Updated Apr 2026 • SIP vs Lump Sum • Inflation-Adjusted
Lump Sum assumes the same total amount (₹12,00,000) invested upfront at the same rate.
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This calculator helps you estimate future investment returns based on the BSE Sensex's historical performance. Select your investment type (SIP or Lump Sum), enter your amount, choose a duration, and adjust the expected return rate. The calculator uses standard compound interest formulas to project your wealth growth.
A SIP involves investing a fixed amount every month. The calculator compounds each monthly installment at the given annual rate. SIP benefits from rupee cost averaging — during market dips, your fixed amount buys more units, lowering your average purchase cost over time. This is the preferred method for salaried individuals building long-term wealth through Sensex index funds or ETFs.
Lump Sum investing means deploying your entire capital at once. Historically, Lump Sum has outperformed SIP over long periods because the full amount benefits from compounding from day one. However, it carries higher timing risk — investing at a market peak can lead to poor short-term returns. The comparison feature shows both approaches side by side so you can make an informed decision.
The BSE Sensex was established in 1986 with a base value of 100. As of 2026, it trades above 78,000 — representing a remarkable long-term CAGR of approximately 13-14% over its entire history. However, returns are not linear. The Sensex experienced significant drawdowns during the 2008 global financial crisis (-52%), the 2020 COVID crash (-38%), and various other corrections.
For investors using this calculator, the key insight is: the longer you stay invested, the more predictable your returns become. While 1-year returns can range from -30% to +80%, 15-year rolling returns have historically never been negative for the Sensex. This makes duration your strongest ally when investing in Indian equities.
India's Consumer Price Index (CPI) inflation has averaged 5-7% over the past two decades. A Sensex return of 12% nominal translates to roughly 5.7% real return after 6% inflation. The calculator shows your corpus in today's purchasing power, which is critical for retirement and long-term financial planning. A corpus of 1 crore in 20 years may only buy what 31 lakh buys today.
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Open Trading AccountThe BSE Sensex has delivered approximately 14% CAGR over the past 20 years. However, returns vary significantly by entry point. During bull markets, short-term returns can exceed 25%, while bear markets may show negative returns for 1-2 years. Long-term SIP investors in Sensex have historically earned 12-15% annualized returns after accounting for market cycles.
SIP reduces timing risk through rupee cost averaging — you buy more units when markets are low and fewer when high. Historically, Lump Sum investing in Sensex has produced slightly higher absolute returns over 10+ year periods because markets trend upward. However, SIP is better for salaried investors who invest monthly income, and it provides psychological comfort during market downturns. For large windfalls, a combination of partial lump sum plus SIP over 6-12 months is often recommended.
Investing INR 10,000 per month via SIP in a Sensex index fund for 10 years at the historical average return of ~12% CAGR would give you approximately 23.2 lakh. Your total investment would be 12 lakh (10,000 x 120 months), and the expected returns would be around 11.2 lakh. Adjusted for 6% inflation, the real value would be approximately 13 lakh in today's purchasing power.
India's average CPI inflation has been around 5-7% over the past two decades. If Sensex delivers 12% nominal returns and inflation is 6%, your real return is approximately 5.66%. This means 1 crore accumulated over 20 years would have the purchasing power of roughly 31 lakh in today's money. Always consider inflation-adjusted returns when planning long-term financial goals.
Compounding shows dramatic acceleration after the 10-year mark. In a typical Sensex SIP at 12% returns, your money roughly doubles in the first 7-8 years, but the second doubling takes only 5-6 more years. By year 15-20, annual returns on your accumulated corpus can exceed your total annual investment. This is why long-term investors who stay invested for 15-25 years see the most significant wealth creation — the last 5 years of a 20-year SIP often generate more wealth than the first 10 years combined.
This calculator provides estimates based on assumed constant annual returns. Actual Sensex returns vary year to year and past performance is not indicative of future results. The calculator does not account for taxes, fund expense ratios, or transaction costs. Content is for educational purposes only. Consult a qualified financial advisor before making investment decisions.