SIP Calculator

A Systematic Investment Plan (SIP) Calculator helps you estimate the wealth you can build by investing small amounts regularly in mutual funds or other investment instruments. It’s a powerful tool for disciplined investors.

🤔 What is SIP?

SIP is a method of investing a fixed amount periodically (monthly or quarterly) in a mutual fund scheme. This approach helps you accumulate wealth over time by leveraging the power of compounding and market growth.

🛠️ How Does the Calculator Work?

The SIP Calculator estimates your investment value at the end of a specified period based on:

• 💰 **Monthly Investment Amount**: The fixed amount invested.
• 📊 **Expected Rate of Return**: Annual return on the investment.
• ⏳ **Investment Period**: The total duration of investment in years.

The formula for SIP calculation is:

FV = P × [(1 + r)ⁿ - 1] ÷ r × (1 + r)

• **FV**: Future Value, **P**: Monthly Investment, **r**: Rate of return (annual ÷ 12), **n**: Total number of months.

🌟 Benefits of Using a SIP Calculator

• ✅ Estimates future wealth accurately.
• ✅ Helps visualize the impact of regular investing and compounding.
• ✅ Assists in planning long-term financial goals.