Mutual Fund Calculator
Compare SIP (systematic investment plan) vs lump sum returns with year-by-year growth projections.
About this tool
A mutual fund calculator is an essential tool for investors comparing different investment strategies. This calculator allows you to simulate and compare the returns of a Systematic Investment Plan (SIP)—where you invest a fixed amount regularly—against a lump sum investment, helping you understand which strategy might better suit your financial goals and risk tolerance.
To use this tool, enter your initial investment amount (for lump sum) or monthly investment (for SIP), expected annual return rate, and investment duration in years. The calculator generates year-by-year growth projections showing how your money compounds over time, displaying both the invested capital and earned returns side by side so you can directly compare outcomes.
Frequently Asked Questions
Code Implementation
def lump_sum_future_value(principal: float, annual_rate: float, years: int) -> float:
"""Calculate future value of a lump sum investment."""
return principal * (1 + annual_rate / 100) ** years
def sip_future_value(monthly: float, annual_rate: float, years: int) -> float:
"""Calculate future value of SIP (Systematic Investment Plan)."""
r = annual_rate / 12 / 100 # monthly rate
n = years * 12 # total months
if r == 0:
return monthly * n
return monthly * ((1 + r) ** n - 1) / r * (1 + r)
# Example
principal = 100_000
monthly_sip = 5_000
annual_return = 12 # %
years = 10
ls_value = lump_sum_future_value(principal, annual_return, years)
sip_value = sip_future_value(monthly_sip, annual_return, years)
sip_invested = monthly_sip * 12 * years
print(f"Lump Sum: ₹{principal:,.0f} → ₹{ls_value:,.0f} (returns: ₹{ls_value-principal:,.0f})")
print(f"SIP: ₹{sip_invested:,.0f} invested → ₹{sip_value:,.0f} (returns: ₹{sip_value-sip_invested:,.0f})")Comments & Feedback
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