When it comes to investing, one of the most common debates is SIP (Systematic Investment Plan) vs Lumpsum Investment. While SIP allows you to invest a fixed amount regularly, lumpsum means investing the entire amount at once.
Both strategies have their own benefits and risks. Lumpsum works best in a rising market as it allows compounding on the full amount from the beginning. SIP, on the other hand, is ideal for volatile or uncertain markets as it averages out the cost of investment and reduces timing risk.
Our SIP vs Lumpsum Calculator helps you compare both options side by side. You can enter your investment amount, expected returns, and time horizon to see which strategy works better for your goals.
Why Compare SIP vs Lumpsum?
Investors often wonder: “Should I invest all my savings now or spread it across months?” The answer depends on market conditions, risk appetite, and financial goals.
- Lumpsum Investment is powerful in a bull market, where money compounds longer.
- SIP is better during volatile markets, where timing the market is difficult.
How Does the Calculator Work?
Enter your investment amount (₹).
Select time horizon (years).
Enter expected return rate (%).
Choose SIP or Lumpsum.
Compare results in a graph and table.
The calculator uses compound interest formulas for SIP and lumpsum to show the future value of investments.
When Should You Use SIP?
- If you don’t have a large sum to invest.
- If the market is volatile or uncertain.
- If you want disciplined, automated investing.
When Should You Use Lumpsum?
- If you have a bonus, inheritance, or large savings.
- If markets are expected to trend upward.
- If you want to maximize compounding from day one.
Example
If you invest ₹12L lumpsum for 20 years at 12% CAGR, your corpus could be ₹1.15 Cr.
If you invest the same amount via SIP (₹50k/month), you may end up with ₹98L.
👉 But in a market crash, SIP may beat lumpsum due to rupee-cost averaging.