SIP vs Lumpsum Calculator

Use this free SIP vs lumpsum calculator to compare two ways of investing the same total amount: all at once today, or in equal monthly instalments over the same period. Enter the total amount, an expected return, the period, and what the money earns while it waits to be invested.

How this SIP vs lumpsum calculator works

In the lumpsum route, the full amount is invested today and grows for the whole period. In the SIP route, the same amount is divided into equal monthly instalments. Each month one instalment moves into the investment, and the money still waiting earns the lower return you enter, such as the return on a liquid fund. Both routes use the same monthly compounding, so the comparison is like for like. For example, ₹12 lakh invested for 10 years at an assumed 12% would grow to about ₹39.6 lakh as a lumpsum. Spread over 120 monthly instalments of ₹10,000, with the waiting money earning 5%, it would grow to about ₹27.4 lakh. The result is an illustration, not a forecast.

How to read the result

The lumpsum comes out ahead in this example mainly because every rupee starts earning the full return from day one, while in the SIP route most of the money waits for years. That is what the maths gives when markets rise steadily. Real markets do not, and a lumpsum put in just before a fall can do worse than a SIP, which buys at many different prices. Try a lower return, or a different return on the waiting money, and see how the gap changes.

What this calculator does not include

The result is before taxes, exit loads and fund expenses, and it assumes the same return in every year. It cannot show the ups and downs that make the real comparison so unpredictable. It also treats the whole amount as available today. If you earn the money month by month, a SIP is the only route open to you, and this comparison does not apply.

अक्सर पूछे जाने वाले सवाल (FAQs)

Is SIP or lumpsum better?

Neither is better for everyone. If the money is available today and your time horizon is long, investing it earlier gives it more time to grow, and the calculator shows that. A SIP spreads your entry over many months, which many investors find easier to stay with, and it suits money that arrives monthly. The right choice depends on your cash flow, your time horizon and how you react to market falls. We would be happy to talk it through with you.

What is the “return on money waiting to be invested”?

In the SIP route, most of the total amount sits uninvested for a while. This field lets you say what it earns meanwhile, for example in a savings account or a liquid fund. Setting it to zero shows the toughest case for the SIP route, and a higher figure narrows the gap.

Is the return shown guaranteed?

No. Mutual fund returns are market-linked and can be higher or lower than the rate you enter. Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Learn more on the AMFI investor awareness site.

What if I want to invest a lump sum in stages?

Many investors move a lump sum into equity in stages through a Systematic Transfer Plan (STP), which the SIP route in this calculator resembles. For a monthly SIP with no lump sum, use our SIP calculator, and for the one-time route see our Lumpsum calculator.