SIP & Lumpsum Calculators
These are the most commonly used calculators. They cover three perspectives on the same question: how much will you have, and how much do you need to invest.
SIP Return
Formula: Future Value of a recurring investment with optional annual step-up.
FV = P × [((1 + r)^n - 1) / r] × (1 + r)
Where:
P= monthly investmentr= monthly return rate (annual rate / 12)n= total months
With step-up: Each year, the monthly SIP is multiplied by (1 + step_up_rate). This models salary-linked SIP growth.
Why step-up matters: A ₹10,000 SIP at 12% for 20 years → ₹99L. The same SIP with 10% annual step-up → ₹1.92Cr. The step-up almost doubles the outcome.
Lumpsum Return
Standard compound interest:
FV = P × (1 + r)^n
Where r is the annual return rate and n is years.
Goal Planner
Reverse of the SIP formula — given a target amount, compute the required monthly SIP:
SIP = FV × r / ((1 + r)^n - 1)
Also shows the lumpsum needed today (present value of the goal at the given return rate).
Recommended return assumptions
| Asset | Conservative | Moderate | Aggressive |
|---|---|---|---|
| Nifty 50 index fund | 10% | 12% | 14% |
| Mid/small cap | 11% | 13% | 15% |
| Gold | 8% | 9% | 10% |
| Debt fund | 6% | 7% | 8% |
Use the midpoint for planning. Use the conservative end for stress-testing.
Common mistakes
Using nominal returns without subtracting inflation. A 12% equity return with 6% inflation is a 5.66% real return. For goals in real terms (education, retirement expenses), use the Real Return calculator to think in today's rupees.
Using too short a horizon. Equity works because of compounding over long periods. A 5-year SIP projection looks underwhelming at 12%; a 20-year projection looks remarkable. Time is the dominant variable.