SIP & Mutual Fund Return Calculator

Understanding SIP & Mutual Fund Compound Interest Formulas

A Systematic Investment Plan (SIP) allows investors to harness the power of compounding by investing small, regular sums periodically into mutual funds over a long-term horizon.

Key Formulas

• Monthly SIP Formula: FV = P × [{(1 + i)^n - 1} / i] × (1 + i)
  Where P = Monthly Amount, i = Monthly Return Rate (CAGR / 12 / 100), n = Total Months.
• Lump-Sum Compound Return: FV = P × (1 + r/100)^t
  Where r = Annual Return Rate %, t = Tenure in Years.
• Inflation Adjustment: Real Value = Future Value / (1 + Inflation Rate / 100)^Years

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