Unlock your investment potential with our comprehensive SIP and Lumpsum Calculator. Easily estimate the future value of your Systematic Investment Plan (SIP) contributions and one-time lumpsum investments. Understand how the power of compounding works to grow your wealth over time and help you achieve your financial aspirations with effective planning.
Formula:
The calculation for future value involves compounding interest over time. Here's a simplified representation:
- For Lumpsum Investment:
FV = P * (1 + r)^t - For SIP Investment:
FV = P_sip * [((1 + r_m)^n - 1) / r_m] * (1 + r_m)(assuming monthly contributions at the beginning of the period)
Where:
FV= Future Value (Maturity Amount)P= Lumpsum Principal Investment AmountP_sip= Monthly SIP Investment Amountr= Annual Rate of Return (decimal)r_m= Monthly Rate of Return (r / 12)t= Investment Period in Yearsn= Total Number of Months (t * 12)