Sip Calculator Using Python

Hello Guys Here We Are Going To Create Sip Calculator Using Python

Sip Calculator Using Python Program

The Python Sip(Systematic Investment Plan) Calculator Using Python Inbuilt Functions.  This version will calculate the future value of monthly investments over a given period at a specified annual interest rate, assuming monthly compounding.

The formula to calculate the Sip

• SIP Formula

           A=P×r/n(1+r/n)nt−1

• $A$ = the amount at the end of the investment period
• $P$ = the SIP amount (investment per installment)
• $r$ = annual interest rate (in decimal)
• $n$ = number of compounding periods per year (for monthly SIP, $n$ = 12)
• $t$ = number of years

Here we are going to start the code

• Def simple_sip_calculator

Simple Sip Calculator function in Python that calculates the future value of a Systematic Investment Plan (SIP) based on regular monthly investments, an expected annual interest rate, and the investment period in years

def simple_sip_calculator(monthly_investment, annual_interest_rate, years):
    """
    Calculate the future value of SIP (Systematic Investment Plan) investments.

• Parameters:
• Monthly_Investment : fixed amount you invest every month.
• Annual_interest_rate :expected annual interest rate (in percentage)
• years : duration of the investment in years

Parameters:
    monthly_investment (float): The amount invested each month.
    annual_interest_rate (float): The annual interest rate (in percentage).
    years (int): The investment period in years.

    Returns:
    float: The future value of the SIP investments.
    """

• Interest Rate Conversion

Converts the annual interest rate from percentage to decimal form

r = annual_interest_rate / 100

• Compounding Periods

Sets the number of compounding periods per year to 12 (monthly compounding)

n = 12

• Total Number of Installments

Calculates the total number of monthly installments over the investment period

total_installments = years * n

• Future Value Calculation

Uses the SIP formula to calculate the future value of the investments

future_value = monthly_investment * ((1 + r / n) ** total_installments - 1) / (r / n) * (1 + r / n)

• Return Value

Returns the calculated future value of the SIP investments

return future_value

Here We See  how the simple sip calculator function.

Here We Input  All Parameters

monthly_investment = 1000  
annual_interest_rate = 12 
years = 10  

future_value = simple_sip_calculator(monthly_investment, annual_interest_rate, years)

print(f"The future value of the SIP investment is: {future_value:.2f}")

output:
The future value of the SIP investment is: 232243.21