Enter the amount you have, how long to stay invested and how many months you would spread a SIP over. This SIP vs lumpsum calculator compares both ways and tests what happens if the market falls.
SIP vs Lumpsum Calculator
Invest everything today, or spread the same money over a SIP period.
What if the market behaves differently during the SIP period?
| Return during SIP period | Lump sum (₹) | SIP (₹) | Better |
|---|
Illustrative estimates only. Real market returns are never steady, and neither option is guaranteed.
You have ₹6 lakh to invest. Put it all in today, or spread it over 12 months through a SIP? A SIP vs lumpsum calculator answers with numbers: in a steadily rising market the lump sum ends ahead, but in a falling one the SIP can win.
How do you use this SIP vs lumpsum calculator?
- Enter the total amount you have ready to invest.
- Set how many years you will stay invested.
- Choose how many months you would spread the SIP over, such as 6, 12 or 24.
- Enter the return you expect during the SIP period and after it. Use a negative number to test a falling market.
- Enter what your cash earns while it waits, for example in a savings account.
- Press Calculate, read the verdict and the scenario table, then use Copy result to save a summary.
Stock Charcha built this SIP vs lumpsum calculator around the same total amount for both options, because comparing a ₹6 lakh lump sum with a ₹10,000 SIP is not a fair test.
How does the SIP vs lumpsum calculator compare the two options?
The lump sum invests the full amount on day one. The SIP splits the same amount into equal monthly instalments over your chosen period, and the money not yet invested waits in cash.
Monthly SIP = Total amount ÷ SIP months
When the SIP period ends, both options stay invested until the tenure is over. The option with the larger corpus at that date is the winner under your assumptions.
What does a worked example look like?
Take ₹6,00,000 for 10 years, a 12-month SIP, an illustrative 12% return throughout and 4% on waiting cash.
| At the end of 10 years | Lump sum | 12-month SIP |
|---|---|---|
| Invested on day one | ₹6,00,000 | ₹50,000 |
| Estimated corpus | ₹19,80,232 | ₹19,08,931 |
| Estimated gain | ₹13,80,232 | ₹13,08,931 |
The lump sum ends about ₹0.71 lakh ahead because all of its money worked for the full 10 years. These figures are illustrative, not a promise.
What happens if the market falls while your SIP runs?
This is where the SIP earns its place. Here is the same example with different returns during the 12-month SIP period, and 12% afterwards.
| Return during SIP period | Lump sum | SIP | Better |
|---|---|---|---|
| −10% | ₹15,89,455 | ₹16,98,066 | SIP |
| 0% | ₹17,57,355 | ₹17,90,408 | SIP |
| 12% | ₹19,80,232 | ₹19,08,931 | Lump sum |
| 20% | ₹21,42,904 | ₹19,92,922 | Lump sum |
Stock Charcha suggests reading the market-falls row first, because that is the risk a SIP is meant to soften. If the market falls 10% a year while you invest, the SIP wins by about ₹1.09 lakh. In this model the break-even is the return on your waiting cash, here 4%. Below it the SIP wins, and above it the lump sum wins.
Why does a lump sum usually win on paper?
A lump sum gets every rupee invested from day one, so more money works for more months. If you assume markets rise at a steady pace, that head start always pays.
The real value of a SIP is smoother entry and less regret, and a steady-return model cannot fully show that. Real markets swing, which is why the scenario table matters more than the headline number.
Does spreading over more months change the answer?
Yes, because the longer you wait to invest, the more of the market’s growth you give up in a rising market. Here is the base example with different SIP periods.
| SIP period | SIP corpus | Gap to lump sum |
|---|---|---|
| 6 months | ₹19,47,595 | ₹32,637 |
| 12 months | ₹19,08,931 | ₹71,302 |
| 24 months | ₹18,33,306 | ₹1,46,926 |
The gap widens as the SIP period stretches. Many people pick a short spread, such as six months, so they get the comfort of staged entry without giving up too much.
What does this SIP vs lumpsum calculator leave out?
It does not deduct the fund’s expense ratio, so enter net returns. It also ignores capital gains tax and exit loads, and real returns do not arrive in a straight line. Check current tax rules on the Income Tax Department website as of today.
It is also built for money you already hold. If you earn monthly, a salary-funded SIP is the practical route anyway. For fund data, use AMFI. Mutual fund investments are subject to market risks. Read all scheme related documents carefully before investing. At Stock Charcha we would rather show a cautious number than a flattering one.
Where should you go after using the SIP vs lumpsum calculator?
For the full argument, read our guide on SIP vs lump sum. New to SIPs? Start with what is SIP in mutual funds, then see the power of SIP in Indian equities.
If waiting is on your mind, try our SIP delay calculator. Then rerun the SIP vs lumpsum calculator with a falling-market return and see whether your choice still holds.
Founder of Stock Charcha. Stock market enthusiast, actively investing since November 2022. About the author
Educational content only. This page is not personalised financial advice. Please do your own research or speak to a SEBI-registered adviser before investing, and read our disclaimer.
Frequently asked questions
Is SIP or lump sum better for beginners?
Neither is better for everyone. A SIP suits people who invest from monthly income or want to ease in, while a lump sum suits money you already hold and a long horizon. Pick the one you will stay with through a fall.
Should I invest a lump sum when the market is high?
Nobody can time the market reliably. A staged entry over a few months, through a SIP or an STP, can reduce regret if prices fall, but it costs some growth if prices rise. The scenario table shows both sides.
Can I use the SIP vs lumpsum calculator for my monthly salary?
It is built for money you already have. If you only earn monthly, a SIP is your practical option, and our SIP calculator will project that. Use this tool for a bonus, a maturity amount or savings.
What is the return on waiting cash?
It is what the money earns while it waits to be invested, for example in a savings account or liquid fund. Enter your own figure. A higher number makes the SIP look better because the waiting money is not idle.
Is the SIP vs lumpsum calculator result guaranteed?
No. Market returns vary, and the calculator uses fixed rates for each period. Treat the result as a planning estimate, and compare the market-falls and market-rises rows before you decide.