1. What is this SIP Calculator?

This calculator shows the future value of a $30 Systematic Investment Plan (SIP) with a fixed 10% annual growth rate. It demonstrates the power of compounding over time.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( FV \) — Future Value
• \( P \) — Principal amount ($30)
• \( r \) — Annual growth rate (10%)
• \( n \) — Number of years

Explanation: The formula calculates how $30 grows each year at a constant 10% annual return, with returns being reinvested.

3. Importance of SIP Calculations

Details: Understanding compound growth helps investors appreciate how small, regular investments can grow significantly over time, especially with consistent returns.

4. Using the Calculator

Tips: Simply enter the number of years you plan to maintain this $30 SIP. The calculator assumes a fixed 10% annual return.

5. Frequently Asked Questions (FAQ)

Q1: Is 10% return guaranteed?
A: No, this is a hypothetical calculation. Actual returns may vary based on market conditions.

Q2: What if I invest more than $30?
A: This calculator is specifically for $30 investments. For other amounts, you would need to adjust the principal.

Q3: Are taxes considered in this calculation?
A: No, this is a pre-tax calculation. Actual returns may be lower after taxes.

Q4: How often is compounding applied?
A: The calculation assumes annual compounding.

Q5: Can I use this for other investment types?
A: While designed for SIPs, the same principle applies to any investment with compound growth.