The SIP (Systematic Investment Plan) calculator is typically based on compound interest formulas to calculate the future value of investments made at regular intervals with a fixed rate of return. 

SIP encourages regular investments, instilling discipline in your financial habits.

Future Value of SIP (FV):

The future value of SIP represents the total amount accumulated at the end of the investment period. It’s calculated using the formula for compound interest.

FV=P×(r(1+r)n−1​)×(1+r)

$FV$ = Future Value of SIP

$P$ = Monthly investment amount

$r$ = Monthly interest rate (annual interest rate / 12 months)

$n$ = Total number of periods (investment tenure in years * 12)

Monthly Interest Rate (r):

The monthly interest rate is derived from the annual interest rate.

r=Annual Rate/(12*100)​

$r$ = Monthly interest rate

$AnnualRate$ = Annual interest rate

Total Investment Amount (A):

The total investment amount is simply the monthly investment amount multiplied by the total number of periods.

$A=P\times n$

$A$ = Total Investment Amount

$P$ = Monthly investment amount

$n$ = Total number of periods (investment tenure in years * 12)