SIP + Lumpsum Calculator
Combine a one-time lumpsum investment with a recurring monthly SIP to estimate your total mutual fund corpus. Set an annual step-up rate to model salary-linked contribution hikes, choose your expected return rate, and get a year-wise growth chart alongside a full invested-vs-returns breakdown. Works as a pure SIP calculator, pure lumpsum calculator, or any hybrid of the two.
What is a SIP + Lumpsum calculator?
A SIP (Systematic Investment Plan) + Lumpsum calculator estimates the future value of a combined investment strategy: you invest a one-time amount at the start (lumpsum), and also contribute a fixed amount every month (SIP). Most real-world investors use exactly this approach, deploying an initial corpus from savings, a bonus, or a maturity payout, and then adding to it each month from their salary. This calculator handles both simultaneously and also supports an annual step-up feature, where your monthly SIP rises by a fixed percentage each year to keep pace with salary growth.
How the calculation works
The lumpsum portion uses the standard compound interest formula: FV = P x (1 + r)^n, where P is the principal, r is the annual return rate (as a decimal), and n is the number of years. The SIP portion converts the annual return to an effective monthly rate using: monthly rate = (1 + annual rate)^(1/12) - 1, then compounds each monthly payment forward to the end of the term. When a step-up percentage is applied, the monthly SIP amount increases at the start of each new year. Both future values are summed to give the total projected corpus. The difference between that corpus and your total invested capital is your estimated wealth gain.
Why the step-up SIP matters
A flat SIP of 5,000 per month for 20 years at 12% grows to roughly 49 lakh. If you increase that SIP by 10% each year (so 5,500 in year 2, 6,050 in year 3, and so on), the same 20-year horizon at 12% can produce a corpus exceeding 1.2 crore, more than double. The step-up models the reality that most investors earn more over time and can contribute more. Even a 5-10% annual increase, aligned with a typical salary hike, can dramatically change the final outcome because higher contributions in the later years are compounded over fewer years but the base is larger.
SIP vs lumpsum: which builds wealth faster?
A lumpsum invested all at once benefits from compounding on the entire principal from day one. A SIP builds gradually, so early contributions compound longer but later contributions have less time. During rising (bull) markets, a lumpsum usually outperforms SIP because the full capital captures early gains. During volatile or falling markets, SIP performs better because monthly purchases average out the entry price, a concept known as rupee-cost averaging. The hybrid approach, an upfront lumpsum plus a steady SIP, captures both benefits: the lumpsum works the full compounding period while the SIP smooths out market timing risk on new savings.
Historical return benchmarks for Indian mutual funds
| Fund category | Indicative 10-year CAGR | Risk level |
|---|---|---|
| Liquid / overnight funds | 4 - 6% | Very low |
| Short duration debt funds | 6 - 8% | Low |
| Balanced / hybrid funds | 9 - 11% | Moderate |
| Large-cap equity funds | 11 - 13% | Moderate-high |
| Flexi-cap equity funds | 12 - 15% | High |
| Small-cap equity funds | 14 - 18% | Very high |
Indicative long-run annualised returns by fund category. Past performance does not guarantee future results.
Frequently asked questions
What is the formula for SIP returns?
The standard SIP future value formula is: M = P x ((1 + i)^n - 1) / i x (1 + i), where M is the maturity value, P is the monthly investment, i is the monthly interest rate (calculated as (1 + annual rate)^(1/12) - 1), and n is the total number of monthly payments. For a step-up SIP, each year's batch of 12 payments uses a higher P, so the calculation loops year by year.
What is a step-up SIP and how does it help?
A step-up (or top-up) SIP automatically increases your monthly contribution by a fixed percentage every year. For example, a 10% annual step-up on a starting SIP of 5,000 means you invest 5,500 in year 2, 6,050 in year 3, and so on. This mirrors salary increments and keeps your savings rate in proportion to your income, allowing compounding to work on a growing base and significantly boosting the final corpus.
Can I use this calculator for a pure lumpsum investment?
Yes. Simply set the monthly SIP amount to 0 and set the step-up to 0. The calculator will then return only the lumpsum future value using the compound interest formula FV = P x (1 + r)^n. The SIP corpus and related rows will show zero.
Can I use it for a pure SIP without any lumpsum?
Yes. Set the initial lumpsum to 0. The calculator computes only the SIP accumulation, optionally with an annual step-up. This is useful for investors who are starting fresh and have no existing corpus to deploy.
Are these projections guaranteed?
No. This calculator uses a fixed expected return rate to produce an estimate. Actual mutual fund returns fluctuate with markets, fund manager decisions, economic conditions, and time period. Equity funds historically delivered 12-15% CAGR over long periods in India, but individual results vary. Use these projections as a planning guide, not a guaranteed outcome.
Does the calculator account for inflation?
Not directly. The figures shown are nominal (not inflation-adjusted). To get a sense of real purchasing power, you can reduce your expected return rate by the average inflation rate. For example, if you expect 12% returns and 6% inflation, use 6% as your expected return to see the inflation-adjusted (real) corpus.
What expected return rate should I use?
It depends on the type of fund. Large-cap equity funds have historically delivered 11-13% CAGR over 10+ year periods in India; small-cap funds can go higher but with more volatility. Balanced or hybrid funds typically average 9-11%. Debt funds range from 4-8%. A commonly used planning figure for diversified equity funds is 12%, but always stress-test with a lower figure such as 8% to understand the downside scenario.