SIP vs Lump Sum Comparison
See side-by-side which comes out ahead for your numbers: investing monthly via SIP, or investing everything as a lump sum today.
Lump Sum: Better if markets are at a low; higher risk but higher upside potential
Disclaimer. This calculator is provided for educational and informational purposes only. Results are estimations and do not constitute professional financial, investment, tax, or legal advice. Consult a qualified advisor before making financial decisions. Read full disclaimer →
About SIP vs Lump Sum Comparison
This calculator compares the wealth accumulated from a Systematic Investment Plan (SIP) versus investing the equivalent total amount as a lump sum. Lump sum formula: FV = PV x (1 + r)^n. SIP formula: FV = P x ((1+r)^n - 1) / r. The comparison depends critically on market conditions at the time of investment and the assumed return rate.
SIP advantages: rupee cost averaging (buying more units when markets fall, fewer when they rise, lowering average cost per unit over time); removes timing risk; instils financial discipline; accessible for salaried investors without large corpus. Lump sum advantages: full corpus invested from day one means more compounding time; outperforms SIP in consistently rising markets (bull runs). Research shows that in most real-world scenarios over 10+ year horizons, returns are similar. For large amounts received at once (bonus, inheritance), consider deploying via Systematic Transfer Plan (STP) from a liquid fund into equity over 3-6 months to reduce timing risk while maintaining market exposure.