SIP Calculator

A SIP (Systematic Investment Plan) calculator is a financial tool that helps investors estimate the potential returns on their investments made through SIPs. SIPs are a popular investment method where individuals invest a fixed amount regularly at predefined intervals in mutual funds or other investment schemes.

A SIP calculator takes into account various parameters such as the monthly investment amount, the investment tenure in years and the expected rate of return. By inputting these details, the calculator provides an estimate of the maturity amount or the value of the investment at the end of the specified period.

The calculation performed by a SIP calculator is based on the concept of compounding. It considers the power of compounding to generate wealth over time by reinvesting the returns earned on investments. The compounding effect allows investors to earn returns not just on the principal amount but also on the accumulated returns, resulting in exponential growth.