SIP & Lumpsum Calculator
Calculate the future value of your systematic investment plan (SIP) or one-time lumpsum investment. Plan your mutual fund investments and wealth creation journey with compound interest projections.
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Investment Calculator
How to Use the SIP & Lumpsum Calculator
Investing is one of the best ways to create long-term wealth, but trying to comprehend just how much your money will grow over time can get really confusing. Whether you invest a fixed amount of money every month through a SIP or make a one-time lumpsum investment, estimating the future value manually can become confusing due to compounding and different time periods. The SIP & Lumpsum Calculator eases the process. It further helps you calculate the future value of your investment. It does so based on the amount of contribution, expected return, and length of time you invest. By envisioning it clearly, it allows you to plan your financial goals with confidence and realism. This calculator suits both beginners who have just begun their investment and experienced investors looking to plan their long-term wealth creation.
How to Use
1. Choose Investment Type
Click on either SIP (if it is a monthly investment) or Lumpsum (if it is a single investment), as it involves a different compounding method.
2. Enter Investment Amount
For SIP, please select your monthly investment. For a lump-sum investment, please select your one-time investment amount.
3. Set Expected Annual Return
Input the expected rate of return based on the historical results or the expectations of the investments.
4. Choose Investment Duration
It’s required to define the period of investment in years. It’s beneficial to choose longer time periods because the concept of compounding works effectively in that
5. Optional Step-Up (SIP Only)
If applicable, enter the annual step-up percentage to automatically increase your SIP contributions based on your annual income increase.
6. Calculate Future Value
Click on the calculate button to get an instant display of the future value of your investment.
Key Formulas Used
Here, P is the monthly investment, r is the monthly rate of return, and n is the total number of months. This formula accounts for compounding on regular investments.
In this formula, P is the principal investment, r is the annual rate of return, and t is the number of years invested.
Benefits
- Estimates future value of SIP and Lumpsum investments
- Demonstrates the power of compounding clearly
- Supports step-up SIP planning
- Easy comparison between SIP and Lumpsum investing
- Helps set realistic financial goals
- Fast, accurate, and beginner-friendly
When & Where to Use
- Planning long-term wealth creation
- Retirement planning
- Child education investment planning
- Comparing SIP vs Lumpsum strategies
- Goal-based investment planning
- Understanding compounding growth
Who Should Use This Calculator
This is a perfect tool for professionals, self-employed individuals, students, new investors in mutual funds, and long-term investors. It’s especially helpful to anyone making disciplined investments or trying to analyze the power of regular investments versus lump sums.
Related Calculators
What is this?
SIP (Systematic Investment Plan) allows you to invest a fixed amount regularly, while Lumpsum is a one-time investment. Both calculators help you estimate future value through compound interest, considering your investment amount, expected returns, and investment duration.
How it works
SIP uses the formula: FV = P × {[(1 + r)^n - 1] / r} × (1 + r), where P is monthly investment, r is monthly rate, and n is total months. Lumpsum uses: FV = P × (1 + r)^t, where P is principal and t is years. The step-up feature in SIP allows annual investment increases.
Pro Tips
- Start early to maximize the power of compounding
- SIP works best for regular income earners with rupee-cost averaging
- Lumpsum investments work best when markets are low
- Consider a realistic return rate (10-12% for equity, 6-8% for debt)
- Diversify your investments across different asset classes
Frequently Asked Questions
What is a SIP (Systematic Investment Plan)?
A SIP allows you to invest a fixed amount at regular intervals (usually monthly) in mutual funds, helping you benefit from disciplined investing and rupee-cost averaging.
What is a Lumpsum investment?
A Lumpsum investment is a one-time investment where you invest a single amount and let it grow over time through compound interest.
Which is better: SIP or Lumpsum?
SIP is ideal for regular income earners and volatile markets, while Lumpsum works best when you have surplus funds and markets are relatively low.
What is the step-up SIP feature?
Step-up SIP allows you to increase your SIP amount annually by a fixed percentage, helping your investments grow faster as your income increases.
What return rate should I assume?
For equity mutual funds, a long-term return of 10–12% is commonly assumed. Debt funds typically return 6–8% annually.
What is CAGR shown in the results?
CAGR (Compound Annual Growth Rate) shows the effective annual growth rate of your investment over the entire period.
Are the results guaranteed?
No. The calculator provides estimates based on assumed return rates. Actual mutual fund returns depend on market performance.