How SIP Returns Are Calculated — Formula, XIRR & Real Examples
SIP returns are calculated using the future value of annuity formula — FV = P × [((1+i)^n – 1)/i] × (1+i) — where each monthly instalment compounds at a different rate based on how long it stays invested. For real-world accuracy, platforms like Groww and Zerodha use XIRR instead of CAGR, because each SIP payment […]