SIP Calculator

Understanding SIP

A SIP calculator helps you determine the future value of regular investments over a given period, considering an expected rate of return.

Key Concepts:

• Monthly Investment: The amount invested regularly each month.
• Investment Period: The total duration over which you will invest, usually expressed in years.
• Expected Return: The annual rate of return you anticipate from your investments, typically represented as a percentage.

How it Works:

The calculator estimates the future value of your monthly investments, factoring in the compounded returns over the investment period.

Calculation Formula:

Future Value = P × ((1 + r)^n - 1) / r × (1 + r)

Where:

• P: Monthly investment.
• r: Monthly return rate (Annual Return / 12).
• n: Total number of months (Years * 12).