The SIP calculator will generate a result using the above information and the following formula:
Amount invested × ({[1 + Periodic rate of interest] Total number payments – 1} / Periodic rate of interest) × (1 + Periodic rate of interest).
Example:
You are investing ৳5,000 per month for 24 months at a periodic rate of return 12%.
The rate of return per month would be 12%/12 = 1/100=0.01,
৳5,000 x (((1 + 0.01)^24 – 1) / 0.01) × (1 + 0.01) = ৳1,36,215.
After 2 years, you will get approximately ৳1,36,215.
However, do keep in mind that the rate of interest on Mutual Funds change as per market conditions. It may increase or decrease, which may impact the estimated returns.
