Systematic Investment Plan (SIP) Calculator
Calculate the wealth gain and expected returns for your monthly SIP investment.
Investment Details
Annual Step-Up
Whats is SIP ?
A SIP (Systematic Investment Plan) calculator is a tool used in the context of mutual fund investments. It helps investors estimate the potential future value of their investments through systematic and regular contributions to a mutual fund scheme. SIP allows investors to invest a fixed amount at regular intervals.
The formula for calculating compound interest is as follows:
FV = P * [ (1+R)^T - 1 ] / R * (1+R)
Where:
- P: Monthly SIP Investment amount
- R: Monthly Interest in decimal (Annual Interest/(100*12)
- t: The number of SIP investment (Investment duration in Years * 12)
For example, if you invest $1,000 in every month for 5 years with an annual interest rate of 8%, the total amount you would have at the end of the 5-year period would be:
P = 1000, R = 8/(100*12) = 0.00666, t = 5*12 = 60
FV = 1,000 * [((1 + 0.00666)^(60) - 1)] / 0.00666 * (1 + 0.00666)
FV = $73,966.70
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