About SIP & Lump Sum Calculator
This calculator helps you estimate the future value of both Systematic Investment Plan (SIP) and Lump Sum investments in mutual funds. SIP is a disciplined investment approach where you invest a fixed amount at regular intervals (daily, weekly, monthly, quarterly, or yearly). Lump Sum is a one-time investment where you invest a large amount at once. Both approaches benefit from compound interest, helping you plan your long-term financial goals.
Use the toggle buttons to switch between SIP and Lump Sum modes. Use draggable sliders to adjust your investment parameters and see real-time results in the pie chart. The pie chart shows the breakdown of your total investment value, displaying invested amount versus estimated returns. No sign-up required.
How to use this calculator
For SIP Mode: Select SIP mode, choose your SIP frequency (Daily, Weekly, Monthly, Quarterly, or Yearly), use the slider to set your investment amount per period (₹1 to ₹10,000), set expected annual return rate (0% to 30%), and investment duration (0.5 to 35 years). For Lump Sum Mode: Select Lump Sum mode, use the slider to set your one-time investment amount (₹10K to ₹1Cr), set expected annual return rate, and investment duration. Watch the pie chart update in real-time as you adjust the values. The calculator automatically displays your investment summary with total invested amount, estimated returns, total value, and a projection table.
SIP vs Lump Sum
SIP Advantages: Disciplined investing through regular contributions, rupee cost averaging (buying more units when prices are low), easier on budget with smaller amounts, builds investment habit. Lump Sum Advantages: Immediate full investment, potentially higher returns if invested at the right time, fewer transactions, simpler to manage. Which to Choose: SIP is better for regular income earners who want disciplined investing. Lump Sum is better when you have a large amount available and want to invest it all at once. Many investors use both strategies—SIP for regular investments and Lump Sum for bonuses or windfalls.
How Calculations Work
SIP Formula: FV = P × [((1 + r)^n - 1) / r] × (1 + r), where P is investment per period, r is periodic rate, and n is total periods. This accounts for each investment compounding for different durations. Lump Sum Formula: FV = PV × (1 + r)^n, where PV is present value (lump sum), r is annual rate, and n is years. This uses simple compound interest with annual compounding. Both formulas show how your money grows over time through the power of compounding.
Benefits of Each Approach
SIP Benefits: Disciplined investing, rupee cost averaging, power of compounding, lower risk through systematic investing, flexibility to start small, convenience of automation. Lump Sum Benefits: Immediate full investment, potentially higher returns if timed well, fewer transactions, simpler management, good for windfalls or bonuses. Both approaches benefit from compound interest, where returns generate more returns over time.
Understanding Returns
Returns depend on three main factors: investment amount (higher amounts lead to higher absolute returns), return rate (market performance significantly affects returns), and time period (longer periods benefit more from compounding). The calculator shows both absolute returns (rupee amount) and percentage returns (return on investment). The pie chart helps visualize the breakdown of your total value, showing invested amount versus returns at a glance. Use the projection table to see how your investment grows over different time horizons.
Tips for Investing
Start early—time is your biggest advantage due to compounding. Invest consistently—maintain your SIP even during market downturns, or hold your lump sum investment for the long term. Increase investment amounts annually as your income grows. Diversify across different mutual fund categories. Review periodically but avoid frequent changes. Stay invested for the long term to maximize compounding benefits. Consider using both SIP and Lump Sum strategies—SIP for regular investments and Lump Sum for bonuses or large amounts. Use this calculator to set realistic goals and track progress.
Summary
This SIP & Lump Sum calculator estimates the future value of your systematic or one-time investments in mutual funds. Toggle between SIP and Lump Sum modes, use draggable sliders to adjust parameters, and see real-time results in the interactive pie chart. The chart shows the visual breakdown of your total investment value. It's free, works in your browser, and requires no account. Use it to plan your mutual fund investments, understand the power of systematic and lump sum investing, and set realistic financial goals. Both SIP and Lump Sum are effective ways to build wealth through disciplined investing that benefits from compounding over time.