById('monthly_sip').value); var annualRate = parseFloat(document.getElementById('return_rate').value); var years = parseFloat(document.getElementById('tenure').value); var resultDiv = document.getElementById('sip-results'); if (isNaN(monthlySIP) || isNaN(annualRate) || isNaN(years) || monthlySIP <= 0 || annualRate <= 0 || years <= 0) { alert('Please enter valid positive numbers for all fields.'); return; } // Rate of interest per month var i = (annualRate / 100) / 12; // Total months var n = years * 12; // Formula: M = P × ({[1 + i]^n – 1} / i) × (1 + i) var futureValue = monthlySIP * ((Math.pow(1 + i, n) – 1) / i) * (1 + i); var totalInvested = monthlySIP * n; var estReturns = futureValue – totalInvested; // Display Results document.getElementById('total_invested').innerText = '$' + totalInvested.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('est_returns').innerText = '$' + estReturns.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('total_value').innerText = '$' + futureValue.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); resultDiv.style.display = 'block'; }

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