SIP vs Lumpsum Calculator

Given the same total amount and time period, would investing it all at once or spreading it monthly through a SIP leave you with more at the end? This calculator projects both under the same assumed constant annual return, so you can compare the pure math side by side.

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Lumpsum maturity value
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SIP maturity value
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Difference

How to Use This Tool

  1. Enter the total amount you have to invest.
  2. Enter the investment period in years.
  3. Enter an expected annual return — the same rate is applied to both scenarios for a fair comparison.
  4. Compare the two estimated maturity values.

Formula

Lumpsum: M = P × (1 + r)^t SIP: M = A × [((1 + i)^n − 1) / i] × (1 + i) Where P is the lumpsum amount, A is the equivalent monthly SIP amount (P divided across all months), r is the annual rate, i is the monthly rate, t is years, and n is total months.

Why Use ToolVigo's SIP vs Lumpsum Calculator

  • Projects both scenarios from the same total amount, period and assumed return, for a direct comparison.
  • Shows the exact difference in rupees (or your currency) between the two approaches.
  • Explains the key real-world factor the comparison leaves out: market timing.

Limitations

Assumes one constant annual return for the entire period for both scenarios, which real markets never actually deliver — this tool compares the pure math of the two approaches, not a market forecast.

Privacy & Security

This tool runs entirely in your browser. Nothing you enter is uploaded to ToolVigo's servers or stored anywhere.

This calculator provides an estimate for informational purposes only and is not financial advice. Actual returns, interest rates and scheme rules can change and may differ from this estimate. Confirm current rates and rules with the official scheme provider or a licensed financial advisor before making decisions.

Frequently Asked Questions

Does lumpsum always win in this calculator?

Under a constant assumed annual return, lumpsum mathematically comes out ahead, because the full amount starts compounding immediately rather than growing into the market gradually. This is a feature of the constant-return assumption, not necessarily a real-world guarantee.

So why do people choose SIP over lumpsum?

SIP's main real-world advantage is averaging your purchase price across market ups and downs (rupee-cost averaging), which this calculator's constant-return model can't capture — markets don't move in a straight line, and a lumpsum invested right before a downturn can underperform a SIP in practice, even though a constant-return model always favors lumpsum.

Which should I actually choose?

This is a personal decision based on your risk tolerance, whether you have the lump sum available now, and market conditions — this tool is for understanding the math, not a recommendation.

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