SIP Calculator
Build Your Wealth with Our SIP & Lumpsum Calculator
Investing is no longer just for experts or big investors. Today, anyone can start investing and create wealth gradually. The key is to start early and stay consistent. Our SIP & Lumpsum Calculator helps you plan your investments smartly and see exactly how your money can grow over time.
💡 What is a SIP?
A SIP (Systematic Investment Plan) allows you to invest a fixed amount regularly — usually every month — in a mutual fund. SIPs help you develop a disciplined investing habit without worrying about market timing.
The main advantage of SIP is rupee cost averaging, which means you buy more units when prices are low and fewer units when prices are high. Over the long term, this strategy helps reduce the average cost per unit.
💰 What is a lumpsum investment?
A lumpsum investment is when you invest a large amount at one time instead of spreading it monthly. This method works well if you have a big amount ready (like a bonus or savings) and want to invest it immediately to benefit from market growth.
📊 SIP vs Lumpsum: Which one should you choose?
There’s no single answer that suits everyone. Your choice depends on your goals, risk appetite, and available funds.
- Choose SIP if you want to invest regularly, avoid market timing risks, and build wealth slowly and steadily.
- Choose lumpsum if you have a large amount ready to invest and are comfortable with short-term market ups and downs.
Our calculator helps you compare both options side by side so you can decide what works best for your situation.
⚡ How does our calculator work?
Our SIP & Lumpsum Calculator is designed to be simple and interactive. You just need to enter:
- Investment amount (monthly SIP or lumpsum)
- Expected annual return rate
- Investment duration (years)
The calculator will instantly show you:
- Total invested amount
- Estimated returns
- Total value at maturity
Plus, it displays an easy-to-understand chart, so you can visually see how much of your corpus is from your contributions and how much is from returns.
🧮 How we calculate SIP and lumpsum returns
SIP Formula
The future value of a SIP investment is calculated using this formula:
FV = P × { ( (1 + r)^n – 1 ) / r } × (1 + r)
Where:
- FV = Future value of the investment
- P = SIP amount (monthly investment)
- r = Monthly rate of return (annual return / 12 / 100)
- n = Total number of months
This formula shows the power of compounding in monthly investments.
Lumpsum Formula
For lumpsum investments, the future value is calculated as:
FV = P × (1 + r)^n
Where:
- FV = Future value of your lumpsum investment
- P = Initial lumpsum amount invested
- r = Annual rate of return (as a decimal, e.g., 12% = 0.12)
- n = Number of years
🌱 Example calculation
Let’s say you start a SIP of ₹5,000 per month for 10 years at an expected annual return of 12%.
- Total invested: ₹6,00,000
- Estimated value at maturity: ₹11,61,695 (approx.)
- Wealth gain: ₹5,61,695
If you invest ₹5,00,000 as a lumpsum at the same return for 10 years, it can grow to ₹15,52,924 (approx.).
These examples show how disciplined investing can create wealth over time.
💬 Frequently Asked Questions (FAQs)
✅ How much should I invest in SIP?
You can start with as low as ₹100 or ₹500 per month. It depends on your goals and affordability. The important thing is to start early and stay regular.
✅ What return rate should I consider?
✅ Can I stop SIP anytime?
✅ Is SIP safer than lumpsum?
Both involve market risk. SIP reduces risk by spreading investments over time (rupee cost averaging), while lumpsum carries more timing risk but may yield higher returns in a rising market.
✅ What is the minimum lumpsum investment?
🚀 Start your wealth journey today
Whether you choose SIP or lumpsum, the most important step is to start. Use our calculator above to play with numbers, set your goals, and see how even small amounts invested regularly can grow into a significant corpus.
Start today and take a confident step toward your financial freedom.