SIP Calculator
Estimate the returns on your Systematic Investment Plan. Enter your monthly investment, expected return rate & duration to calculate your maturity amount instantly.
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Total Returns
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Wealth Gained
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Break-up of Maturity Amount
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Understanding SIP & Lumpsum Investments
Whether you prefer investing a fixed amount every month (SIP) or deploying a large sum at once (Lumpsum), both strategies harness the power of compounding to grow your wealth over time. Use the toggle above to switch between modes and calculate the projected returns for either approach.
SIP (Systematic Investment Plan)
A Systematic Investment Plan involves investing a fixed amount every month into a mutual fund. SIP is ideal for salaried investors who want a disciplined, automated approach to wealth creation. Key benefits include:
- Rupee-Cost Averaging: You automatically buy more units when markets are down and fewer when they are up, averaging out your cost over time.
- Financial Discipline: Auto-debit removes the need to manually invest each month, eliminating the temptation to time the market.
- Low Entry Barrier: Start with as little as ₹500 per month — SIP is accessible to virtually every income group.
Lumpsum Investment
A lumpsum investment involves deploying a large sum of money all at once. This approach works best when you have a windfall (bonus, inheritance, matured FD) and want to put it to work immediately for maximum compounding duration.
- Maximum Compounding: Entire corpus starts earning returns from day one — giving it the longest possible compounding runway.
- Best for Market Dips: When markets are significantly down, a well-timed lumpsum can generate exceptional long-term returns.
- Simplicity: One decision, one transaction — no monthly commitments required.
Calculation Formulas
SIP Formula
- P = Monthly SIP amount
- r = Monthly rate (Annual / 12 / 100)
- n = Total months
Lumpsum Formula
- P = Initial lumpsum amount
- r = Annual return rate / 100
- n = Investment period in years
SIP vs Lumpsum — Which is Better?
The right choice depends on your financial situation:
- Regular income → SIP: If you earn a steady salary, SIP aligns perfectly with your monthly cash flow and builds discipline.
- Large windfall → Lumpsum: If you receive a bonus, inheritance, or matured investment, deploying it all at once maximises compounding time.
- Market uncertainty → SIP: In volatile markets, SIP smooths your entry price through rupee-cost averaging, reducing timing risk.
- Long time horizon → Either: Over 10+ years, both strategies tend to converge in performance, though SIP offers a smoother experience.
Frequently Asked Questions (FAQ)
What is a SIP calculator?
A SIP calculator estimates the future maturity value of your Systematic Investment Plan using the standard SIP future value formula. It takes your monthly investment, expected annual return rate, and investment tenure as inputs.
What is a lumpsum calculator?
A lumpsum calculator estimates the future value of a one-time investment using the compound interest formula M = P × (1 + r)^n. It shows how much a single investment will grow over a given number of years at an expected annual return rate.
Which gives better returns — SIP or lumpsum?
In a rising market, lumpsum tends to outperform SIP because the full corpus is invested from day one. In a volatile or declining market, SIP often performs better due to rupee-cost averaging. Over very long horizons, the difference narrows significantly.
What is a realistic return rate to use?
Diversified equity mutual funds in India have historically delivered 10–15% CAGR over the long term. For conservative planning, 10–12% p.a. is a reasonable estimate. Fixed deposits offer 6–7.5% p.a. Always remember that past returns do not guarantee future performance.
How much should I invest in SIP every month?
A common guideline is to invest at least 20% of your monthly take-home income. Use the SIP mode above to work backwards — enter your target corpus, expected return rate, and time horizon to find the exact monthly SIP amount needed.
Is this calculator free to use?
Yes, the ZeroKhata SIP & Lumpsum calculator is completely free. No account, sign-up, or login is required. Simply enter your values and get instant projections.