SIP vs Lumpsum Calculator
Enter a lumpsum and a monthly SIP, and see which one ends up bigger. Both grow at the same return, so the only difference is how and when the money goes in.
By Hardik Vegad, founder of WealthGamma · Last updated
Lumpsum comes out ahead by
₹7.43L
Over 10 years at 12% a year.
SIP
₹5,000/mo
Invested
₹6,00,000
Total value
₹11,20,179
₹6.26L in today's money
Lumpsum
₹6,00,000
Invested
₹6,00,000
Total value
₹18,63,509
₹10.41L in today's money
Lumpsum and SIP, year by year
- Lumpsum
- SIP
Year-by-year tableShowHide
| Year | Lumpsum | SIP | Put into the SIP | Gap |
|---|---|---|---|---|
| 1 | ₹6,72,000 | ₹63,832 | ₹60,000 | ₹6,08,168 |
| 2 | ₹7,52,640 | ₹1,35,325 | ₹1,20,000 | ₹6,17,315 |
| 3 | ₹8,42,957 | ₹2,15,396 | ₹1,80,000 | ₹6,27,560 |
| 4 | ₹9,44,112 | ₹3,05,076 | ₹2,40,000 | ₹6,39,035 |
| 5 | ₹10,57,405 | ₹4,05,518 | ₹3,00,000 | ₹6,51,887 |
| 6 | ₹11,84,294 | ₹5,18,013 | ₹3,60,000 | ₹6,66,281 |
| 7 | ₹13,26,409 | ₹6,44,007 | ₹4,20,000 | ₹6,82,402 |
| 8 | ₹14,85,578 | ₹7,85,120 | ₹4,80,000 | ₹7,00,458 |
| 9 | ₹16,63,847 | ₹9,43,167 | ₹5,40,000 | ₹7,20,680 |
| 10 | ₹18,63,509 | ₹11,20,179 | ₹6,00,000 | ₹7,43,329 |
SIP or lumpsum: which gives better returns?
If you have the money today, a lumpsum usually ends higher, because every rupee is invested from day one. ₹6 lakh at 12% for 10 years grows to ₹18.64L as a lumpsum. The same ₹6 lakh as a ₹5,000 monthly SIP grows to ₹11.2L.
A SIP wins in one situation: when the market falls soon after you'd have put the lumpsum in. The SIP keeps buying at the lower prices; the lumpsum takes the whole fall. Nobody knows in advance which year that will be.
How much more does a lumpsum make?
The longer the period, the wider the gap, because the lumpsum's head start keeps compounding:
| Period | Lumpsum | SIP | Lumpsum ahead by |
|---|---|---|---|
| 5 years | ₹10.57L | ₹8.11L | ₹2.46L (30%) |
| 10 years | ₹18.64L | ₹11.2L | ₹7.43L (66%) |
| 20 years | ₹57.88L | ₹23L | ₹34.88L (152%) |
₹6 lakh, 12% a year. The SIP invests ₹6 lakh in equal monthly parts across the whole period.
What does spreading a lumpsum over a year cost?
Less than most people expect. Spreading ₹6 lakh over 12 months, with the waiting money in a liquid fund earning 6%, ends ₹65,214 behind investing it all on day one over 10 years. With the waiting money idle, the gap is ₹93,384.
| Spread over | Grows to | Behind the lumpsum by |
|---|---|---|
| 6 months | ₹18,33,192 | ₹30,317 |
| 1 year | ₹17,98,295 | ₹65,214 |
| 2 years | ₹17,33,080 | ₹1,30,429 |
| 3 years | ₹16,73,521 | ₹1,89,988 |
₹6 lakh, 10 years, 12% a year; waiting money earns 6%. Lumpsum grows to ₹18,63,509.
Think of that gap as insurance against investing everything the week before a crash. A short spread keeps it cheap; spreading over several years makes it expensive.
How is this SIP vs lumpsum comparison worked out?
Both sides grow at the same yearly return. The lumpsum is invested on day one. The SIP puts in its monthly amount at the start of each month for as long as you set, and that money then stays invested to the end.
Many SIP calculators compound at the annual return ÷ 12 every month, which works out to more than the annual return (12% becomes about 12.7% a year). That quietly flatters the SIP. Here both sides use the same effective rate, so the comparison is fair.
When should you choose a SIP over a lumpsum?
| SIP | Lumpsum | |
|---|---|---|
| Money needed | A little every month | All of it today |
| Timing risk | Spread across many prices | All at one price |
| With steady returns | Ends lower | Ends higher |
| Best for | Salary, building a habit | Bonus, maturing FD, sale proceeds |
Most people don't pick one: a SIP runs from the salary, and a lumpsum goes in when a bonus lands. For a large lumpsum, a systematic transfer plan (STP) over 6 to 12 months splits the difference.
What does a SIP vs lumpsum calculator not account for?
It assumes the same return every year, which is exactly the thing that decides the real winner. It leaves out:
- The order of returns. A crash in year one favours the SIP; a rally favours the lumpsum.
- Tax. Equity fund gains held over a year are taxed at 12.5% above ₹1.25 lakh a year. Each SIP instalment has its own one-year clock.
- Exit loads. Some funds charge a fee on units redeemed within a set period.
To run either side on its own, use the SIP calculator or the lumpsum calculator.
Frequently asked questions
Is SIP or lumpsum better for returns?
If you have the money today, a lumpsum usually ends higher because all of it is invested for longer. ₹6 lakh at 12% for 10 years grows to ₹18.64L as a lumpsum and ₹11.2L as a ₹5,000 monthly SIP.
When does a SIP beat a lumpsum?
When the market falls soon after you'd have invested the lumpsum. A SIP buys at the lower prices; a lumpsum takes the whole fall. With steady returns, the lumpsum always wins.
Should I invest a lumpsum all at once or spread it?
Spreading it over a year costs little: about ₹65,214 on ₹6 lakh over 10 years, if the waiting money earns 6%. That's the price of not putting it all in at a peak.
What is an STP?
A systematic transfer plan moves a fixed amount every month from a liquid or debt fund into an equity fund. It's the usual way to spread a lumpsum while the rest keeps earning.
Why does this calculator show a lower SIP value than others?
Many SIP calculators compound monthly at the annual return ÷ 12, which works out to more than the annual return. Here both sides use the same yearly return, so neither gets a hidden edge.
Can I do both a SIP and a lumpsum?
Yes, and many investors do: a SIP from monthly income, plus a lumpsum when a bonus or a maturing FD arrives.