SIP vs Lumpsum Calculator
Enter a total amount, an expected return and a period. You see what happens if you invest it all today, and what happens if you spread the same total across monthly instalments.
The same rate is used for both. An assumption, not a forecast.
Lump sum ends higher
₹14,03,627
Same total money, same assumed return
- Lump sum of ₹12.00 L today
- ₹37,27,018
- SIP of ₹10,000 a month
- ₹23,23,391
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Year by year
| Year | Lump sum | SIP |
|---|---|---|
| Year 1 | ₹13,44,000 | ₹1,28,093 |
| Year 2 | ₹15,05,280 | ₹2,72,432 |
| Year 3 | ₹16,85,914 | ₹4,35,076 |
| Year 4 | ₹18,88,223 | ₹6,18,348 |
| Year 5 | ₹21,14,810 | ₹8,24,864 |
| Year 6 | ₹23,68,587 | ₹10,57,570 |
| Year 7 | ₹26,52,818 | ₹13,19,790 |
| Year 8 | ₹29,71,156 | ₹16,15,266 |
| Year 9 | ₹33,27,695 | ₹19,48,215 |
| Year 10 | ₹37,27,018 | ₹23,23,391 |
- Both options put in the same total. A lump sum is invested for longer, so with a steady positive return it usually ends higher. In real markets the return varies, and a monthly plan spreads when you buy. This is arithmetic at a constant rate, not advice.
What this comparison does and does not show
Both options put in the same total money. The lump sum starts working on day one, so at a steady positive return it ends higher than instalments that are invested later.
That is arithmetic at a constant return. Real markets rise and fall, and spreading purchases over time changes when you buy, which this simple model does not capture.
If you do not have the whole amount today, the comparison is academic. A SIP is a way to invest as you earn.
The formula
Lump sum value = amount × (1 + r)^years. SIP value = (amount ÷ months) × ((1 + i)^months − 1) ÷ i × (1 + i), where i is the monthly rate.
Common questions
Is SIP or lumpsum better?
At a constant positive return a lump sum ends higher, because it is invested for longer. Real returns vary, and the better choice depends on when you have the money and how you feel about risk.
Why does the lump sum win here?
Because every rupee of it is invested from the first day, while SIP instalments wait to be invested.
Does this predict real results?
No. It uses one fixed return for both. Markets do not move in a straight line.
Is this financial advice?
No. Talk to a qualified adviser for decisions about your money.
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