SIP vs Lumpsum Calculator
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SIP vs Lumpsum Calculator: Compare Mutual Fund Returns
Are you still confused about whether you should invest your money little by little each month or put in a large sum all at once? If you’ve been stuck in that thought, there’s no need to worry anymore, because this SIP vs Lumpsum Calculator has been created to clear up your confusion. So with the help of this tool, you can easily see how fast your money can grow under different investment scenarios and what returns you can expect in the future.
Who is this calculator for?
- New Investors: Who are thinking of investing in mutual funds for the first time.
- Salaried Professionals: Who want to understand the SIP vs Lumpsum every month strategy well.
- Goal Seekers: Who are looking for an SIP Interest Calculator for retirement or their child’s education.
- Businessmen: Who have surplus cash and want to check returns with the Lumpsum Amount Calculator to see how profitable they can be in the future.
Total Time: 2 Minutes, Cost: Free
How to Use a SIP vs Lumpsum Calculator? A Step-by-Step Guide
If you’re thinking about investing in mutual funds for the first time, this guide will help you a lot with the right calculations. To do this, follow the steps given below carefully:
Step 1: Choose an Investment Method (Calculation Type)
First, select your preferred method from the dropdown menu, such as.
-Monthly SIP: If you want to invest a fixed amount every month, such as ₹500 or ₹5,000.
-One-time Lumpsum: If you have a large sum of money and want to invest it all at once.
Step 2: Enter Investment Amount
Here, enter the amount you want to invest.
If you’ve selected SIP, enter the amount you want to invest each month in the ‘Monthly Amount’ field.
If you’ve selected Lumpsum, enter your total amount.
Tip: You can start with as little as ₹100 for a minimum SIP, or ₹5,000 for a lumpsum.
Step 3: Expected Annual Return (%) Enter
What do you think your fund will return annually? Generally, people expect a long-term return of 12% to 15% from mutual funds. However, you can also enter a percentage based on your own research. If you think it should be 20% annually, you can enter that and check.
Step 4: Select the Time Period (Tenure)
How many years do you want to keep your money invested? For example, 5 years, 10 years, or 20 years? But remember, the more time you give mutual funds, the more the magic of compounding will show.
Step 5: Click the ‘Calculate Returns’ Button
After filling in all the details, press the calculate button. The calculator will immediately show you 3 main things, such as:
-Amount Invested: The total amount of money you have invested from your pocket.
-Wealth Gained: How much profit (interest) you have earned on your investment.
-Total Value: The final value of your investment (Invested + Profit).
Step 6: Check Details in the Table
A table will be generated below that shows a complete summary of your investment, helping you plan your financial goals even better.
The Logic Behind Math (Formula & Example)
Our SIP vs Lumpsum returns Calculator works on the formulas given below:
- For Lumpsum: To calculate the Future Value, the Compound Interest formula is used, which is: t
where:
- P = Principal
- r = Rate
- t = Time
- For SIP: Interest is compounded on the money invested each month for different periods.
Example: Suppose you invest ₹5,000 in a monthly SIP for 10 years and get a 12% return.
- Total Invested: ₹6,00,000
- Estimated Returns: ₹5,61,695
- Total Value: ₹11,61,695
Comparison Table
From the table below, you can easily see how much of a difference a 12% expected return makes between SIP vs Lumpsum Investment:
| Investment Type | Amount (₹) | Duration | Total Value (Approx) |
| Monthly SIP | ₹10,000 / month | 10 Years | ₹23.23 Lakh |
| Lumpsum | ₹12,00,000 (One-time) | 10 Years | ₹37.27 Lakh |
| Monthly SIP | ₹5,000 / month | 20 Years | ₹49.95 Lakh |
Pro-Tips: SIP vs Lumpsum Which is Better?
The right way to invest depends on the market conditions, such as:
- Leveraging Volatility: If the market is fluctuating, then an SIP is best at such times because it gives you the benefit of ‘Rupee Cost Averaging’.
- Large Sum: If you have a large sum of money from a bonus or inheritance, compare SIP vs Lumpsum in mutual funds and choose Lumpsum when the market is down.
- Avoid Mistakes: Never try to “time” the market, as doing so increases your chances of loss. Therefore, invest with discipline. This is the only secret to getting rich.
Extra Knowledge: Which Option Is Best for You?
Merely doing the calculations isn’t enough. If you’re thinking about starting an investment, it’s crucial to first understand whether you should choose SIPs or lump sums based on market conditions. Do you want to know which route wealthy people take in a falling market?
A detailed answer is provided in our special guide, so be sure to read it once: SIP vs Lumpsum: Which is Better?
Learn More About Mutual Funds: Before you start investing, it’s very important to have accurate information about market risks and mutual fund schemes. You can visit the official AMFI (Association of Mutual Funds in India) website to learn in detail about mutual fund rules and investor awareness in India.
Privacy Note: We do not store any of your financial data on our servers. All calculations are performed locally in your browser, so your data is 100% safe and private.
Frequently Asked Questions
SIP vs Lumpsum which is better for long term?
If you look at it, both have their own advantages. SIP is for those who have a regular income, while Lumpsum is better when the market is low and you have a large sum to invest. Because in the long term, compounding works wonders in both.
Can I increase the SIP amount in the middle?
Yes, you can absolutely increase it. This is called a ‘Step-up SIP’. Although this calculator compares a basic SIP with a lump sum, increasing your investment every year can grow your corpus even more, helping you achieve excellent returns in the long term.
How accurate is the SIP vs Lumpsum Returns Calculator?
This calculator is based on mathematical formulas. Actual returns depend on the mutual fund’s performance and market risks.
Is a lumpsum investment risky?
A lumpsum investment becomes risky when you put all your money in at the market’s peak and the market then falls, so there can be short-term risk. That’s why many experts recommend investing in a lump sum through an STP (Systematic Transfer Plan).
Disclaimer: This calculator is only an educational tool and its results are based on estimated returns. Investments in mutual funds are subject to market risks. We are not financial advisors, so before investing, be sure to consult your financial expert or carefully read all documents related to the scheme.