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SIP vs Lumpsum

Compare Systematic Investment Plan with one-time investment.

Last reviewed:
For FY 2026-27 · India

The SIP amount; the lumpsum equals SIP × months, invested on day one.

Your own assumption, not a promised or guaranteed return.

Investment period.

Quick examples

Difference (lumpsum − SIP)₹16,37,074

₹10,000/month SIP vs ₹12,00,000 lumpsum for 10 years at an assumed 12%.

Y1Y5Y10
SIP valueLumpsum value
What you are seeing: Both use ₹12,00,000 in total. The lumpsum line stays above the SIP bars because the whole amount compounds from day one.
Total money (both)₹12,00,000
SIP value₹23,23,391
Lumpsum value₹39,60,464
Difference₹16,37,074

What each result means

Total money (both)

What it is: SIP × months; the lumpsum is the same amount.

Your value: ₹12,00,000

Same money, different timing.

SIP value

What it is: Future value of the monthly SIP.

Your value: ₹23,23,391

Money goes in gradually.

Lumpsum value

What it is: Same total invested at the start.

Your value: ₹39,60,464

All money invested for the full period.

Difference

What it is: Lumpsum value minus SIP value.

Your value: ₹16,37,074

Under a constant return, earlier money grows longer.

Year-by-year breakdown

SIP vs Lumpsum Calculator year-by-year schedule
YearInvested so far via SIP (₹)SIP value (₹)Lumpsum value (₹)Difference (₹)
1₹1,20,000₹1,28,093₹13,52,190₹12,24,097
2₹2,40,000₹2,72,432₹15,23,682₹12,51,250
3₹3,60,000₹4,35,076₹17,16,923₹12,81,846

How to read this: both columns assume the same constant return. Real markets are not constant, which is why SIPs are used to spread timing risk.

Showing the first 3 of 10 years. Want charts, formulas and the full schedule? Get the detailed PDF.

What this calculator does

This calculator compares investing a fixed monthly SIP with investing the same total as one lumpsum on day one, at the same assumed return.

What your result means

With a constant return, the lumpsum always ends higher because all the money compounds for longer. Real returns vary month to month, so this comparison shows arithmetic, not which is better for you.

Formula

1. SIP value

FV_SIP = P × [((1 + i)ⁿ − 1) ÷ i] × (1 + i)

Symbols

P
Monthly SIP
i
Monthly return
n
Months

2. Lumpsum value

FV_L = (P × n) × (1 + i)ⁿ

Symbols

P × n
Same total money invested at the start

Why this formula works

Uses the same monthly rate so both are compared on equal terms.

Working for your numbers

  1. i = 12 ÷ 1200 = 0.010000; n = 120
  2. FV_SIP = ₹10,000 × 232.3391 = ₹23,23,391
  3. FV_L = ₹12,00,000 × 3.3004 = ₹39,60,464

Frequently asked questions

Why does lumpsum win here?

A constant return rewards money invested earlier. In real markets a lumpsum made just before a fall can do worse; a SIP spreads the timing.

Is the return on this page guaranteed?

No. Every rate here is your own assumption. Market-linked results go up and down; this page shows what the numbers give under your assumptions, not a promise.

When should I talk to a professional instead?

Before a real decision, especially a large or long-term one, speak to a SEBI-registered investment adviser or a qualified professional. This page is educational only.

Symbols and assumptions

P
Monthly SIP (₹)
i
Monthly return
n
Months
  • Same constant return for both, compounded monthly.
  • Does not account for taxes, fees, expense ratios or exit loads.

Sources and review

Reviewed 2026-09-29 · Next review 2027-09-29

Not investment advice. VIA Capital is not a SEBI-registered investment adviser and this calculator does not recommend any fund, product or investment strategy. Market-linked investments are subject to market risk; assumed returns are not indicative of future results.
Important limitation. This is an educational estimate based solely on the values and formula shown. It is not financial, tax or investment advice. Actual returns will differ from any assumed rate. Verify with a qualified financial professional before making any investment decision.
RetirementGoal PlannerCrorepatiMutual Fund ReturnsXIRRReal Return

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How it works

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

The formula

FV(SIP) vs FV(Lumpsum)
SIP
Monthly Investment
Lumpsum
Total Capital invested at once

Worked example

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

Pro tips

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

Common mistakes

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

Go deeper

Related lessons

Mutual Funds Explained

Concepts to explore

Rupee Cost Averaging

Related guides

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.

Read guide

Institutional grade calculations are illustrative and for educational wealth architecture. Results do not constitute investment advice.