SIP calculator ,Know your Amount- Moneyfinx

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.

$F V = P \times (r ( 1 + r ) ^{n} - 1) \times (1 + r)$

$F V$ = 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.

$r = A nn u a l R a t e/(12*100)$

$r$ = Monthly interest rate

$A nn u a l R a t e$ = 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)

Sip calculator