SIP vs Lumpsum Calculator
Compare monthly SIP investing with a one-time lumpsum investment using the same expected return and duration.
Tax year 2026 - Updated June 2026
Comparison inputs
Lumpsum is ahead
₹14,03,627
Difference after 10 years at an assumed 12% annual return.
SIP future value
₹23,23,391
Invested ₹12,00,000
Lumpsum future value
₹37,27,018
Invested ₹12,00,000
SIP returns
₹11,23,391
Lumpsum returns
₹25,27,018
SIP real value
₹12,97,369
Lumpsum real value
₹20,81,147
SIP vs lumpsum growth chart
Year-by-year estimate of SIP corpus versus lumpsum corpus.
SIP corpusLumpsum corpusFinal: ₹23,23,391
Year-by-year comparison
Shows how invested amount and projected corpus change each year.
| Year | SIP invested | SIP corpus | Lumpsum invested | Lumpsum corpus | Difference |
|---|---|---|---|---|---|
| Year 1 | ₹1,20,000 | ₹1,28,093 | ₹12,00,000 | ₹13,44,000 | -₹12,15,907 |
| Year 2 | ₹2,40,000 | ₹2,72,432 | ₹12,00,000 | ₹15,05,280 | -₹12,32,848 |
| Year 3 | ₹3,60,000 | ₹4,35,076 | ₹12,00,000 | ₹16,85,914 | -₹12,50,837 |
| Year 4 | ₹4,80,000 | ₹6,18,348 | ₹12,00,000 | ₹18,88,223 | -₹12,69,875 |
| Year 5 | ₹6,00,000 | ₹8,24,864 | ₹12,00,000 | ₹21,14,810 | -₹12,89,946 |
| Year 6 | ₹7,20,000 | ₹10,57,570 | ₹12,00,000 | ₹23,68,587 | -₹13,11,017 |
| Year 7 | ₹8,40,000 | ₹13,19,790 | ₹12,00,000 | ₹26,52,818 | -₹13,33,028 |
| Year 8 | ₹9,60,000 | ₹16,15,266 | ₹12,00,000 | ₹29,71,156 | -₹13,55,890 |
| Year 9 | ₹10,80,000 | ₹19,48,215 | ₹12,00,000 | ₹33,27,695 | -₹13,79,479 |
| Year 10 | ₹12,00,000 | ₹23,23,391 | ₹12,00,000 | ₹37,27,018 | -₹14,03,627 |
Formula used
- SIP monthly rate = expected annual return / 12 / 100.
- SIP future value = P x [((1 + r)^n - 1) / r] x (1 + r), where P is monthly SIP, r is monthly rate, and n is total months.
- Lumpsum future value = one-time investment x (1 + annual return) ^ duration years.
- Estimated returns = future value - invested amount.
- Difference = SIP future value - lumpsum future value.
- Inflation-adjusted value = future value / (1 + expected inflation) ^ duration years.
- Taxes, exit loads, brokerage, expense ratios, STP timing, and market volatility are not included.
Quick answers
SIP vs Lumpsum Calculator FAQs
Is SIP better than lumpsum?
SIP spreads investment over time, while lumpsum invests all money upfront. The better choice depends on cash availability, risk comfort, and market timing.
When can lumpsum show higher value?
Lumpsum can show higher estimated value when money is invested earlier and markets grow over the full duration.
Does SIP reduce market timing risk?
SIP spreads purchases across months, which can reduce the pressure of investing everything on one date.
Does this comparison include taxes?
No. It does not include taxes, exit load, expense ratio, STP timing, or market volatility.
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Assumptions
- SIP contributions are treated as monthly investments made at the beginning of each month.
- Lumpsum investment is treated as invested at the start of the duration.
- Expected return and inflation are fixed for the full period.
- Inflation-adjusted values show approximate purchasing power in today's money.
- Taxes, exit loads, brokerage, expense ratios, STP timing, and volatility are not included.
Disclaimer
The information and calculations provided on this website are for general informational and educational purposes only. Results are estimates based on publicly available tax rules and assumptions and may not reflect your actual tax liability or take-home pay. This content does not constitute tax, legal, accounting, or financial advice. Tax laws and regulations change frequently and vary based on individual circumstances. Consult a qualified tax professional, accountant, or financial advisor before making any financial decisions.
This website is not affiliated with the IRS, HMRC, Income Tax Department of India, or any government agency.