💰 SIP Investment Calculator: Plan Your Wealth
A Systematic Investment Plan (SIP) calculator helps you estimate the future value of your monthly investments. Input your monthly SIP amount, the duration of your investment, the expected annual return rate, and the compounding frequency to project your wealth growth and potential total returns. Start planning your financial future today!
🎯 Investment Projection Results
Total Invested Capital (A)
Estimated Maturity Value (M)
Total Wealth Gained (M - A)
📊 Visual Analysis
📜 Year-wise Investment Summary
| Year | Total Invested | Interest Earned | Cumulative Value |
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In-Depth Guide to SIP Investment Planning
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❓ Frequently Asked Questions (FAQ)
How is the SIP maturity value calculated?
The calculation uses the Future Value of Annuity formula. It considers the monthly investment, the compounding frequency, the annual return rate, and the total duration. The formula is $M = P \times \frac{((1 + i)^n - 1)}{i} \times (1 + i_m)$, where $P$ is the periodic installment, $i$ is the periodic interest rate, and $n$ is the number of periods.
What is the difference between monthly and annual compounding?
Compounding frequency dictates how often the earned interest is reinvested back into the principal. More frequent compounding (like monthly) generally leads to a slightly higher maturity value due to earning interest on the reinvested interest sooner.
What is a realistic expected annual return rate for a SIP?
While past returns are not indicative of future performance, long-term SIPs in diversified equity funds in major markets have historically delivered returns between 10% and 15%. However, a conservative estimate should be used for financial planning, and this rate can vary significantly based on market conditions and risk tolerance.
Can I change the SIP amount or duration after starting?
Yes, most SIP plans offer flexibility. You can typically step up (increase) or step down (decrease) your monthly installment, or pause/stop the SIP after the minimum lock-in period, if any. Always check the terms with your financial institution.
How does inflation affect the SIP returns?
The maturity value calculated is the nominal return. To find the *real* return, you must adjust the maturity value for inflation. A 12% return in a 6% inflation environment means the real rate of return is only about 6%.
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