Sbi Interest Rate Calculator for Home Loan

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SIP (Systematic Investment Plan) Calculator

Estimate your future wealth and maturity value from mutual fund investments.

Invested Amount: $0
Estimated Returns: $0
Total Value: $0
function calculateSIPValue() { var monthlyInvestment = parseFloat(document.getElementById('monthlyAmount').value); var annualRate = parseFloat(document.getElementById('expectedRate').value); var years = parseFloat(document.getElementById('timePeriod').value); if (isNaN(monthlyInvestment) || isNaN(annualRate) || isNaN(years) || monthlyInvestment <= 0 || annualRate <= 0 || years <= 0) { alert("Please enter valid positive numbers for all fields."); return; } var monthlyRate = annualRate / 12 / 100; var months = years * 12; // SIP Formula: M = P × ({[1 + i]^n – 1} / i) × (1 + i) var maturityValue = monthlyInvestment * (Math.pow(1 + monthlyRate, months) – 1) / monthlyRate * (1 + monthlyRate); var totalInvested = monthlyInvestment * months; var estimatedReturns = maturityValue – totalInvested; document.getElementById('totalInvested').innerText = "$" + totalInvested.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('estReturns').innerText = "$" + estimatedReturns.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalValue').innerText = "$" + maturityValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('sipResults').style.display = 'block'; }

What is a Systematic Investment Plan (SIP)?

A Systematic Investment Plan (SIP) is a financial vehicle offered by mutual funds that allows you to invest small amounts of money at regular intervals—monthly, quarterly, or semi-annually—instead of a one-time lump sum. This method encourages disciplined investing and helps in wealth creation over the long term through the power of compounding.

How the SIP Calculator Works

The SIP calculator uses a formula to estimate the future value of your monthly contributions based on an expected annual growth rate. Unlike a simple interest calculation, SIP returns are calculated using Compound Interest. Since you are adding money every month, the calculation accounts for the duration each specific installment is held in the market.

The SIP Formula:

FV = P × [ ( (1 + i)n – 1 ) / i ] × (1 + i)
  • P: Monthly Investment Amount
  • i: Monthly Rate of Return (Annual Rate / 12 / 100)
  • n: Total Number of Months
  • FV: Future Value (Maturity Amount)

Example: Power of Compounding

Imagine you start an SIP with $500 per month for a period of 15 years. If the mutual fund delivers an average annual return of 12%:

  • Total Amount Invested: $90,000
  • Estimated Returns: $162,287
  • Total Value after 15 years: $252,287

As seen in this example, the returns earned are significantly higher than the principal invested, thanks to the compounding effect where your returns earn more returns over time.

Key Benefits of SIP

  1. Rupee Cost Averaging: You buy more units when the market is low and fewer units when the market is high, averaging out the cost of your investment.
  2. Disciplined Saving: Automating your investments ensures you save before you spend.
  3. Lower Minimums: Most SIPs allow you to start with as little as $50 or $100 per month.
  4. Flexibility: You can pause, stop, or increase your SIP amounts at any time based on your financial situation.
Disclaimer: Mutual fund investments are subject to market risks. The returns shown by this calculator are estimates based on the inputs provided and do not guarantee future performance.

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