SIP & Lumpsum Calculator
Calculate the future value of your monthly Systemic Investment Plan (SIP) or one-time Lumpsum investments.
Breakdown
Invested
₹6,00,000
Returns
₹5,61,695
Total
₹11,61,695
Schedule
| Year | Invested | Value |
|---|---|---|
| 1 | ₹60,000 | ₹64,047 |
| 2 | ₹1,20,000 | ₹1,36,216 |
| 3 | ₹1,80,000 | ₹2,17,538 |
| 4 | ₹2,40,000 | ₹3,09,174 |
| 5 | ₹3,00,000 | ₹4,12,432 |
| 6 | ₹3,60,000 | ₹5,28,785 |
| 7 | ₹4,20,000 | ₹6,59,895 |
| 8 | ₹4,80,000 | ₹8,07,633 |
| 9 | ₹5,40,000 | ₹9,74,108 |
| 10 | ₹6,00,000 | ₹11,61,695 |
What is Systematic Investment Plan?
A Systematic Investment Plan (SIP) is a disciplined way of investing in mutual funds where investors contribute a fixed amount at regular intervals, usually every month. Instead of investing a large lump sum at once, SIP allows you to build wealth gradually over time through consistent investments and compounding.
SIPs are widely used for long-term financial goals such as retirement, education planning, or wealth creation.
How Systematic Investment Plan Works
In a SIP, a fixed amount is automatically invested in a mutual fund every month. Each investment purchases units of the fund based on the current market price.
Over time, this approach benefits from compounding returns, rupee cost averaging, and disciplined investing.
Compounding Returns
Earnings generate their own earnings over time
Rupee Cost Averaging
Buy more units at low prices, fewer at high prices
Disciplined Investing
Regular contributions build wealth systematically
Calculation Method
Formula:
Where:
- M = Total value at maturity
- S = Monthly investment amount (SIP)
- i = Monthly interest rate (Annual rate ÷ 12)
- n = Total number of monthly investments
Assumptions:
- ✓ Monthly contributions
- ✓ Monthly compounding
- ✓ Fixed annual rate
- ✓ Converted to monthly rate
Key Benefits
Disciplined Investing
Regular contributions foster consistent habit formation
Compounding Power
Long-term wealth building through exponential growth
Market Timing Risk
Reduced impact of market volatility over time
Flexibility
Adjust amounts and durations based on your needs
Low Entry
Start with affordable monthly amounts
Goal-Oriented
Perfect for retirement, education, and wealth creation
Important Disclaimer
This calculator provides estimated returns for educational and planning purposes only. Mutual fund investments are market-linked, and actual returns may vary depending on market performance, fund management, and economic conditions.
Always review scheme details and consult financial professionals before making investment decisions.