Systematic Investment Plan Calculator and Lumpsum Investment Calculator

Plan your financial future with our SIP and Lump Sum calculator

Monthly SIP

Annual SIP

Lump Sum

Monthly Investment (₹)

₹

Expected Annual Return Rate (%)

Investment Duration (Years)

Investment Projection

Invested Amount: ₹0

Estimated Returns: ₹0

Total Value: ₹0

What is SIP (Systematic Investment Plan)?

A SIP is an investment strategy where you invest a fixed amount regularly (monthly/quarterly) in mutual funds or other investment vehicles. It helps in rupee cost averaging and benefits from the power of compounding.

SIP Formula:

Future Value = P × [{(1 + r)ⁿ - 1} / r] × (1 + r)

Where:

P = Monthly investment amount
r = Monthly rate of return (annual rate/12)
n = Total number of months (years × 12)

Example: Monthly SIP

If you invest ₹5,000 monthly for 10 years at 12% annual return:

P = ₹5,000
r = 12%/12 = 1% = 0.01
n = 10 × 12 = 120 months

FV = 5000 × [{(1 + 0.01)¹²⁰ - 1} / 0.01] × (1 + 0.01)
FV = ₹11,61,695 (Approx)

What is Lump Sum Investment?

A lump sum investment involves investing a significant amount of money at one time rather than spreading it out over regular intervals. The returns depend on the market conditions at the time of investment.

Lump Sum Formula:

Future Value = P × (1 + r)ⁿ

Where:

P = Principal investment amount
r = Annual rate of return
n = Number of years

Example: Lump Sum Investment

If you invest ₹1,00,000 as lump sum for 10 years at 12% annual return:

P = ₹1,00,000
r = 12% = 0.12
n = 10 years

FV = 100000 × (1 + 0.12)¹⁰
FV = ₹3,10,585 (Approx)

Understanding the Power of Compounding

Compounding is the process where the earnings on an investment generate their own earnings. In simple terms, it's "interest on interest" which causes wealth to grow exponentially over time.

Why SIP Works Better in Volatile Markets?

SIP benefits from rupee cost averaging - when markets are down, your fixed investment buys more units, and when markets are up, you buy fewer units. This averages out your purchase cost over time.

When to Choose Lump Sum?

Lump sum investments work best when markets are low or when you have a large amount to invest at once. Historically, lump sum investments have outperformed SIPs about 70% of the time in rising markets.

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SIP