SIP Calculator Guide: Plan Your Investments

SIP Calculation Formula

// SIP Future Value Calculation
// Formula: FV = P × [((1 + r)^n - 1) / r] × (1 + r)
// Where:
// FV = Future Value
// P = Monthly Investment Amount
// r = Monthly Return Rate (Annual Rate / 12)
// n = Number of Months

function calculateSIP(monthlyInvestment, annualReturn, years) {
  const months = years * 12;
  const monthlyRate = annualReturn / 100 / 12;
  
  // Future value formula
  const futureValue = monthlyInvestment * 
    (((Math.pow(1 + monthlyRate, months) - 1) / monthlyRate) * 
     (1 + monthlyRate));
  
  const totalInvested = monthlyInvestment * months;
  const returns = futureValue - totalInvested;
  
  return {
    futureValue: Math.round(futureValue),
    totalInvested: Math.round(totalInvested),
    returns: Math.round(returns),
    returnPercentage: ((returns / totalInvested) * 100).toFixed(2)
  };
}

// Example: ₹5,000 monthly for 10 years at 12% annual return
const result = calculateSIP(5000, 12, 10);
console.log(result);
// {
//   futureValue: 1150191,
//   totalInvested: 600000,
//   returns: 550191,
//   returnPercentage: "91.70"
// }

Comparing Different SIP Scenarios

// Compare different investment amounts
const scenarios = [
  { amount: 5000, years: 10, return: 12 },
  { amount: 10000, years: 10, return: 12 },
  { amount: 5000, years: 15, return: 12 },
  { amount: 5000, years: 10, return: 15 }
];

scenarios.forEach(scenario => {
  const result = calculateSIP(scenario.amount, scenario.return, scenario.years);
  console.log(`₹${scenario.amount}/month for ${scenario.years} years at ${scenario.return}%:`);
  console.log(`Future Value: ₹${result.futureValue.toLocaleString()}`);
  console.log(`Returns: ₹${result.returns.toLocaleString()} (${result.returnPercentage}%)`);
  console.log('---');
});