SIP vs Lumpsum calculator
Should I invest as a lumpsum or spread it as a SIP?
This compares investing a sum today, in one shot, against spreading the same total across monthly instalments over the same period — at the same assumed return. It shows which route ends with more, and by how much.
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Assumes a constant return — real markets move up and down, which is exactly what SIPs are meant to smooth out.
Lumpsum vs SIP growth
Frequently asked questions
What's the difference between a SIP and a lumpsum investment?
A lumpsum is investing your full amount on day one; a SIP spreads the same total across equal monthly instalments over a period. Both can go into the same fund — the difference is only in how the money enters the market.
Does a lumpsum always beat a SIP?
At a constant assumed return, yes — money invested earlier compounds for longer, so a lumpsum on day one always ends ahead of the same total spread across a SIP. Real markets don't move at a constant rate though, which is exactly what changes this comparison in practice.
So why would anyone choose a SIP over a lumpsum?
Because real returns aren't constant — a lumpsum invested right before a downturn can underperform a SIP that averaged its purchase price through the dip. SIPs trade a small compounding disadvantage for protection against bad timing, which matters more the less certain you are about market timing.
I have a windfall right now — should I lumpsum it or drip it in as a SIP?
It depends on your conviction and the amount relative to your portfolio. Many investors split the difference: lumpsum a portion immediately and stagger the rest as a SIP over 6–12 months to average the entry price on the balance.
Does rupee cost averaging actually improve returns?
It reduces the impact of bad timing, not necessarily total returns — averaging your purchase price smooths out volatility rather than boosting the underlying return. Its real benefit is behavioural: it removes the pressure of picking a single entry point.
Can I compare a lumpsum against a step-up SIP instead of a flat one?
This calculator compares a lumpsum against a flat monthly SIP of the same total outlay. Check the step-up SIP calculator separately if you want to see how a rising instalment builds up on its own.