Shipping Costs Usps Calculator

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Professional SIP Calculator

Total Invested

Wealth Gained

Total Value

function calculateSIP() { var P = parseFloat(document.getElementById('monthlyAmount').value); var annualRate = parseFloat(document.getElementById('annualRate').value); var n = parseFloat(document.getElementById('years').value) * 12; if (isNaN(P) || isNaN(annualRate) || isNaN(n) || P <= 0 || annualRate <= 0 || n <= 0) { alert('Please enter valid positive numbers for all fields.'); return; } var i = (annualRate / 100) / 12; // Formula: FV = P × [({(1 + i)^n} – 1) / i] × (1 + i) var futureValue = P * ((Math.pow(1 + i, n) – 1) / i) * (1 + i); var investedAmount = P * n; var returns = futureValue – investedAmount; document.getElementById('totalInvested').innerText = '$' + investedAmount.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('wealthGained').innerText = '$' + returns.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('totalValue').innerText = '$' + futureValue.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0}); document.getElementById('sip-results').style.display = 'block'; }

Understanding Your SIP Investment Strategy

A Systematic Investment Plan (SIP) is a disciplined way to invest in mutual funds where you contribute a fixed amount at regular intervals (usually monthly). Unlike lump-sum investments, SIPs allow you to navigate market volatility through the power of rupee-cost averaging.

How the SIP Calculation Works

The math behind an SIP is based on the compound interest formula, adjusted for monthly contributions. The formula used in this calculator is:

FV = P × [({(1 + i)n} – 1) / i] × (1 + i)
  • P: Your Monthly Investment Amount
  • i: Periodic Rate of Interest (Annual Rate / 12 / 100)
  • n: Total Number of Payments (Years × 12)

Why Use an SIP Calculator?

Planning for long-term goals like retirement, a child's education, or a home purchase requires precision. Here is why investors use this tool:

  1. Goal Clarity: Determine exactly how much you need to save monthly to reach a specific target.
  2. Power of Compounding: See how staying invested for an extra 5 years can potentially double your wealth.
  3. Risk Management: By investing monthly, you buy more units when prices are low and fewer when prices are high.

Real-World Example

If you invest $500 per month for 15 years at an expected return of 12%:

  • Total Invested: $90,000
  • Wealth Gained: $162,295
  • Final Maturity Value: $252,295

This demonstrates how your "Wealth Gained" can actually exceed your "Total Invested" over long horizons due to the compounding effect on your monthly contributions.

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