Hong Kong Mortgage Rate Calculator

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Advanced SIP (Systematic Investment Plan) Calculator

Total Invested

$0

Estimated Returns

$0

Total Maturity Value

$0

function calculateSIP() { var P = parseFloat(document.getElementById('monthlyInvestment').value); var annualRate = parseFloat(document.getElementById('expectedReturn').value); var years = parseFloat(document.getElementById('investmentPeriod').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: M = P × ({[1 + i]^n – 1} / i) × (1 + i) var totalValue = P * ((Math.pow(1 + i, n) – 1) / i) * (1 + i); var totalInvested = P * n; var wealthGained = totalValue – totalInvested; document.getElementById('totalInvestedDisplay').innerText = "$" + totalInvested.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('wealthGainedDisplay').innerText = "$" + wealthGained.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('totalValueDisplay').innerText = "$" + totalValue.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('sip-results').style.display = 'block'; }

What is a SIP Calculator?

A Systematic Investment Plan (SIP) calculator is a smart financial tool that helps investors estimate the returns on their mutual fund investments made through the SIP route. Unlike a lump-sum investment, SIP involves investing a fixed amount of money at regular intervals (monthly, quarterly, or weekly), allowing you to benefit from rupee cost averaging and the power of compounding.

How the SIP Formula Works

The wealth creation through SIP is calculated using the Future Value of an Annuity formula. The calculator uses the following mathematical logic:

FV = P × [((1 + r)^n – 1) / r] × (1 + r)
  • P: The amount you invest every month.
  • r: Periodic rate of interest (Annual rate divided by 12 months).
  • n: Total number of payments (Years multiplied by 12).
  • FV: The final maturity amount you receive.

Key Benefits of Starting a SIP

  1. Disciplined Saving: SIP automates your savings, ensuring you invest before you spend on luxuries.
  2. Power of Compounding: By reinvesting the returns generated, your "money starts making money," which leads to exponential growth over long periods.
  3. No Need to Time the Market: Since you invest a fixed amount regularly, you buy more units when prices are low and fewer units when prices are high, averaging out your cost.
  4. Flexibility: You can start with as little as $50 or $100 per month and increase your investment as your income grows.

Realistic SIP Examples

Monthly Amount Return Rate Duration Final Wealth
$200 12% 10 Years $46,468
$500 15% 15 Years $338,432
$1,000 10% 20 Years $765,697

Frequently Asked Questions

Q: Is the return guaranteed in SIP?
A: No, SIP returns depend on the performance of the underlying mutual fund or asset class. The calculator provides an estimate based on your expected rate of return.

Q: Can I stop my SIP anytime?
A: Yes, most SIPs are flexible. You can pause, stop, or increase the amount without any heavy penalties in most open-ended mutual funds.

Q: What is the ideal duration for a SIP?
A: To truly see the magic of compounding, an investment horizon of 5 to 10 years or more is generally recommended.

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