Mutual Fund Calculator
SIP Calculator
Systematic Investment Plan — invest monthly, grow wealth steadily
Your results will appear here
Enter your monthly investment, tenure and expected return, then click Calculate to see your projected SIP returns.
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Lumpsum Calculator
One-time investment — let compounding do the work
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Enter your investment amount, tenure and expected return, then click Calculate to see your projected lumpsum returns.
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Power of SIP
Regular monthly investments harness rupee-cost averaging and compounding to build significant wealth over time.
Compounding Magic
Even modest returns compound dramatically over long periods. Starting early can double or triple your final corpus.
Indicative Only
Mutual fund returns are market-linked. This calculator assumes a constant return rate for illustration purposes.
Understanding Mutual Funds
SIP vs Lumpsum: Which is Right for You?
A guide to mutual fund investment strategies and how they work
Invest a fixed amount every month regardless of market conditions. This averages your purchase cost over time — buying more units when prices fall and fewer when they rise. Ideal for salaried individuals who want disciplined, regular investing without timing the market.
Deploy a large sum at once, allowing the full corpus to compound immediately. Best when you have a significant amount available — a bonus, inheritance, or matured fixed deposit — and are comfortable with short-term market volatility for long-term gain.
Park a lumpsum in a liquid fund and set up a Systematic Transfer Plan (STP) to move it into equity funds monthly. This combines the full-deployment of lumpsum with the cost-averaging of SIP — a popular strategy among seasoned investors.
SIP returns are calculated using the future value of an annuity formula: FV = P × [((1 + r)ⁿ − 1) / r] × (1 + r), where P is the monthly investment, r is the monthly rate of return (annual rate ÷ 12), and n is the total number of months. The final (1 + r) accounts for the fact that SIP payments are typically made at the beginning of each period.
The key insight is that earlier payments compound for more periods — your first month's investment grows for the entire tenure, while your last month's investment barely grows at all. This is why starting early has an outsized effect on the final corpus.
A lumpsum investment grows using the compound interest formula: A = P × (1 + r/n)^(n×t), where P is the principal, r is the annual rate, n is the compounding frequency per year, and t is the time in years. For mutual funds, annual compounding is standard for illustrations.
The real power shows in long durations. At 12% p.a., money doubles roughly every 6 years (Rule of 72). ₹1 lakh invested at 25 becomes ₹17 lakh — without adding a single rupee. This is why lumpsum investments work best when you have a very long investment horizon.