Lump Sum + SIP Calculator
Estimate how much your one-time investment and monthly SIP can grow over time with compound returns.
Year-wise Projection
| Year | Total Invested | Estimated Value | Estimated Gain |
|---|
Assumption: SIP contribution is made at the end of each month. Returns are hypothetical and not guaranteed.
What is a Lump Sum + SIP strategy?
A lump sum SIP strategy combines two investing styles: a one-time investment (lump sum) and regular monthly contributions (SIP). This is common when you have some money available today, but also want to keep building wealth every month from salary or business cash flow.
Instead of choosing between lump sum or SIP, this blended approach allows you to start compounding immediately while still using disciplined, long-term monthly investing.
How this calculator works
Inputs used
- Initial lump sum: Amount invested once at the beginning.
- Monthly SIP: Amount invested every month.
- Annual return: Expected average annual growth rate.
- Investment period: Number of years you stay invested.
- Inflation: Optional adjustment for future purchasing power.
Outputs shown
- Total amount invested
- Estimated maturity value
- Total estimated wealth gain
- Inflation-adjusted future value (if inflation entered)
- Year-by-year progression table
Formula used in the calculator
The estimate is based on monthly compounding:
- Monthly rate (r): Annual Return / 12
- Months (n): Years × 12
- Lump sum future value: Lump Sum × (1 + r)n
- SIP future value: SIP × [((1 + r)n - 1) / r]
Final corpus is the sum of both future values. If return is 0%, the calculator automatically uses a simple contribution total without compounding.
Why this method can be powerful
- Immediate compounding: Your lump sum starts working from day one.
- Rupee-cost averaging: Monthly SIP smooths volatility over time.
- Behavioral discipline: Automatic investing reduces timing mistakes.
- Goal flexibility: Works for retirement, child education, home down payment, or financial independence.
Example scenario
Suppose you invest ₹1,00,000 today and continue with a ₹10,000 monthly SIP for 10 years at 12% expected annual return. Your total invested amount would be ₹13,00,000, while estimated portfolio value may be significantly higher due to compounding.
Use the calculator above to test different combinations and see how small changes in return, duration, or monthly contribution affect your final corpus.
Tips for realistic planning
1) Use conservative return assumptions
For long-term planning, many investors use a moderate range instead of optimistic returns. This helps avoid underfunding future goals.
2) Increase SIP every year
If income grows, a periodic SIP increase can have a huge long-term impact. Even a 5–10% annual step-up can materially improve outcomes.
3) Consider inflation
A future value can look large in nominal terms but buy less in real terms. Use inflation-adjusted projections for retirement and education goals.
4) Stay invested
Time in the market usually matters more than trying to perfectly time entry and exit.
Common mistakes to avoid
- Stopping SIPs during market corrections
- Using unrealistically high expected return assumptions
- Ignoring taxation, fees, and fund expense ratios
- Not aligning investment horizon with goal timeline
Quick FAQ
Is this calculator only for mutual funds?
No. You can use it for any investment where regular monthly contributions and compounding are relevant.
Does this guarantee returns?
No. The output is a projection, not a promise. Actual market returns vary.
Should I choose only lump sum or only SIP?
That depends on cash availability, risk tolerance, and timing comfort. Many investors prefer a combination for balance.