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SIP vs Lumpsum Calculator

Enter a total amount you have today, or the monthly SIP you plan, along with an assumed return and a period. The calculator puts exactly the same money into both routes and shows what each could grow to, year by year. It also explains plainly why the lumpsum always wins in a calculation like this, and what that leaves out.

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Calculator and results

Investing ₹6,00,000 today at an assumed 12% grows to ₹19,80,232 in 10 years, while a SIP of ₹5,000 a month (the same total) reaches ₹11,61,695, ₹8,18,537 less.

Either way, both sides put in exactly the same money.

₹

As a SIP this is ₹5,000 a month.

%

One constant rate for both. An assumption, not a promise.

Whole years. A part year is rounded.

Lumpsum value

₹19,80,232

₹6,00,000 invested today

SIP value

₹11,61,695

₹5,000 a month for 120 months

Lumpsum ahead by

₹8,18,537

Money put in, each side

₹6,00,000

Lumpsum gain

₹13,80,232

SIP gain

₹5,61,695

Why the lumpsum wins here

With one steady return, money invested earlier always earns more, so the lumpsum ends ahead whenever the return is above zero. A SIP's real advantage is buying more units when prices fall (rupee cost averaging), which only shows up when returns go up and down. No constant-return calculator can show it, and nobody knows the path in advance.

SIP value vs lumpsum value
After 10 years: sip value ₹11,61,695, lumpsum value ₹19,80,232.₹0₹5 L₹10 L₹15 L₹20 LYr 0246810
Year 10SIP value ₹11.62 LLumpsum's lead ₹8.19 LLumpsum value ₹19.8 L
Year by year
Year by year
YearSIP invested to dateSIP valueLumpsum valueDifference
1₹60,000₹64,047₹6,76,095₹6,12,048
2₹1,20,000₹1,36,216₹7,61,841₹6,25,625
3₹1,80,000₹2,17,538₹8,58,461₹6,40,923
4₹2,40,000₹3,09,174₹9,67,336₹6,58,161
5₹3,00,000₹4,12,432₹10,90,018₹6,77,586
6₹3,60,000₹5,28,785₹12,28,260₹6,99,474
7₹4,20,000₹6,59,895₹13,84,034₹7,24,139
8₹4,80,000₹8,07,633₹15,59,564₹7,51,931
9₹5,40,000₹9,74,108₹17,57,355₹7,83,248
10₹6,00,000₹11,61,695₹19,80,232₹8,18,537

Saved scenarios stay in this browser only. No sign-up.

Lumpsum value

₹19,80,232

SIP ₹11,61,695
This is a projection from a return you assume, not a forecast. Real market returns vary from year to year, and that variation is exactly what decides whether a SIP or a lumpsum does better in practice.
What it is:
A calculator that compares investing a sum all at once with spreading the same sum as a monthly SIP.
What it calculates:
The final value of the lumpsum and of the SIP, the gain on each, the difference between them, and both values year by year.

Key Assumptions

  • One constant annual return applies to both routes, every year.
  • SIP instalments are invested at the start of each month; both sides compound monthly at the annual return divided by 12.
  • Money not yet invested in the SIP earns nothing.
  • No expense ratio, exit load or tax is deducted.

How does the SIP vs Lumpsum Calculator work?

Both routes get the same money. If you enter a total, the lumpsum is that total invested today and the SIP is the total divided by the number of months. If you enter a monthly SIP, the lumpsum is that SIP multiplied by the number of months, invested on day one.

The SIP side uses the same engine as the CalcMate SIP calculator: each instalment is invested at the start of its month and earns a monthly rate equal to the annual return divided by 12. The lumpsum side compounds at the same monthly rate, so the assumed return means the same thing on both sides. (The standalone lumpsum calculator compounds once a year, so it shows a slightly lower figure for the same inputs.)

With one constant positive return, the lumpsum always ends higher for any whole number of years. The reason is time in the market: the lumpsum has every rupee working from the first day, while a SIP's last instalment is invested only in the final month. On average, SIP money is invested for about half the period.

What the calculator cannot show is the real argument for a SIP. Markets do not deliver a steady return. When prices fall, a fixed SIP instalment buys more units, and when they rise it buys fewer, which is called rupee cost averaging. Whether that beats a lumpsum depends on the path the market takes, which nobody knows in advance. A constant-return model has no path, so it cannot capture this.

In this model the money waiting to go into the SIP earns nothing. If you do have the full amount today but want to enter the market gradually, an STP, which parks the money in a liquid or debt fund and transfers a fixed amount each month, is the closer comparison.

SIP vs Lumpsum Calculator formula

Lumpsum FV = P x (1 + i)^n; SIP FV = S x [((1 + i)^n - 1) / i] x (1 + i)

P
= lumpsum invested today = S x n
S
= monthly SIP instalment
r
= assumed annual return as a decimal
i
= monthly rate = r / 12
t
= period in years
n
= number of monthly instalments = t x 12

At a 0% return both formulas give back exactly the money put in, so the two routes tie.

SIP vs Lumpsum Calculator: worked example

₹6,00,000 at an assumed 12% for 10 years: all today, or ₹5,000 a month

Lumpsum invested today
₹6,00,000
Lumpsum value after 10 years
₹19,80,232
Monthly SIP for 120 months
₹5,000
SIP value after 10 years
₹11,61,695
Lumpsum ahead by
₹8,18,537

SIP vs Lumpsum Calculator: frequently asked questions

Is a lumpsum always better than a SIP?
Only in a calculation with a steady return, like this one. In real markets the answer depends on what prices do after you invest. If the market falls soon after a lumpsum goes in, a SIP of the same money spread over the next months can end ahead, because its later instalments buy units cheaply. If the market rises steadily, the lumpsum wins. Nobody can tell in advance which path is coming.
Why does the SIP end so far behind here?
Because of time. A lumpsum has the whole amount invested for the whole period. A SIP's first instalment is invested for the full period but its last one for only a month, so on average SIP money is invested for about half the time. At an assumed 12% over 10 years, that gap adds up to lakhs on a few lakh rupees.
What is rupee cost averaging?
When you invest a fixed rupee amount every month, you buy more units when the price is low and fewer when it is high. Your average cost per unit ends up below the simple average of the prices you paid on. It reduces the risk of putting everything in at a peak. It does not guarantee a profit or protect against a market that keeps falling.
I earn monthly. Does this comparison apply to me?
Not really. A lumpsum is only an option if you already have the money. If your savings arrive with your salary each month, a SIP is simply how that money gets invested, and the question is how much and for how long rather than SIP versus lumpsum. This calculator is for people deciding what to do with a sum they already hold.
What if I want to invest a lumpsum gradually?
That is what a Systematic Transfer Plan does. You put the lumpsum in a liquid or debt fund and transfer a fixed amount into an equity fund each month, so the waiting money earns something instead of sitting idle. The STP calculator models that.
Which return should I assume?
Use a figure you can defend and test lower ones too. The ranking of lumpsum over SIP does not change with the rate in this model, but the size of the gap does: the higher the assumed return, the more the extra time in the market is worth.

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Reviewed by Pradipta Ray, MBA (Finance) · Updated