Lumpsum vs SIP
Compare investing at once with spreading it out, on real history.
Your inputs
What the waiting money earns, for example in a liquid fund.
Advanced settings
How the yearly return is applied
Most apps divide the yearly return by 12, which shows about 3.5% more over 10 years. We use the effective rate by default, so 12% means 12% a year.
Payment timing
Results
Generated on 11 Oct 2026
Your inputs
| Total amount to invest | ₹5,00,000 |
|---|---|
| Spread the SIP over | 12 mo |
| Expected return (per year) | 12% |
| Return on money waiting to be invested | 6.5% |
| Time period | 10 years |
| How the yearly return is applied | Effective (12% = 12% a year) |
| Payment timing | Start of month |
Lumpsum leaves you more by
₹63,350
- Lumpsum value
- ₹15,52,924
- SIP value
- ₹14,89,574
- Monthly instalment
- ₹41,667
- Interest on waiting money
- ₹14,470
See how a different amount, return or period changes the result, side by side.
Year-by-year breakdown
| Year | Lumpsum | SIP / STP |
|---|---|---|
| 1 | ₹5,60,000 | ₹5,31,937 |
| 2 | ₹6,27,200 | ₹5,95,770 |
| 3 | ₹7,02,464 | ₹6,67,262 |
| 4 | ₹7,86,760 | ₹7,47,334 |
| 5 | ₹8,81,171 | ₹8,37,014 |
| 6 | ₹9,86,911 | ₹9,37,455 |
| 7 | ₹11,05,341 | ₹10,49,950 |
| 8 | ₹12,37,982 | ₹11,75,944 |
| 9 | ₹13,86,539 | ₹13,17,057 |
| 10 | ₹15,52,924 | ₹14,75,104 |
Assumptions and method
Formula
- Lumpsum: FV = A · (1 + i)^n
- SIP: A / k invested each month for k months, FV = Σ (A/k) · (1 + i)^(n − j)
- Parked cash earns the parking rate until invested; interest added at the end
Conventions used
- Monthly rate: i = (1 + r)^(1/12) − 1 (Effective (12% = 12% a year))
- Money moves at the start of each month, so an instalment earns that month's return.
Modelling notes
- A constant return favours the lumpsum. Spreading the investment helps only when markets fall during the spread; see our research tools for real NAV history.
Not included
- Market ups and downs: the same return is assumed every month.
- Expense ratio, exit load and stamp duty, unless your expected return already allows for them.
- Income tax on gains (turn on the post-tax option to estimate it).
This is an illustration based on the return you entered. Actual returns vary and may be lower or negative.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
How it works
Have a sum to invest? You can invest it all at once (lumpsum) or spread it over several months (SIP / STP). This calculator compares both at the same expected return, with the waiting money earning a parking rate (for example in a liquid fund).
At a constant positive return, the lumpsum always ends higher because the money is invested longer. In real markets, spreading the investment reduces the risk of entering just before a fall. Our research tools show how this played out on real NAV history.
Frequently asked questions
Why does the lumpsum always win here?
With a constant return and no volatility, money invested earlier simply compounds for longer. The comparison shows the cost of waiting; the benefit of spreading out comes from market ups and downs, which a constant-return projection cannot show.
What is the parking rate?
The return earned by money waiting to be invested, for example in a liquid or overnight fund (about 6–7% a year). It narrows the gap between the two options.
What return should I assume?
Use a figure you would be comfortable with if markets disappoint. For diversified equity funds over 10+ years, 10–12% a year is a common planning assumption; debt funds 6–7%. Returns are not fixed, can be negative over short periods, and past performance may or may not be sustained in future.