SIP Calculator + Lumpsum

We created this SIP calculator (lumpsum) to help you estimate all relevant aspects of a given systematic investment plan (SIP) with lumpsum investment. More specifically, you can use the present lumpsum plus SIP calculator or systematic investment plan calculator to answer any of the following questions:

• What will be the final balance of your lumpsum or SIP?
• What should be the initial lumpsum to reach a specific goal?
• What should be the periodic SIP amount to reach a specific goal?
• What is the required period to reach a particular goal?
• What is the required rate of return for the SIP vs. lumpsum mutual fund scheme?

What makes this tool especially unique is that we added the possibility to include the inflation rate and future date for starting your investment to check how changing buying power would affect your investment.

Read further, and we will show you how to use the SIP calculator + lumpsum. We also explain the meaning of lumpsum and SIP. Additionally, you can learn the difference between SIP and lumpsum investment.

After all, if you are interested only in lumpsum investment, check our lumpsum calculator or the systematic investment plan calculator, in case of an only SIP.

While both lumpsum and SIP refer to mutual fund investment, their concepts differ slightly. When you do lumpsum investment, you invest a single sum of money in a particular mutual fund. With a SIP or systematic investment plan, on the other hand, you invest a smaller amount of money periodically.

To use the lumpsum plus SIP calculator, you first need to choose what you would like to compute:

• Final balance;
• Initial lumpsum;
• SIP amount;
• Required period; or
• Required rate of return.

After providing the rest of the variables, you will immediately see the results of the calculation:

1. Main specifications

• Initial lumpsum - Your investment's present value (PV).
• Your goal - The desired future (FV) value of your investment.
• Expected rate of return - Annual nominal interest rate.
• Compounding frequency (advanced mode) - How often is interest added to the principal balance of your investment. If you would like to see the power of compounding, switch to the advanced mode of this mutual fund lumpsum calculator. Here, you can check how your balance changes if you set a yearly or continuous compounding frequency.
• Term - The length of your investment.
• Inflation rate - The expected annual inflation rate during the investment term. You can set a negative value if you expect a fall in the general price level during the set interval, representing deflationary pressures.
• Start date - The first day of investment.

2. SIP inputs

• How much to deposit?
• How often?
• When? - transferring your SIP contribution at the beginning or end of the period affects your final balance.

3. Results
After setting all of the parameters, you will be able to read the result and study all details of your investment in the summary table below the lumpsum calculator with inflation.

4. Balances and schedules
You can also follow the progress of your SIP investment with lumpsum in a dynamic chart and a table with a payment schedule.

The below table summarizes the main factors to compare investment in SIP vs lumpsum mutual funds.

Yes, you can. Mutual funds allow you to invest in financial instruments flexibly.

Considering potential future returns, you may reach a higher return with a lumpsum investment if you are able to predict well when a market will be low and invest at the right time. Otherwise, SIP is better.

Of course, the answer largely depends on the expected rate of return. Let's say, if your expected rate of return is 10%, your final balance of a monthly SIP of Rs. 1,000 investment after ten years with monthly compounding will be Rs. 2,06,552.

Follow the steps below to compute your SIP's final balance (FV).

1. Take the interest rate in a decimal form plus 1 to the power of the periods, then deduct 1 (1 + r)ⁿ - 1.
2. Divide the previous value by the interest rate.
3. Multiply the value by the SIP deposit (P) FV = (P * ((1 + r)ⁿ - 1) / r)).

You should consider the lumpsum plus SIP calculator as a model for financial approximation. All payment figures, balances, and interest figures are estimates based on the data you provided in the specifications that are not exhaustive despite our best effort.

For this reason, we created the calculator for instructional purposes only. Still, if you experience a relevant drawback or encounter any inaccuracies, we are always pleased to receive helpful feedback and advice.