Calculate your investment growth with lump sum and SIP investments
Our mutual fund and SIP calculator helps you estimate the future value of your investments based on the power of compounding. Here's how to use it:
Calculate both lump sum investments and systematic investment plans (SIP).
See pie charts that clearly show your investment vs. returns earned.
View line charts showing how your investment grows year by year.
Understand exactly how your returns are calculated with detailed steps.
Uses compound interest formulas for precise future value estimation.
Perfect for learning about compounding and investment planning.
Lump sum investment involves investing a large amount at once, while SIP (Systematic Investment Plan) involves investing a fixed amount regularly (usually monthly). SIP helps in rupee cost averaging and reduces the impact of market volatility.
For lump sum investments, the future value is calculated using the compound interest formula: Future Value = Initial Investment × (1 + Annual Return Rate)Number of Years. For SIP, the formula is more complex as it accounts for regular monthly investments.
Compounding is the process where your investment earns returns, and those returns then earn additional returns. Over time, this creates exponential growth. The longer your investment horizon, the more powerful compounding becomes.
No, mutual fund returns are not guaranteed. They depend on market performance. The returns used in this calculator are hypothetical and for illustration purposes only. Past performance does not guarantee future results.
Both have their advantages. Lump sum investing can be beneficial in a rising market, while SIP helps average out purchase costs and reduces timing risk. For most retail investors, SIP is recommended as it instills financial discipline and reduces market timing risk.
Most mutual funds calculate returns on a daily basis, but the compounding effect is typically considered annually for long-term investment planning, as done in this calculator.