Recurring Deposit Interest Rate Calculator

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SIP Calculator (Systematic Investment Plan)

Total Invested

$0

Estimated Returns

$0

Total Value

$0

How Does a SIP Calculator Work?

A Systematic Investment Plan (SIP) calculator helps you estimate the wealth you can accumulate by making regular monthly investments into mutual funds or other financial instruments. Unlike a lump sum investment, a SIP allows you to benefit from rupee-cost averaging and the power of compounding.

The SIP Formula

This tool uses the standard formula for calculating SIP returns:

M = P × ({[1 + i]^n – 1} / i) × (1 + i)
  • M: Maturity amount (Future Value)
  • P: Monthly investment amount
  • i: Periodic rate of interest (Annual rate / 12 / 100)
  • n: Total number of monthly installments

Practical Example of SIP Growth

Imagine you decide to invest $500 every month for a period of 10 years. If the expected annual rate of return is 12%, here is how your money grows:

Metric Value
Monthly Investment $500
Total Invested over 10 Years $60,000
Estimated Capital Gains $56,170
Final Maturity Value $116,170

Key Benefits of Starting a SIP

  1. Disciplined Saving: SIP forces a regular saving habit, ensuring you pay yourself first before spending on lifestyle expenses.
  2. Lower Risk: By investing a fixed amount regularly, you buy more units when prices are low and fewer units when prices are high, averaging out your cost over time.
  3. Flexibility: You can start with as little as $10 or $50 per month and increase your investment as your income grows.
  4. Compounding Interest: The earlier you start, the more time your returns have to generate their own returns. Even a 5-year head start can result in hundreds of thousands of dollars in difference over a 30-year horizon.
function calculateSIP() { var p = parseFloat(document.getElementById('sipAmount').value); var r = parseFloat(document.getElementById('sipRate').value); var t = parseFloat(document.getElementById('sipYears').value); if (isNaN(p) || isNaN(r) || isNaN(t) || p <= 0 || r <= 0 || t <= 0) { alert("Please enter valid positive numbers in all fields."); return; } // i = monthly interest rate var i = (r / 100) / 12; // n = number of months var n = t * 12; // SIP Formula: M = P * [((1 + i)^n – 1) / i] * (1 + i) var totalValue = p * ((Math.pow(1 + i, n) – 1) / i) * (1 + i); var totalInvested = p * n; var estReturns = totalValue – totalInvested; document.getElementById('resInvested').innerText = "$" + totalInvested.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('resReturns').innerText = "$" + estReturns.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('resTotal').innerText = "$" + totalValue.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('sipResults').style.display = 'block'; }

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