Sip Return Percentage Calculator

SIP Return Percentage Calculator

Calculation Results:

Total Invested Amount: 0.00

Absolute Gain/Loss: 0.00

Absolute Return Percentage: 0.00%

function calculateSIPReturn() { var monthlyInvestmentAmount = parseFloat(document.getElementById('monthlyInvestmentAmount').value); var investmentDurationMonths = parseFloat(document.getElementById('investmentDurationMonths').value); var currentPortfolioValue = parseFloat(document.getElementById('currentPortfolioValue').value); var totalInvestedOutput = document.getElementById('totalInvestedOutput'); var absoluteReturnOutput = document.getElementById('absoluteReturnOutput'); var absoluteReturnPercentageOutput = document.getElementById('absoluteReturnPercentageOutput'); var sipResultDiv = document.getElementById('sipResult'); // Input validation if (isNaN(monthlyInvestmentAmount) || monthlyInvestmentAmount <= 0) { totalInvestedOutput.textContent = 'Invalid Input'; absoluteReturnOutput.textContent = 'Invalid Input'; absoluteReturnPercentageOutput.textContent = 'Invalid Input'; sipResultDiv.style.borderColor = '#dc3545'; // Red border for error return; } if (isNaN(investmentDurationMonths) || investmentDurationMonths <= 0) { totalInvestedOutput.textContent = 'Invalid Input'; absoluteReturnOutput.textContent = 'Invalid Input'; absoluteReturnPercentageOutput.textContent = 'Invalid Input'; sipResultDiv.style.borderColor = '#dc3545'; return; } if (isNaN(currentPortfolioValue) || currentPortfolioValue 0) ? (absoluteReturn / totalInvestedAmount) * 100 : 0; // Display results totalInvestedOutput.textContent = totalInvestedAmount.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); absoluteReturnOutput.textContent = absoluteReturn.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); absoluteReturnPercentageOutput.textContent = absoluteReturnPercentage.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + '%'; sipResultDiv.style.borderColor = '#dee2e6'; // Reset border color on success } // Calculate on page load with default values window.onload = calculateSIPReturn;

Understanding Your SIP Returns

A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly (e.g., monthly, quarterly) into a mutual fund or other investment scheme. It's a popular strategy for long-term wealth creation, leveraging the power of compounding and rupee cost averaging.

How the SIP Return Percentage Calculator Works

This calculator helps you quickly understand the absolute performance of your SIP investment. It takes three key inputs:

1. Monthly Investment Amount: The fixed sum you invest each month.
2. Investment Duration (Months): The total number of months you have been investing or plan to invest.
3. Current Portfolio Value: The current market value of your total investment.

Based on these inputs, the calculator provides the following outputs:

• Total Invested Amount: This is the cumulative sum of all your monthly investments over the specified duration. It's calculated as:
  Monthly Investment Amount × Investment Duration (Months)
• Absolute Gain/Loss: This indicates the total profit or loss you have made on your investment. It's calculated as:
  Current Portfolio Value - Total Invested Amount
• Absolute Return Percentage: This is the percentage return on your total invested capital. It shows how much your investment has grown (or shrunk) relative to the money you put in. It's calculated as:
  (Absolute Gain/Loss / Total Invested Amount) × 100

Why Absolute Return Percentage Matters

The absolute return percentage gives you a straightforward view of your investment's performance over its entire tenure. While useful for a quick snapshot, it doesn't account for the time value of money or the staggered nature of SIP investments. For a more accurate annualized return that considers the timing of each investment, financial professionals often use the Extended Internal Rate of Return (XIRR). However, calculating XIRR requires more complex data (each investment date and amount) and iterative methods, which are beyond the scope of this simple calculator.

Example Scenario:

Let's say you started a SIP with the following details:

• Monthly Investment Amount: ₹5,000
• Investment Duration: 5 years (60 months)
• Current Portfolio Value: ₹3,50,000

Using the calculator:

• Total Invested Amount: ₹5,000 × 60 = ₹3,00,000
• Absolute Gain/Loss: ₹3,50,000 – ₹3,00,000 = ₹50,000
• Absolute Return Percentage: (₹50,000 / ₹3,00,000) × 100 = 16.67%

This means your investment has grown by 16.67% over the 5-year period.

Use this calculator to regularly track the simple performance of your SIPs and make informed decisions about your investment strategy.