SIP vs. Lumpsum Comparison
Compare investing a fixed amount every month with investing the same total in one go.
SIP vs. Lumpsum Comparison
Total Contributed (each)
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Lumpsum Invested at Start
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SIP Final Value
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Lumpsum Final Value
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Lumpsum minus SIP
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Year-wise Comparison
| Year | SIP contributed (₹) | SIP value (₹) | Lumpsum invested (₹) | Lumpsum value (₹) | Lumpsum − SIP (₹) |
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Assumptions & method
- Equal contributions: lumpsum = monthly SIP × number of months, so both strategies commit the same total.
- Timing: the lumpsum is invested at the start of year 1 (month 0). Each SIP instalment is invested at the end of its month.
- Return: the annual return is an effective annual rate held constant. The monthly rate is (1 + annual)^(1/12) − 1, so a lumpsum compounds to exactly (1 + annual)^years.
- SIP value: the sum of each instalment grown to the end of the period. With a monthly rate i and n months this equals SIP × ((1 + i)^n − 1) ÷ i; at 0% it is simply SIP × n.
- The model has no volatility, so it cannot show how a SIP can benefit from falling prices. It isolates the effect of timing only.
- Fees, taxes and inflation are not modelled. Results are estimates, not predictions.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
SIP or lumpsum: what really differs?
A SIP invests a fixed sum on a schedule, and a lumpsum invests everything at once. If you commit the same total to both, the lumpsum has more of its money working for longer. At a constant positive return that gives it a mathematical edge, and this tool shows how large that edge is. In practice the choice depends on cash flow and risk. Most people receive income monthly, so a SIP is the only way to invest. If you do hold a large sum, a SIP or staged entry can reduce regret if prices fall right after you invest, a risk a constant-return model cannot capture. Use the comparison to understand the cost or benefit of timing, not to forecast which will win.