Mutual Fund Returns Calculator

Compare SIP and lump sum returns on the same total investment over the same period.

Total amount to invest	$15,000
Expected yearly return	8 %
Years	10 years

Total amount to invest

Expected yearly return

Years

years

Lump sum at the start

$32,384

Investing $15,000 at once grows to $32,384; spreading it as a SIP of $125 a month grows to $23,021, at a steady 8% return.

Same money, two ways

Lump sum$32,384
SIP$23,021

Value over time

Year 10Lump sum $32,384SIP $23,021Point at the chart, or Tab to it and use ← →

Lump sumSIP

About the Mutual Fund Returns Calculator

Enter the total amount, the expected yearly return and the period. The calculator compares investing it all at once with spreading it as a monthly SIP.

With a steady positive return, a lump sum invested on day one always ends higher than the same money fed in monthly, because all of it compounds for longer. In real markets, a SIP can come out ahead when prices fall during the investing period.

The formula

Lump sum: P(1 + r)ⁿ; SIP: monthly × ((1 + i)ᴺ − 1)/i × (1 + i)

Worked example

15,000 over 10 years at 8%

Lump sum on day one: 32,384
As a SIP of 125 a month: 23,021
With steady returns the lump sum wins; falling markets can favour the SIP

Questions people ask

So is lump sum always better?

Only with steady returns; volatility makes SIP's averaging valuable.

What is rupee-cost averaging?

Buying more units when prices are low and fewer when high, which a SIP does automatically.

Sources

SEBI Investor: Mutual funds