Lump Sum + SIP Returns Calculator with Tax & Inflation
✓ Lump Sum + SIP - Combine both for optimal returns
✓ Step-Up SIP - Increase investments with salary hikes
✓ Tax-Adjusted - See post-tax returns for realistic planning
✓ Inflation Impact - Know real purchasing power
LTCG: 10-12.5% | STCG: 15-20%
Compounded Annual Growth Rate
Total % Gain
After inflation
Time horizon
An Investment Calculator helps you estimate returns on your investments - whether Lump Sum (one-time), SIP (monthly), or both combined. It calculates compound interest, shows tax impact, adjusts for inflation, and provides CAGR (annualized returns).
Our calculator offers three modes - Lump Sum only, SIP only, or Both combined. Features include Step-Up SIP (increase monthly amount yearly), tax-adjusted returns, inflation impact on purchasing power, and year-wise growth tracking for realistic wealth planning.
| Factor | Lump Sum | SIP | Both Combined |
|---|---|---|---|
| Investment Style | One-time large amount | Fixed monthly amount | Both strategies |
| Capital Required | High (₹1L-₹1Cr) | Low (₹500-₹10K) | Medium + Regular |
| Market Timing Risk | High | Low (averaged) | Balanced |
| Returns Potential | Highest (if timed right) | Good (rupee averaging) | Best of both |
| Discipline Required | Low (one decision) | High (monthly) | High |
| Volatility Impact | High stress | Low stress | Moderate |
| Best For | Windfall, bonus, inheritance | Salaried, regular income | Maximum wealth |
| Recommended? | Yes (if surplus) | Yes (always) | Best strategy! |
Step-Up SIP means increasing your monthly investment amount annually. As your salary grows, your investments grow too - typically by 5-15% per year.
Example:
• Year 1: ₹10,000/month
• Year 2: ₹11,000/month (10% increase)
• Year 3: ₹12,100/month (10% increase)
• Year 4: ₹13,310/month (10% increase)
Regular SIP (₹10K fixed)
Total Invested: ₹24 Lakh
Corpus: ₹1.00 Crore
Step-Up SIP (₹10K + 10% yearly)
Total Invested: ₹46.4 Lakh
Corpus: ₹1.72 Crore
72% More Wealth! 🚀
5% Annual Step-Up
Conservative approach, matches inflation
Good for: Stable income, minimal hikes
10% Annual Step-Up
Balanced approach, typical salary hikes
Good for: Most salaried employees
15-20% Annual Step-Up
Aggressive wealth building
Good for: High earners, promotions
Short-Term (≤ 1 Year)
Long-Term (> 1 Year) - BEST
Short-Term (≤ 3 Years)
Long-Term (> 3 Years)
PPF (Public Provident Fund)
ELSS (Equity Linked Savings)
NPS (National Pension Scheme)
| Investment Type | Expected Return | Risk Level | Best For |
|---|---|---|---|
| Savings Account | 3-4% | Very Low | Emergency fund only |
| Fixed Deposit (FD) | 6-7% | Very Low | 1-3 years, capital safety |
| PPF / NSC | 7-7.7% | Very Low | Long-term, tax-free |
| Debt Mutual Funds | 7-9% | Low | 3-5 years, tax efficient |
| Balanced / Hybrid Funds | 9-11% | Moderate | 5-7 years, balanced risk |
| Large Cap Equity Funds | 10-12% | Moderate-High | 7-10 years, stable growth |
| Mid & Small Cap Funds | 12-15% | High | 10+ years, aggressive |
| Sectoral / Thematic Funds | 15-18% | Very High | 10+ years, high risk appetite |
| Gold | 8-10% | Moderate | Inflation hedge, 10% |
| Real Estate | 8-10% | Moderate-High | 10+ years, illiquid |
💡 Portfolio Tip: Mix investments - 60% Equity (12%) + 30% Debt (7%) + 10% Gold (9%) = ~10.5% average return with balanced risk.
Lump Sum: Investing a large amount once - ₹5L, ₹10L, ₹50L at one go. Best when: You have surplus cash (bonus, inheritance, sale proceeds), Markets are low (timing matters), Long investment horizon (10+ years). Pros: Full amount compounds from day 1, simpler to manage. Cons: Market timing risk, needs large capital. SIP (Systematic Investment Plan): Investing fixed amount monthly - ₹5K, ₹10K, ₹25K every month. Best for: Regular salaried income, First-time investors, Market timing uncertainty. Pros: Rupee cost averaging (buy more when low, less when high), disciplined investing, starts with small amounts. Cons: Lower returns if markets rally immediately. Best Strategy: Combine both! Invest lump sum if available + continue SIP monthly for best results.
Step-Up SIP means increasing your monthly SIP amount annually as your income grows. Example: Start with ₹10K/month, increase by 10% yearly - Year 1: ₹10K, Year 2: ₹11K, Year 3: ₹12.1K. Power of Step-Up: Regular ₹10K SIP for 20Y at 12% = ₹1 Cr. Step-Up 10% SIP for 20Y at 12% = ₹1.7 Cr (70% more!). Recommended increase: 5-10% annual step-up (match with salary hike), 10-15% if aggressive wealth building, 15-20% for high earners (₹1L+ income). Start small, step up big - better than starting big and stopping. Pro tip: Set auto step-up with every annual increment - saves effort and ensures discipline.
CAGR (Compound Annual Growth Rate) shows annualized return over time, smoothing out volatility. Formula: CAGR = [(Final Value / Initial Value)^(1/Years) - 1] × 100. Example: Invested ₹10L, became ₹25L in 10 years. CAGR = [(25/10)^(1/10) - 1] × 100 = 9.6%. Good CAGR benchmarks: Savings Account: 3-4% (poor), Fixed Deposits: 6-7% (safe but low), PPF/NSC: 7-7.7% (tax-free, decent), Debt Mutual Funds: 7-9% (moderate), Balanced Funds: 9-11% (good), Large Cap Equity: 10-12% (very good), Mid/Small Cap: 12-15% (excellent but risky), Real Estate: 8-10% (illiquid), Gold: 8-10% (volatile). Target CAGR: Minimum 12% for long-term wealth creation to beat inflation (6%) by comfortable margin.
Equity Funds/Stocks (listed): Short-Term (≤1 year): 20% on gains (STT paid), Long-Term (>1 year): 12.5% on gains above ₹1.25L/year (first ₹1.25L tax-free), No indexation benefit. Debt Funds: Short-Term (≤3 years): As per income tax slab (up to 30%), Long-Term (>3 years): As per slab (no indexation from 2023), Generally higher tax than equity. Tax-Free Options: ELSS (Equity): 80C benefit + 12.5% LTCG after 3 years, PPF: 100% tax-free (EEE status), NSC: Interest taxable but 80C benefit, Tax-free bonds: 100% tax-free interest. Smart Strategy: Hold equity >1 year for LTCG benefit, Harvest ₹1.25L gains yearly (tax-free), Use ELSS for 80C + equity returns, Keep debt in PPF for tax-free returns.
Historical data shows Lump Sum beats SIP in 70% cases IF invested at any random time over 10+ years. But practical reality differs: Market Timing: Nobody knows if markets are high or low - SIP removes this stress. Behavioral Factor: SIP forces discipline - lump sum often sits in savings earning 3%. Risk Profile: Lump sum has higher volatility - can drop 30-50% in crash, SIP averages out. Best Approach - Hybrid Strategy: Have ₹10L? Invest ₹5L lump sum + ₹50K SIP for 10 months (remaining ₹5L). Market crash 30%? Your SIP buys more units at lower price. Market rally? Your lump sum participates fully. Example Results (10 years at 12%): Only Lump Sum ₹10L = ₹31L, Only SIP ₹10K for 120 months = ₹23L, Hybrid (₹5L + ₹5K SIP) = ₹27L. Verdict: Lump sum if you can handle volatility + time market. SIP if regular income + peace of mind. Hybrid for best of both worlds!
Conservative Portfolio (Low Risk, 6-8% return): 70% Debt + 30% Equity - Fixed Deposits (6-7%), PPF (7.1%), Debt funds (7-8%), Large-cap equity (10-12%), Average: 7-8% return, Suitable for: 1-5 years, low risk appetite, capital protection priority. Balanced Portfolio (Moderate Risk, 9-11% return): 50% Debt + 50% Equity - Balanced funds, hybrid funds, flexi-cap, Average: 9-11% return, Suitable for: 5-10 years, moderate risk tolerance, wealth building goals. Aggressive Portfolio (High Risk, 12-15% return): 70% Equity + 30% Debt - Mid-cap, small-cap, sectoral funds, Average: 12-15% return (can be volatile), Suitable for: 10+ years, high risk appetite, retirement/long-term goals. Ultra-Aggressive (Very High Risk, 15-18%): 90% Equity (100% stocks) - Small-cap, international, thematic - Can give 18%+ but also negative years. Rule of Thumb: Expected Return = (Equity % × 12%) + (Debt % × 7%). Be conservative in estimates - better to exceed than disappoint!