SIP vs Lumpsum Calculator

Compare wealth compounding outcomes for a one-time lumpsum vs an equivalent systematic monthly SIP.

Reviewed for Budget 2025 • Last updated 21 June 2026 • by Sandesh D.

Comparison Parameters

Total Capital to Invest₹12,00,000
The total amount deployed under both options
₹
Equivalent to a monthly SIP of **₹10,000** for 10 years.
Expected Return (% p.a.)12%
Assumed annual growth rate
%
Time Period (Years)10 Years
Investment compounding duration
Years

Side-by-Side Comparison

Lumpsum Value₹37,27,018
SIP Value₹23,23,391
Lumpsum Maturity Value₹37,27,018
SIP Maturity Value₹23,23,391
Lumpsum Wins By₹14,03,627
Note: Lumpsum earns more here because the entire ₹12,00,000 compounds for all 10 years, whereas the SIP option starts at ₹10,000 in month 1 and slowly scales up the deployed capital over time.
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Calculation Methodology & Rules

The SIP vs Lumpsum Calculator compares how the same total amount of money behaves when deployed all at once (lumpsum) versus spread out monthly (SIP) over the same period. Read our full decision framework: SIP vs Lumpsum: Which Actually Wins?.

Comparison Methodology

  • Total Budget (A): The total capital you want to invest.
  • Lumpsum Model: The entire amount (A) is invested on day one and compounded annually for the specified number of years.
  • SIP Model: The budget (A) is divided equally into monthly installments. For a tenure of Y years, the monthly SIP is:
    Monthly SIP = A / (Y × 12)
    These installments are compounded monthly.

Balanced Non-Advisory Market Note

In a steadily rising market (bull market), lumpsum investments usually outperform SIPs because the entire amount starts growing immediately. However, if the market falls or remains volatile after you invest, a SIP can outperform a lumpsum by allowing you to acquire more investment units at lower prices (rupee-cost averaging).

For detailed rules, formulas, references, and official guidelines, see the complete Ganakam Calculation Methodology.

Frequently Asked Questions

It depends on your cash flow and market conditions. Lumpsum investing typically yields higher returns in steadily rising markets because all your money compounds over the entire duration. SIP is better if you receive a monthly salary, or want to mitigate the risk of entering the market at a temporary peak (rupee-cost averaging).

Calculations assume a constant positive annual return. Because a lumpsum investment starts compounding the entire principal amount from day one, it benefit from more 'time in the market' than a SIP, where contributions are spread out over several years.

A SIP (Systematic Investment Plan) instills disciplined saving habits and reduces timing risk. When markets fall, your SIP buys more mutual fund units at lower prices, which can lead to higher wealth creation when the market recovers.