Sip Mutual Fund Calculator

by
SIP Mutual Fund Calculator body { font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif; background-color: #f8f9fa; color: #333; margin: 0; padding: 20px; display: flex; justify-content: center; align-items: flex-start; min-height: 100vh; } .loan-calc-container { background-color: #ffffff; padding: 30px; border-radius: 8px; box-shadow: 0 4px 15px rgba(0, 0, 0, 0.1); width: 100%; max-width: 700px; display: flex; flex-direction: column; align-items: center; } h1, h2 { color: #004a99; margin-bottom: 20px; text-align: center; } .input-group { margin-bottom: 20px; width: 100%; display: flex; flex-direction: column; align-items: flex-start; } .input-group label { font-weight: bold; margin-bottom: 8px; color: #004a99; display: block; } .input-group input[type="number"], .input-group input[type="text"], .input-group select { width: calc(100% – 20px); padding: 12px 10px; border: 1px solid #ced4da; border-radius: 5px; font-size: 1rem; box-sizing: border-box; transition: border-color 0.3s ease-in-out; } .input-group input[type="number"]:focus, .input-group input[type="text"]:focus, .input-group select:focus { border-color: #007bff; outline: none; box-shadow: 0 0 0 0.2rem rgba(0, 123, 255, 0.25); } button { background-color: #28a745; color: white; padding: 12px 25px; border: none; border-radius: 5px; cursor: pointer; font-size: 1.1rem; transition: background-color 0.3s ease-in-out, transform 0.2s ease-in-out; margin-top: 10px; } button:hover { background-color: #218838; transform: translateY(-2px); } button:active { transform: translateY(0); } #result { margin-top: 30px; padding: 25px; background-color: #e9ecef; border-radius: 8px; width: 100%; text-align: center; border: 1px solid #dee2e6; box-shadow: inset 0 1px 3px rgba(0,0,0,0.05); } #result h3 { color: #004a99; margin-bottom: 15px; font-size: 1.3rem; } #result p { font-size: 1.8rem; font-weight: bold; color: #28a745; } .article-section { margin-top: 40px; padding-top: 30px; border-top: 1px solid #e0e0e0; width: 100%; text-align: left; } .article-section h2 { text-align: left; margin-bottom: 15px; } .article-section p, .article-section ul, .article-section li { line-height: 1.7; margin-bottom: 15px; font-size: 1rem; color: #555; } .article-section li { margin-left: 20px; } .article-section code { background-color: #e9ecef; padding: 2px 5px; border-radius: 3px; font-family: Consolas, Monaco, 'Andale Mono', 'Ubuntu Mono', monospace; } @media (max-width: 600px) { .loan-calc-container { padding: 20px; } button { width: 100%; } #result p { font-size: 1.5rem; } }

SIP Mutual Fund Calculator

Your Investment Projection

Understanding SIP and How This Calculator Works

A Systematic Investment Plan (SIP) is a disciplined way to invest in mutual funds. Instead of investing a lump sum, you invest a fixed amount at regular intervals, typically monthly. This method helps in averaging your purchase cost over time, a strategy known as Rupee Cost Averaging, which can mitigate the risks associated with market volatility.

Key Benefits of SIP:

  • Disciplined Investing: Encourages regular saving and investing habits.
  • Rupee Cost Averaging: Your investment amount buys more units when the market is low and fewer units when the market is high, potentially lowering your average cost per unit.
  • Power of Compounding: Over the long term, the returns earned on your investments can themselves earn returns, leading to significant wealth creation.
  • Flexibility: You can start with small amounts and increase them as your income grows.

How the SIP Mutual Fund Calculator Works:

This calculator uses the future value of an annuity formula to estimate the total corpus you can build through SIP. The formula accounts for your regular investment, the duration of your investment, and the expected rate of return.

The core formula used is:

FV = P * [((1 + r)^n - 1) / r] * (1 + r)

Where:

  • FV = Future Value of the investment (the total amount you'll have at the end).
  • P = Periodic Investment amount (your monthly SIP amount).
  • r = Periodic Interest Rate. This is calculated by dividing the expected annual return rate by 12 (since investments are monthly). So, r = (Annual Return Rate / 100) / 12.
  • n = Total number of periods (investment duration in years multiplied by 12 to get the total number of months). So, n = Investment Duration (Years) * 12.

The calculator first calculates the total number of months (periods) and the monthly interest rate from your inputs. Then, it applies the formula to find the future value. It also breaks down the total returns into your principal investment and the earned interest.

Example Calculation:

Let's say you invest ₹5,000 per month for 10 years, expecting an annual return of 12%.

  • Monthly Investment (P): ₹5,000
  • Investment Duration: 10 years
  • Expected Annual Return: 12%

Calculations:

  • Monthly Interest Rate (r): (12% / 100) / 12 = 0.12 / 12 = 0.01
  • Total Number of Months (n): 10 years * 12 months/year = 120 months

Applying the formula:

FV = 5000 * [((1 + 0.01)^120 - 1) / 0.01] * (1 + 0.01)

FV = 5000 * [(3.30038689 - 1) / 0.01] * 1.01

FV = 5000 * [0.0230038689 / 0.01] * 1.01

FV = 5000 * 3.30038689 * 1.01

FV ≈ ₹16,66,670

Total Amount Invested: ₹5,000/month * 120 months = ₹6,00,000

Total Interest Earned: ₹16,66,670 – ₹6,00,000 = ₹10,66,670

This calculator helps you visualize the potential growth of your investments through SIP, making it a valuable tool for financial planning.

function calculateSIP() { var monthlyInvestment = parseFloat(document.getElementById("monthlyInvestment").value); var investmentDuration = parseFloat(document.getElementById("investmentDuration").value); var expectedAnnualReturn = parseFloat(document.getElementById("expectedAnnualReturn").value); // Input validation if (isNaN(monthlyInvestment) || monthlyInvestment <= 0) { alert("Please enter a valid monthly investment amount."); return; } if (isNaN(investmentDuration) || investmentDuration <= 0) { alert("Please enter a valid investment duration in years."); return; } if (isNaN(expectedAnnualReturn) || expectedAnnualReturn 0) { futureValue = monthlyInvestment * (Math.pow(1 + monthlyRate, numberOfMonths) – 1) / monthlyRate * (1 + monthlyRate); } else { // Handle case where annual return is 0% futureValue = monthlyInvestment * numberOfMonths; } var totalInvested = monthlyInvestment * numberOfMonths; var totalInterest = futureValue – totalInvested; document.getElementById("totalAmount").innerText = "Estimated Corpus: \u20B9" + futureValue.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,'); document.getElementById("totalInterest").innerText = "Total Interest Earned: \u20B9" + totalInterest.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,'); document.getElementById("result").style.display = "block"; }

Leave a Comment