Estimate the wealth created through your Systematic Investment Plan
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Estimated Returns:0
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Understanding Systematic Investment Plans (SIP)
A Systematic Investment Plan (SIP) is a disciplined method of investing a fixed amount of money at regular intervals in mutual funds. Unlike a lumpsum investment, where you invest a large amount at once, a SIP allows you to participate in the markets with smaller, manageable amounts.
How Does a SIP Calculator Work?
The SIP calculator uses the formula for the future value of an ordinary annuity to estimate your wealth growth. It assumes that the investment is made at the beginning of every month. The formula used is:
Rupee Cost Averaging: You buy more units when prices are low and fewer units when prices are high, averaging out the cost over time.
Power of Compounding: Small investments made over a long period generate significant returns as you earn interest on your interest.
Financial Discipline: SIPs automate your savings, ensuring you stay consistent with your long-term financial goals.
Example Projections
Monthly SIP
Period (Years)
Expected Return
Final Value
2,000
10
12%
4,64,678
5,000
15
12%
25,22,880
10,000
20
12%
99,91,479
Why Tenure Matters More Than Amount
In SIP investing, time is your greatest ally. Starting five years earlier can often lead to a much larger final corpus than doubling your investment amount later in life. This calculator helps you visualize how even small monthly contributions can grow into substantial wealth over 15 to 20 years.
function calculateSIP() {
var monthlyInvest = parseFloat(document.getElementById("monthlyInvestment").value);
var annualRate = parseFloat(document.getElementById("annualReturn").value);
var years = parseFloat(document.getElementById("investmentTenure").value);
if (isNaN(monthlyInvest) || isNaN(annualRate) || isNaN(years) || monthlyInvest <= 0 || annualRate <= 0 || years <= 0) {
alert("Please enter valid positive numbers in all fields.");
return;
}
// Monthly interest rate
var r = annualRate / 12 / 100;
// Total months
var n = years * 12;
// SIP Formula: FV = P × ({[1 + r]^n – 1} / r) × (1 + r)
// We multiply by (1 + r) because SIP installments are typically at the start of the period
var totalValue = monthlyInvest * ((Math.pow(1 + r, n) – 1) / r) * (1 + r);
var totalInvested = monthlyInvest * n;
var estReturns = totalValue – totalInvested;
// Display Results
document.getElementById("resTotalInvested").innerText = formatCurrency(totalInvested);
document.getElementById("resReturns").innerText = formatCurrency(estReturns);
document.getElementById("resTotalValue").innerText = formatCurrency(totalValue);
document.getElementById("sipResults").style.display = "block";
}
function formatCurrency(num) {
return num.toLocaleString('en-US', {
maximumFractionDigits: 0,
minimumFractionDigits: 0
});
}