ToolerWork Calculators
sip vs lumpsum calculator
This tool calculates the SIP side. The lumpsum figure on this page comes from the formula shown below, using the same monthly compounding, so the comparison is like for like.
No signup - Instant results - Runs in your browser - Estimates, not guarantees
| Year | Invested | Value | Gains |
|---|---|---|---|
| 1 | ₹60,000 | ₹64,047 | ₹4,047 |
| 2 | ₹1,20,000 | ₹1,36,216 | ₹16,216 |
| 3 | ₹1,80,000 | ₹2,17,538 | ₹37,538 |
| 4 | ₹2,40,000 | ₹3,09,174 | ₹69,174 |
| 5 | ₹3,00,000 | ₹4,12,432 | ₹1,12,432 |
| 6 | ₹3,60,000 | ₹5,28,785 | ₹1,68,785 |
| 7 | ₹4,20,000 | ₹6,59,895 | ₹2,39,895 |
| 8 | ₹4,80,000 | ₹8,07,633 | ₹3,27,633 |
| 9 | ₹5,40,000 | ₹9,74,108 | ₹4,34,108 |
| 10 | ₹6,00,000 | ₹11,61,695 | ₹5,61,695 |
How to use
- Enter SIP details
Add the monthly investment amount, expected annual return, and duration in years.
- Read the results
Maturity value, total invested, and total gains update instantly.
- Check the year-wise growth
Scroll the table to see how your invested amount vs. value grows each year.
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Results compute instantly as you type.
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Set up a fair test: the same total rupees and the same assumed return. A SIP of ₹5,000 a month for 10 years puts in ₹6,00,000 in total. The lumpsum equivalent is ₹6,00,000 invested on day one. Both are grown at an assumed 12% a year with the same monthly compounding this calculator uses (1% a month), so neither side gets a different convention.
On those assumptions the SIP reaches ₹11,61,695 and the lumpsum reaches ₹19,80,232 — about 1.7x as much. The reason is simple arithmetic: every rupee of the lumpsum is invested for the full 10 years, whereas SIP money arrives gradually, so the average installment is invested for only about half that time. Under any constant positive return, money invested earlier ends higher. That is not a verdict on which approach is better for you.
People still choose SIP because the comparison above assumes you have the whole amount on day one, and most people do not — a SIP matches how income actually arrives, and it builds a habit. Supporters also point to rupee-cost averaging: buying more units when prices are low and fewer when high. A fixed-return calculator cannot show that, because it assumes the same return every single month. Real markets rise and fall, so the real-world comparison is genuinely uncertain in a way a constant rate hides.
To run your own numbers, enter the SIP in the calculator above. For a lumpsum, multiply the amount by (1 + annual rate / 12 / 100) raised to the number of months. This is an educational comparison, not financial advice, and returns are never guaranteed; consider your own situation, or a qualified financial advisor, before deciding how to invest.
Same total invested (₹6,00,000), same 12% assumption, 10 years
Monthly compounding for both. Constant-return estimates only, not guaranteed returns.
| Approach | How the money goes in | Estimated value |
|---|---|---|
| SIP | ₹5,000 at the start of each month, 120 times | ₹11,61,695 |
| Lumpsum | ₹6,00,000 on day one | ₹19,80,232 |
Top benefits
- A like-for-like comparison that uses one compounding convention on both sides.
- Understand why lumpsum wins on paper and why SIP is still widely used.
- A clear statement of what a constant-return calculator cannot show.
How to apply this workflow
- Enter your monthly SIP amount, rate and duration in the calculator above.
- Multiply your total invested by (1 + annual rate / 12 / 100) to the power of the months for the lumpsum side.
- Compare the two, remembering both assume a constant return.
- Weigh cash flow and habit as well as the arithmetic.
Best use cases
- Understanding the arithmetic behind the SIP versus lumpsum debate.
- Sanity-checking a claim that one approach always beats the other.
- Explaining to a friend why SIP is about cash flow, not a return boost.
Continue with the calculators
Use the main SIP Calculator for the real numbers, then move on to a related calculator or open the full calculators hub.
FAQ
Does this tool calculate lumpsum returns?
No, it calculates SIP only. The lumpsum figure on this page comes from the formula shown, using the same monthly compounding as the SIP calculator.
Why does the lumpsum end higher here?
Because all of it is invested for the whole period, while SIP installments arrive gradually and on average are invested for only about half the time. Under a constant positive return, earlier money ends higher.
Does that mean lumpsum is better than SIP?
Not necessarily. It only shows the arithmetic under a constant return. SIP fits monthly income and builds a habit, and real markets are not constant.
What is rupee-cost averaging, and does this calculator show it?
It means buying more units when prices are low and fewer when they are high. A constant-return calculator cannot show it because it assumes the same return every month.
Is this financial advice?
No. It is an educational comparison based on assumed returns, which are never guaranteed.
About this tool
SIP Vs Lumpsum Calculator
Estimate what a fixed monthly mutual fund SIP could grow to, with total invested, total gains, and a year-by-year table. This page focuses on the SIP Vs Lumpsum Calculator variant.
A SIP puts a fixed amount into a fund every month, so the final value depends on three things you choose: how much you invest, the return you assume, and how long you stay invested. This calculator compounds monthly at one-twelfth of the annual rate and treats each installment as invested at the start of its month, then shows the estimated maturity value, the total you put in, the growth on top of it, and a year-by-year table so you can watch compounding build over time. The return is a number you supply, not a forecast, and the estimate does not deduct fund expense ratio, exit load, tax, or inflation. The monthly amount stays fixed for the whole duration, so there is no step-up or lumpsum mode. Treat the result as a planning estimate, not a promise of returns.
How to use this tool
- Enter your monthly SIP amount.
- Enter the annual return you want to assume and the duration in years.
- Read the estimated maturity value, total invested, and total gains.
- Try a cautious and an optimistic return to see the range, and scan the year-wise table.
Why users choose this tool
- Maturity value, total invested, and total gain in one view, updating as you type.
- A year-by-year table that shows how compounding builds over the full duration.
- Runs in your browser, so nothing you enter is uploaded.
Common use cases
- Estimate what a monthly SIP could grow to before you start or increase it.
- Compare how different monthly amounts, durations, or assumed returns change the outcome.
- Check a maturity figure someone quoted you against a transparent month-by-month formula.
When to choose this tool
Choose the SIP Calculator when you are investing a fixed amount every month and want to estimate what it could grow to. Choose the EMI Calculator when you are repaying a loan and want the monthly payment and total interest — SIP is about growth of money you invest, EMI is about the cost of money you borrow. This tool models a fixed monthly SIP only: it has no lumpsum or step-up mode, and it does not deduct fund costs, tax, or inflation, so use its result as an estimate rather than a forecast.
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