SIP vs Lumpsum Comparison
Compare monthly SIP investing against deploying the same total as a one-time lumpsum
Configure Comparison
Growth Comparison
SIP gradual deployment vs Lumpsum full deployment
Metric Comparison
Invested, returns, and total value side by side
SIP Breakdown
Lumpsum Breakdown
Year-by-Year Comparison
SIP vs Lumpsum values each year
| Year | SIP Invested | SIP Value | Lumpsum Value | Difference |
|---|---|---|---|---|
| Year 1 | ₹1.20 L | ₹1.28 L | ₹26.88 L | +₹25.60 L |
| Year 2 | ₹2.40 L | ₹2.72 L | ₹30.11 L | +₹27.38 L |
| Year 3 | ₹3.60 L | ₹4.35 L | ₹33.72 L | +₹29.37 L |
| Year 4 | ₹4.80 L | ₹6.18 L | ₹37.76 L | +₹31.58 L |
| Year 5 | ₹6.00 L | ₹8.25 L | ₹42.30 L | +₹34.05 L |
| Year 6 | ₹7.20 L | ₹10.58 L | ₹47.37 L | +₹36.80 L |
| Year 7 | ₹8.40 L | ₹13.20 L | ₹53.06 L | +₹39.86 L |
| Year 8 | ₹9.60 L | ₹16.15 L | ₹59.42 L | +₹43.27 L |
| Year 9 | ₹10.80 L | ₹19.48 L | ₹66.55 L | +₹47.07 L |
| Year 10 | ₹12.00 L | ₹23.23 L | ₹74.54 L | +₹51.31 L |
| Year 11 | ₹13.20 L | ₹27.46 L | ₹83.49 L | +₹56.02 L |
| Year 12 | ₹14.40 L | ₹32.23 L | ₹93.50 L | +₹61.28 L |
| Year 13 | ₹15.60 L | ₹37.59 L | ₹1.05 Cr | +₹67.13 L |
| Year 14 | ₹16.80 L | ₹43.64 L | ₹1.17 Cr | +₹73.65 L |
| Year 15 | ₹18.00 L | ₹50.46 L | ₹1.31 Cr | +₹80.91 L |
| Year 16 | ₹19.20 L | ₹58.14 L | ₹1.47 Cr | +₹88.99 L |
| Year 17 | ₹20.40 L | ₹66.79 L | ₹1.65 Cr | +₹97.99 L |
| Year 18 | ₹21.60 L | ₹76.54 L | ₹1.85 Cr | +₹1.08 Cr |
| Year 19 | ₹22.80 L | ₹87.53 L | ₹2.07 Cr | +₹1.19 Cr |
| Year 20 | ₹24.00 L | ₹99.91 L | ₹2.32 Cr | +₹1.32 Cr |
Important Note
In a consistently rising market, lumpsum investing typically outperforms SIP because all your capital is deployed from Day 1. However, SIP offers rupee cost averaging during volatile markets, reducing the risk of investing at a market peak. For most investors, SIP is preferred because it aligns with regular income patterns and reduces timing risk.
Calculator results are for illustration purposes only. Actual returns may vary based on market conditions, fund performance, and other factors. Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance does not guarantee future returns.
SIP or lump sum? What actually decides which one wins
This is one of the most common investing questions, and the honest answer is that it depends on two things: whether you have the money now, and what the market does after you invest. A lump sum puts everything to work immediately and enjoys full compounding, so it tends to win when markets rise steadily. A SIP spreads your entry across ups and downs, cutting timing risk, which suits money you save month by month from income.
This calculator runs both paths for the same total amount so you can see the difference for your return and horizon. For a windfall you already hold, a common middle path is a Systematic Transfer Plan — parking the sum in a low-volatility fund and moving it into equity over several months — which keeps most of the compounding while smoothing the entry.
How this calculator works
- 1Enter the amount, expected return and horizon.
- 2The calculator projects a one-time lump-sum investment and an equivalent SIP over the same period.
- 3Compare the final values and the invested-vs-gains split for each.
Frequently asked questions
Does a SIP or a lump sum give higher returns?
Over long rising markets a lump sum often ends higher because it compounds from day one. But it carries more timing risk — a fall right after investing hurts the whole amount. A SIP usually trails a well-timed lump sum but protects you from a badly-timed one. The right choice depends on whether you have the money now and your comfort with timing risk.
When does a lump sum beat a SIP?
A lump sum tends to win when the market rises fairly steadily after you invest, because the full amount compounds for the entire period. It does worse than a SIP when a sharp fall follows soon after the investment. Since nobody can reliably predict which will happen, spreading a large sum via an STP is a common compromise.
Can I combine both?
Yes — many investors run a monthly SIP from their income and add occasional lump sums when they have surplus (a bonus, a maturity). For a large one-time amount, an STP into equity over a few months blends the two: it averages the entry like a SIP while deploying a lump sum you already hold.
Illustrative only. Mutual fund investments are subject to market risks; past performance does not guarantee future returns.
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