Lump Sum vs SIP
Which works better -- investing all at once or spreading it monthly?
Total amount you want to invest (Rs)
Monthly equivalent (for SIP): ₹5.00 K/mo
See what each strategy's final corpus is actually worth in today's purchasing power.
Expected yearly return rate (%)
Number of years you will stay invested
Lump Sum
Maturity Value
₹18.64 L
Total Invested
₹6.00 L
Returns Earned
₹12.64 L
Monthly SIP
Maturity Value
₹11.62 L
Total Invested
₹6.00 L
Returns Earned
₹5.62 L
Lump Sum vs SIP -- Wealth Over Time
How the Lump Sum vs SIP Calculator Works
If you have a fixed amount to invest, is it better to put it all in today (lump sum) or spread it out as monthly instalments (SIP) over the same period? This calculator runs both strategies side by side, using the same total investable amount and the same expected annual return, so the comparison is fair -- the only variable is timing.
The lump-sum simulation compounds the full amount from day one. The SIP simulation divides the same total into equal monthly instalments spread across the chosen duration, so less money is invested -- and compounding -- early on. In a rising market, lump sum tends to win because more money is exposed to growth for longer; in a falling or volatile market, SIP tends to do better because it buys more units when prices dip (rupee-cost averaging).
Lump Sum: FV = P × (1 + r)ⁿ | SIP: FV = A × [ ((1+i)ⁿ − 1) ÷ i ] × (1+i), where i = r ÷ 12Worked example
₹6,00,000 invested as a lump sum vs. the same ₹6,00,000 spread as ₹5,000/month for 10 years, both at an assumed 12% annual return -- the calculator shows exactly how much each path is worth at the end, and which one comes out ahead for the return rate you enter.
Frequently asked questions
Which one actually gives higher returns -- lump sum or SIP?
It depends entirely on the market path during your investment period, which nobody knows in advance. Mathematically, lump sum wins whenever the market rises steadily, because your full amount compounds for the whole duration. SIP tends to close the gap or win when the market is volatile or falls before recovering, since it buys more units at lower prices along the way.
I don't have a lump sum lying around -- does this calculator still help me?
Yes -- it's equally useful the other way round: if you do come into a lump sum later (bonus, maturity of an FD, inheritance), this comparison helps you decide whether to invest it immediately or stagger it in over several months instead.
Does this account for the fact that SIP money not yet invested might sit in a savings account?
No -- this calculator assumes the lump sum amount is either invested immediately in full, or invested in equal instalments per the SIP schedule. It does not model interim returns on the uninvested SIP balance; treat both results as a comparison of two investment strategies, not a complete cash-flow plan.
Can I see these results adjusted for inflation?
Yes -- switch on 'Show real (inflation-adjusted) value?' and enter an expected inflation rate. Each strategy's nominal maturity value is then deflated back to today's purchasing power (dividing by (1 + inflation)^years), shown alongside the headline number, so you can see what the final corpus is actually worth rather than just what the statement will show.