SIP vs Lumpsum Calculator

Compare investing a sum all at once versus spreading it as a monthly SIP — see both maturity values and how far apart they finish for the same money.

Total amount to invest

Time period

Expected return (p.a.)

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How it works

Lumpsum FV = amount × (1 + r)^n. SIP FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i), where P = amount ÷ months, i = r ÷ 12.

This compares the same total money deployed two ways: invested in full today, or split into equal monthly instalments over the period. A lumpsum keeps every rupee compounding for the whole term, so in a rising market it almost always finishes higher. A SIP holds part of the money as cash early on and feeds it in gradually, giving up some growth in exchange for averaging your entry price and reducing the risk of a badly timed single investment.

Worked example

Deploying ₹12,00,000 over 10 years at 12%: invested as a lump sum it grows to about ₹37.3 lakh, while dripping ₹10,000 a month grows to about ₹23.2 lakh. The lump sum finishes roughly ₹14 lakh ahead, purely because the full amount compounded from the start.

Frequently asked questions

If lumpsum usually wins, why SIP at all?

The comparison assumes a fixed return every year. Real markets fall as well as rise, and a lumpsum invested just before a crash can stay underwater for years. A SIP spreads that risk and also suits people investing from monthly income rather than a pile of cash.

Is this a fair comparison?

It is fair on the same money and return, but the SIP holds part of the amount as un-invested cash early on. In practice that cash could sit in a liquid fund earning a little, which would narrow the gap slightly.

What if I have a lumpsum but fear bad timing?

A middle path is a Systematic Transfer Plan: park the lumpsum in a debt fund and move it into equity monthly, capturing some compounding while still averaging your entry.

Related calculators

SIP Calculator

Project the maturity value of a monthly SIP in mutual funds — total invested, estimated returns and growth year by year.

Lumpsum Calculator

See what a one-time lumpsum investment grows to — maturity value, amount invested and the returns compounding earns over your holding period.

Mutual Fund Returns Calculator

Work out the return on a mutual fund investment — absolute return, annualised return (CAGR) and total gain from what you invested and its current value.

Goal SIP Calculator

Find the monthly SIP you need to reach a target corpus — enter your goal, timeframe and expected return to get the required monthly investment.

Educational estimate only, not investment advice. Mutual-fund and market-linked returns are not guaranteed and past performance does not predict the future. Verify current fund details and consult a SEBI-registered adviser.