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SIP vs Lumpsum Calculator

Most first-time investors face the same fork: commit a large amount today, or spread the outlay across monthly instalments. This sip vs lumpsum calculator answers with numbers instead of rules of thumb, holding the expected return identical for both routes so the comparison isolates timing and compounding.

Enter values

The one-time amount you could invest in one go

Same total outlay as the lumpsum when × 12 × years

Applied identically to both routes

Results update as you type.

Results

Lumpsum route is ahead by
₹16,37,073.51
Lumpsum future value
₹39,60,464.27
SIP future value
₹23,23,390.76
Lumpsum invested today
₹12,00,000.00
SIP invested over time
₹12,00,000.00
09.9L19.8L29.7L39.6LY1Y3Y5Y7Y9
  • Lumpsum route
  • SIP route

How is the SIP vs Lumpsum calculated?

Enter the lumpsum you could invest today, the SIP instalment you would pay instead, the expected annual return and the term in years. The lumpsum compounds as a single balance from month one, while each instalment compounds only for the months left after it is paid. You get both future values, both totals actually invested, and a headline figure naming the route that is ahead plus how many rupees separate them, with a chart of the two curves.

Formula

lumpsum value = L × (1 + i)^n

SIP value = P × ((1 + i)^n − 1) ÷ i × (1 + i)

where L = lumpsum amount, P = monthly instalment, i = expected annual return ÷ 12 ÷ 100 and n = years × 12. Both routes compound at the same monthly rate, so timing of entry is the only difference.

Example

Take ₹12,00,000 invested at once at 12%: after ten years it is worth about ₹39,60,464. The same total paid as ₹10,000 a month for 120 instalments reaches only about ₹23,23,391, so the lumpsum route finishes ₹16,37,074 ahead. Every one of its rupees compounded for the full term, while the SIP's later instalments barely got started.

Things to remember

Neither route is universally better; the winner depends on whether surplus cash exists today and how comfortable you are watching an initial investment swing before it compounds. Use this calculator to size the gap at your own horizon, then weigh early deployment against keeping cash in reserve.

Frequently Asked Questions

Which is better for ten years, lumpsum or SIP?

With the same total money and a steady return, the lumpsum wins — ₹12,00,000 at once beats ₹10,000 a month over ten years at 12% by more than ₹16 lakh. A SIP still makes sense when returns are volatile or when investing the full amount today would empty your emergency fund.

Does this comparison invest the same total amount?

Yes, when you enter a lumpsum equal to the monthly instalment multiplied by 12 and by the years, both routes put exactly the same cash to work. The calculator displays both totals so you can confirm they match before reading the gap as a like-for-like result.

When does a SIP beat a lumpsum investment?

When markets fall soon after a lumpsum goes in and recover slowly, monthly instalments purchase cheaper units and can lift the SIP's final value above the one-time investment. This projection holds the return constant, so it shows the mechanical advantage of entering early rather than that averaging effect.

What return rate should I assume for both routes?

Use one realistic figure for both sides: 10–12% for a diversified equity fund and 6–8% for debt. The winner rarely changes with the rate itself, but the gap between them widens as the return rises, because money already in the market compounds faster at every level.

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