Investment Calculator

SIP Formula & Information

SIP Formula:

M = P × ({[1 + i]n – 1} / i) × (1 + i)

Where:

  • M = Maturity amount you receive
  • P = Amount you invest at regular intervals
  • n = Number of payments you have made
  • i = Periodic rate of interest

Monthly Return Calculation:

Monthly Return = {(1 + Annual Return)1/12} – 1

Important: Never simply divide annual return by 12. For 12% annual return, the effective monthly return is ~0.95%, not 1%, because returns are compounded.

Example:

Investment: ₹1,000/month for 12 months at 12% annual return
Monthly rate (i) = (1 + 0.12)1/12 - 1 = 0.0095 (0.95%)
Maturity Amount = ₹12,766 approximately