Insights Page/Mutual Funds

SIP vs Lumpsum: How It Works, Formula and a Worked Example

Compare Systematic Investment Plan with one-time investment. Here is the formula, a worked example, the mistakes to avoid, and a free calculator with a downloadable PDF report.

Abhishek sharma
Editorial Lead
Updated September 17, 2026
4 Min Read

There is a moment in every financial decision where you stop reading and start calculating. Compare Systematic Investment Plan with one-time investment. This guide is written for that moment. Plain language, one worked example, and a calculator you can open in the next line if you would rather skip straight to your own figures.

Cover image slot — add a screenshot or illustration from Admin → Blog when it is ready.

Prefer to start with your own figures? Use the SIP vs Lumpsum now, or continue for the formula and a worked example.

The logic, in plain language

Compare the final value of investing a fixed amount every month versus a single one-time investment of the same total capital.

The formula behind it:

FV(SIP) vs FV(Lumpsum)
Symbol What it means
SIP Monthly Investment
Lumpsum Total Capital invested at once

Nothing is rounded away quietly and nothing is assumed on your behalf. If a figure appears in the result, it came from something you entered.

Putting real figures through it

Comparing ₹10k monthly for 10 years vs ₹12L one-time for 10 years.

Change any one input and watch the result move — that sensitivity is the real lesson. It is far more useful than memorising a single outcome, because your own rate, tenure or contribution will never match the example exactly.

Using the SIP vs Lumpsum, step by step

  1. Open the SIP vs Lumpsum.
  2. Enter your figures. Use the ones on your statement, sanction letter or scheme document rather than a remembered number.
  3. Read the result card — the headline figure plus the breakdown that produced it.
  4. Adjust one input at a time to see what genuinely moves the outcome.
  5. Tap Download PDF to keep a copy of the calculation, with your inputs and assumptions printed on it.

The PDF takes a few seconds to build because it is a properly typeset report, not a screenshot. You will see a progress message while it is being prepared, and the download starts on its own.

Things worth knowing before you decide

  • SIP is generally safer due to rupee-cost averaging.
  • Lumpsum can be better in long bull markets if capital is available.

Where people usually slip up

  • Assuming one is always better than the other without considering risk.

If you want to go a level deeper afterwards, read up on rupee cost averaging. Both come up the moment you start comparing options seriously.

Interactive calculator

Try the SIP vs Lumpsum

Enter your own figures below. The same calculator and PDF report remain available on the focused calculator page.

%
Yrs

Strategy Comparison

SIP Growth

99,91,47,919

Lumpsum Growth

2,31,51,10,342

Calculated for 20Y at 12% with total capital ₹24,00,00,000

Final SIP Value

₹99,91,47,919

Total Capital

₹24,00,00,000

Lumpsum Total

₹2,31,51,10,342

Portfolio Mix

Invested
Returns

Growth Curve

Visual graph available for compounding tools

You invest ₹10,00,000 every month for 20 years. At an estimated 12% annual return, your total investment is ₹24,00,00,000 and the estimated total value is approximately ₹99,91,47,919. Around ₹2,31,51,10,342 represents estimated growth.

Next Architectural Steps

Open the full calculator

What else you will find on VIA Capital

The calculator is one corner of a much bigger free toolkit. While you are here:

New tools and sections go live regularly, and each one gets written up here the same way.

Questions people ask us

Is the SIP vs Lumpsum free to use? Yes. Every calculator on VIA Capital is free, works without a login, and nothing you type is stored on our servers.

How accurate is it? The arithmetic is exact — it is the formula shown above, nothing hidden. Accuracy of the answer depends on your inputs. Rates, tenures and charges change, so use the figures from your own statement or sanction letter rather than a number you remember.

Can I save or share the result? You can download a formatted PDF report of your calculation and share it with your family, your CA or your bank. The download link sits right under the result.

Does it work on a phone? It does. The sip vs lumpsum is built mobile-first, which is how most people in India actually search for "comparison".

Is this investment advice? No. VIA Capital is an education platform. We show you the maths and the assumptions; the decision, and the responsibility for it, stays with you. For anything personalised, speak to a SEBI-registered professional.

The short version

Compare Systematic Investment Plan with one-time investment. The formula is public, the assumptions are printed on the page, and the calculation is yours to keep as a PDF.

👉 Run your own numbers in the SIP vs Lumpsum

VIA Capital publishes financial education only. Nothing here is investment advice or a personalised recommendation, and no calculator output should be treated as a promise of returns.

Educational content only. Educational content only. Not investment advice or a personalised recommendation.

Written by

Abhishek sharma

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