Sip Calculator

How to Use the SIP Investment Calculator

The SIP Investment Calculator is a tool designed to help you estimate the returns on your Systematic Investment Plan (SIP) investments. Follow this step-by-step guide to effectively use the calculator and get accurate results.

Step 1: Input the Monthly Investment Amount

• Label: Monthly Investment Amount
• Placeholder: Enter the amount you plan to invest monthly.
• Validation: The value must be between $100 and $1,000,000, in increments of $100.

Step 2: Enter the Expected Annual Return Rate

• Label: Expected Annual Return Rate (%)
• Placeholder: Enter the percentage rate you expect your investment to return annually.
• Validation: The rate must be between 1% and 30%, in increments of 0.1%.

Step 3: Define the Investment Time Period

• Label: Investment Time Period (Years)
• Placeholder: Enter the number of years you plan to keep your investment.
• Validation: The duration must be between 1 and 50 years, in increments of 1 year.

Step 4: Select the Investment Frequency

• Label: Investment Frequency
• Options:
  • Monthly (12 times a year)
  • Quarterly (4 times a year)
  • Semi-Annually (2 times a year)
  • Annually (once a year)
• Validation: Selection is required.

Step 5: View the Calculated Results

• Total Amount Invested: This is the total sum of money invested, calculated by the formula:
  monthlyInvestment * timePeriod * investmentFrequency, and displayed in currency format.
• Estimated Returns: This is the estimated growth in your investment over the specified period. It is computed using the following logic:
  (monthlyInvestment * (pow(1 + expectedReturnRate/(100 * investmentFrequency), timePeriod * investmentFrequency) – 1) * (1 + expectedReturnRate/(100 * investmentFrequency))/(expectedReturnRate/(100 * investmentFrequency))) – (monthlyInvestment * timePeriod * investmentFrequency). The result is displayed in a currency format.
• Total Expected Value: The total value of your investment at the end of the period, using:
  monthlyInvestment * (pow(1 + expectedReturnRate/(100 * investmentFrequency), timePeriod * investmentFrequency) – 1) * (1 + expectedReturnRate/(100 * investmentFrequency))/(expectedReturnRate/(100 * investmentFrequency)). It is also displayed in currency format.
• Effective Annual Return Rate: The effective rate of return you earn annually over the investment period, calculated by:
  ((totalValue/totalInvestment)^(1/timePeriod) – 1) * 100. This is shown as a percentage.

By following these steps, you will be able to effectively use the SIP Investment Calculator and make informed investment decisions.