Calculate Mutual Fund Returns

Calculate mutual fund returns on SIP or lump sum investments. Use our free mutual fund calculator to project wealth growth,

compare fund scenarios, and plan long-term financial goals.

Your Investment Budget

Same total budget, two strategies: invest it all today vs spread it monthly. See which compounds harder.

Total Amount to Invest (₹)

The total you'll deploy either as one lumpsum today or spread as monthly SIPs.

Investment Duration (Years)

For SIP, this is also the number of months you'll spread the budget over (years × 12).

Expected Annual Return (% p.a.)

Equity MFs typically 10–14%; debt MFs 6–8%; index funds 11–13% historically.

Inflation Rate (%)

India's long-term CPI is around 5–7%. Used for real return rate metrics.

Monthly SIP Equivalent

₹0

Total ÷ (Years × 12)

The Verdict

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Lumpsum Path

Invest the full amount today, hold for the duration.

₹0

—×

SIP Path

Spread monthly over the duration.

₹0

—×

Side-by-Side Breakdown

Metric	Lumpsum	SIP	Difference

Growth Trajectories

Both curves end at their respective Future Values. The gap shows compounding's head start — lumpsum money has been growing since day 1.

Key Insights

Year-by-Year Comparison

Year	Lumpsum Value	SIP Value	Difference	LP Multiple	SIP Multiple

Advanced Metrics

Beneath the headline numbers — these reveal what's really happening.

Real Return Rate

Nominal return after inflation (same for both)

Effective Monthly Rate

For SIP: (1 + r)^1/12 − 1

Doubling Time (Lumpsum)

— yrs

At this rate, principal doubles every

A breakdown of Lumpsum vs SIP and the trade-offs each strategy implies.

1. The Same Total Budget, Two Timing Strategies

You decide a total amount to invest — say ₹12 lakh over 10 years. The choice: deploy it all in one shot today (Lumpsum), or spread it evenly month by month (SIP). Both strategies put the same total rupees in, but the timing differs profoundly. Lumpsum money is exposed to compounding from day 1; SIP money trickles in over time, so each rupee gets less time to grow.

2. The Two Formulas

Lumpsum: FV = P × (1+r)ⁿ. Annual compounding on the entire principal for the full duration.

SIP: FV = SIP × [((1+r_m)¹²ⁿ − 1) / r_m] × (1+r_m) where r_m = (1+r)^1/12 − 1. This is the annuity-due formula with the effective monthly rate. We use the effective rate (not the simple r/12) because it correctly accounts for compounding — this matches what platforms like Groww and Coin display.

3. Why Lumpsum Wins on Paper

At a constant, positive rate of return, Lumpsum will always beat SIP for the same total investment. Why? Because all your money has been growing since month 1. With a SIP, your final installment in month 120 has had zero time to compound — it just sits there at face value.

4. So Why Do Real Investors Choose SIPs?

Three reasons SIPs dominate in practice, despite losing this theoretical comparison:

(a) Rupee-cost averaging. Real markets aren't constant-rate — they go up and down. SIPs buy more units when prices are low, fewer when high, which can produce better returns than a single mistimed lumpsum during volatile periods.

(b) Behavioural discipline. SIPs automate investing. They remove the timing question (“is this a good time to invest?”) and force consistency.

(c) Capital availability. Most people don't have ₹12L sitting in a bank account. SIPs let you invest from monthly income.

This calculator assumes a constant rate (best-case for Lumpsum). In a real market with volatility, the gap typically shrinks significantly — and SIPs sometimes win.

5. Tax & Real Value

Both paths apply a flat 12.5% LTCG rate on gains. The Real Value column shows the future amount in today's purchasing power (FV ÷ (1+inflation)ⁿ).

Caveats & Disclaimer

Returns are illustrative. Mutual fund investments are subject to market risk; past performance does not guarantee future results. The constant-rate model is a simplification — in reality, returns vary year to year. The 12.5% LTCG assumption applies to equity/equity-oriented holdings held longer than 1 year. SIP tax in reality is calculated per installment based on holding period. Consult a financial advisor for personalised guidance.