How Does a SIP Calculator Work?
A Systematic Investment Plan (SIP) calculator is a powerful utility that helps you determine the estimated returns on your mutual fund investments. By investing a fixed amount every month, you benefit from "Rupee Cost Averaging" and the "Power of Compounding" over your chosen time horizon.
The SIP Calculation Formula
Our calculator uses the standard future value formula for an ordinary annuity, adjusted for investments made at the beginning of each period. The underlying formula is:
- FV = Future Value (Projected Wealth)
- P = Monthly Investment Amount
- r = Expected Rate of Return per month (Annual Rate ÷ 12 ÷ 100)
- n = Number of monthly installments (Years × 12)
Why Use the Finxpr SIP Calculator?
Unlike traditional finance blogs that are text-heavy and boring, Finxpr uses a dynamic, interactive architecture[cite: 3]. We provide a high-fidelity visual breakdown of your invested capital versus your estimated returns. This allows investors to instantly grasp how long-term consistency exponentially increases their net wealth without getting bogged down by complex mathematics.