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SIP and Lumpsum Calculator

Future Value of Investments

Investments in Mutual Funds can be broadly classified into two types- lumpsum and SIP. A lumpsum investment is when the depositor invests a significant sum of money on a particular mutual fund scheme in one go. SIP or Systematic Investment Plan, on the other hand, entails the investment of smaller amounts on a regular basis.

One-Time Investment:

Involves investing a lump sum amount at a single point in time. Suitable for individuals with a significant amount of capital or those looking to make a one-off investment.

Monthly Systematic Investment:

Common and widely used, monthly SIP involves investing a fixed amount on a monthly basis. Suited for individuals looking for a disciplined, systematic approach to investing.

Quarterly Systematic Investment:

Involves investing a fixed amount every quarter (every three months). Provides a more extended time frame between contributions compared to monthly SIP. Mostly exercised by corporate employees to invest their bonus .

Annual Systematic Investment:

This involves making fixed annual contributions to the investment. Suitable for individuals who prefer an even more infrequent and long-term investment commitment.

When should one prefer Lumpsum or SIP Investment?

The decision between lump sum and SIP investment hinges on your financial goals and risk tolerance. Opt for lump sum investments when you have a substantial amount and a positive market outlook, making it suitable for short-term goals or immediate capital needs. Conversely, SIP is ideal for those favoring a disciplined, gradual approach, mitigating market volatility through regular, fixed investments. Suited for long-term goals, SIP offers benefits like rupee cost averaging, minimizing the risks associated with timing the market

How does this Calculator work?

In our Calculator, you need to just enter the required inputs such as the amount you are willing to invest, the time period (in years) you are willing to stay invested and, the expected rate of return per annum that you think the investment will generate. After entering the required variables, the calculator will give you the future value of your investments.

The Calculator generates the following output for the user:

  1. Total Invested : It lets the user know how much money s/he invested as principal amount during the investment period.
  2. Interest earned : It generates how much interest income added to an investor portfolio on account of invested money.
  3. Total Value of Investment : It shows how much is the value of an investor portfolio after the tenure of the investment. It includes the principal invested and interest earned thereon.


Please note that these calculators are for illustrations only and do not represent actual returns.
The Stock Market does not have a fixed rate of return and it is not possible to predict the rate of return.
It calculates the interest amount based on compound interest. All the interest payments are considered as received at the end of the period.
It ignores any exit load charge by AMCs in case of early withdrawal.

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