Lumpsum + SIP Calculator
Use this tool to estimate the final value of your investments by combining a one-time lumpsum investment and a recurring SIP. The breakdown will show how much returns come from each investment type.
Final Corpus
Switch to Desktop View to see the table
Yearly Breakdown
| Year | Investment Made | Total Investment | Total Returns | Total Corpus | Growth in the Year |
|---|
How This Calculator Works
The calculator estimates the future value of your combined investments using the following formulas:
Where:
FV = Future Value
P = Lumpsum Investment
PMT = Monthly SIP Contribution
r = Annual Interest Rate
n = Compounding Frequency (default: 12)
t = Investment Duration (in years)
At FinanceMadeEasy (www.financemadeeasy.in), we understand that making smart investment decisions can feel overwhelming. One of the best tools you can have to make informed decisions is the Lumpsum SIP Calculator. When investing in mutual funds, investors often face the dilemma of choosing between SIP (Systematic Investment Plan) and lumpsum investments.
While SIPs are excellent for those who prefer investing small amounts regularly, lumpsum investments are ideal for those with a large sum of money ready to invest all at once. You can also combine both strategies to optimize your portfolio. This is where the Lumpsum SIP Calculator comes into play.
What is SIP and Lumpsum Investment?
SIP (Systematic Investment Plan)
- Lower Risk: By investing small amounts regularly, SIP helps reduce the impact of market volatility.
- Affordable: SIPs are ideal for those who cannot invest large amounts at once.
- Long-Term Growth: SIP encourages disciplined investing and compounding over time.
Lumpsum Investment
A lumpsum investment involves investing a one-time large sum of money into a mutual fund or other investment instruments. Here are the key benefits:
- High Potential Returns: If the market performs well, your entire investment can grow faster.
- Immediate Exposure: You benefit from market performance right away, unlike SIP, which spreads the risk over time.
Combining SIP and lumpsum strategies can often create a balanced portfolio that optimizes both risk and reward. The Lumpsum SIP Calculator can help you calculate the future value when combining both methods.
Example of Combining SIP and Lumpsum Investments
Let’s say you have ₹1,00,000 that you want to invest as a lumpsum, and you also plan to invest ₹5,000 every month in SIP for 5 years, with an expected annual return of 10%. Here's how the Lumpsum SIP Calculator would work:
- The ₹5,000 SIP contribution will accumulate over time, growing with compounding.
- The ₹1,00,000 lumpsum will start growing immediately based on the same 10% return.
The Lumpsum SIP Calculator will combine both investments and show you the total future value after 5 years.
Why Combining SIP and Lumpsum Makes Sense
- Immediate Exposure with Lumpsum: Lumpsum investments provide immediate market exposure, potentially yielding faster returns when the market performs well.
- Disciplined Growth with SIP: SIP allows you to invest smaller amounts regularly, taking the stress out of timing the market.
- Balanced Risk and Reward: Combining both strategies lets you balance high returns from lumpsum with the stability and consistency offered by SIP.
Example of a Combined SIP and Lumpsum Strategy
Suppose you plan to invest ₹50,000 as a lumpsum and ₹10,000 every month through SIP, expecting an annual return of 12% over 10 years. Here's what the Lumpsum SIP Calculator might show:
- Lumpsum: ₹50,000 grows at 12% annually, and after 10 years, it will be worth more than ₹1,55,000 (exact amount depends on the rate of return).
- SIP: Investing ₹10,000 monthly would accumulate to more than ₹23 lakh after 10 years, assuming the same 12% return.
FAQs on Lumpsum SIP Calculator
What is the Lumpsum SIP Calculator?
The Lumpsum SIP Calculator helps you estimate how your combined investments in both SIP and lumpsum will grow over time. It calculates the future value based on the rate of return and the duration of the investment.
Why should I use this calculator?
The calculator helps you understand how both types of investments (SIP and lumpsum) will perform together, giving you a clearer picture of how to grow your wealth while balancing risk.
Can I use the calculator on FinanceMadeEasy?
Yes, you can use the Lumpsum SIP Calculator on FinanceMadeEasy (www.financemadeeasy.in). It's easy to use and will help you make more informed investment decisions.
What is the benefit of combining SIP and lumpsum investments?
Combining SIP and lumpsum investments allows you to maximize returns by benefiting from the immediate market exposure of lumpsum, while ensuring steady, disciplined growth with SIP.
How does the calculator account for inflation?
The Lumpsum SIP Calculator on FinanceMadeEasy adjusts for inflation, providing a more realistic estimate of returns by considering the decrease in purchasing power over time.