RDCalculator.site

This calculator is useful for calculating returns from a mutual fund using the systematic investment plan (SIP) route. Simply enter the SIP amount, select daily/ monthly/ yearly SIP cycle to calculate the amount accumulated over the investment tenure.

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Systematic Investment Plan (SIP) is an investment strategy where you invest a fixed amount every month in investment instruments like mutual funds. Investing in mutual fund using SIPs is similar to savings in banks using recurring deposit; The bank returns are, however, guaranteed whereas mutual fund returns are not.

The formula for SIP return calculation is based on the formula for future value of annuity-due.

FV = P × ((1 + i)^{n} - 1) / i) × (1 + i)

Where,

FV = Future value

P = Amount invested at the start of every payment interval

n = Number of payments

i = Periodic interest rate

r = Expected return rate in % per annum

For a monthly SIP payment *P* for a period of *n* months:

Maturity amount = P × ((1 + i)^{n} - 1) / i) × (1 + i)

where,

i = r / 100 / 12

Disclaimer:- The content of this website does not constitute financial advice and is solely meant for information purpose. The calculations are accurate as per the prescribed formula.