SIP Calculator + Lumpsum

Created by Tibor Pal, PhD candidate
Reviewed by Dominik Czernia, PhD candidate, Jack Bowater and Adena Benn
Last updated: Jul 11, 2022

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.

What is lumpsum and 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.

How to use the SIP calculator + lumpsum

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 future value of an annuity.
  • 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.

What is the difference between SIP and lumpsum?

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

Factor

SIP

Lumpsum

Cash Flow

Periodic

One-time

Risk tolerance

Low or moderate

Moderate or high

Term

Rather short

Long term

Flexibility

High

Low

Timing

Not relevant

Market condition matters

Falling Net Asset Value (NAV)

More recommended

Less recommended

High uncertainty

Not recommended

Better option

FAQ

Can I invest lumpsum in existing SIP?

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

Which is better SIP or lumpsum?

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.

What is the final balance of a 10 years SIP investment at a monthly SIP of Rs. 1,000?

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.

How do I calculate the final balance of my SIP?

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)).

Disclaimer

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.

Tibor Pal, PhD candidate
Main specifications
I'd like to know the...
final balance
Initial lumpsum
$
Expected rate of return
%
Term
yrs
Start date
Inflation rate
%
SIP inputs
How much do you deposit?
$
How often?
monthly
When?
at the beginning of periods
Results
The final balance of your investment will be $2,707.04 at the end of the term.
Opening balance$1,000.00
Final balance$2,707.04
Monthly deposit$0.00
Total deposit$0.00
Total return$1,707.04
Number of deposits120
End of termAug. 17, 2032
Display...
chart of balances
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