SIP vs lumpsum · same money, different timing
SIP vs Lumpsum Calculator: Which Is Better for You in 2026?
By Pratik Bajoria, Chartered Accountant & NISM-certified Research Analyst · Last reviewed 7 Oct 2026 by Pratik Bajoria, CA · real-data table uses AMFI NAVs to 30 Sep 2026
Say you get a ₹12 lakh bonus. Invest it all today, or spread it out? The honest answer is that maths and nerves give different answers. Money invested earlier has longer to compound. But markets don't rise in a straight line, and a lumpsum the week before a fall is hard to live with.
This calculator compares both at the same assumed return. Below it you'll find the formula view and real 5-, 10- and 13-year outcomes from AMFI NAV data, so you can see how timing actually played out.
Higher estimated maturity value
₹46.5 L
Formulas
SIP FV = P × [((1 + i)^n − 1) / i] × (1 + i) · Lumpsum FV = L × (1 + r)^t
P = monthly SIP, i = monthly rate (r/12), n = months; L = lumpsum, r = annual return, t = years.
Same total, constant return: lumpsum vs ₹10,000 SIP
| Horizon | Total invested | Return | SIP value | Lumpsum value (all on day 1) |
|---|---|---|---|---|
| 5 years | ₹6,00,000 | 8% | ₹7.40 lakh | ₹8.82 lakh |
| 5 years | ₹6,00,000 | 10% | ₹7.81 lakh | ₹9.66 lakh |
| 5 years | ₹6,00,000 | 12% | ₹8.25 lakh | ₹10.57 lakh |
| 10 years | ₹12,00,000 | 8% | ₹18.42 lakh | ₹25.91 lakh |
| 10 years | ₹12,00,000 | 10% | ₹20.66 lakh | ₹31.12 lakh |
| 10 years | ₹12,00,000 | 12% | ₹23.23 lakh | ₹37.27 lakh |
| 15 years | ₹18,00,000 | 8% | ₹34.83 lakh | ₹57.10 lakh |
| 15 years | ₹18,00,000 | 10% | ₹41.79 lakh | ₹75.19 lakh |
| 15 years | ₹18,00,000 | 12% | ₹50.46 lakh | ₹98.52 lakh |
Illustration at constant returns; real returns vary. The SIP money not yet invested would sit in a bank or liquid fund and earn something, which this table ignores.
Real data: SIP vs lumpsum in two funds (AMFI NAVs)
| Fund (Direct Growth) | Window | Invested | ₹10k/month SIP value | Lumpsum on day 1 value | Lumpsum CAGR |
|---|---|---|---|---|---|
| UTI Flexi Cap Fund – Direct Growth | 2021-10-01 → 2026-09-30 | ₹6,00,000 | ₹6,94,011 | ₹7,34,195 | 4.12% |
| UTI Flexi Cap Fund – Direct Growth | 2016-10-03 → 2026-09-30 | ₹12,00,000 | ₹20,97,855 | ₹35,58,692 | 11.49% |
| UTI Flexi Cap Fund – Direct Growth | 2013-10-01 → 2026-09-30 | ₹15,60,000 | ₹34,50,934 | ₹85,87,967 | 14.01% |
| UTI Nifty 50 Index Fund – Direct Growth | 2021-10-01 → 2026-09-30 | ₹6,00,000 | ₹6,69,948 | ₹8,12,178 | 6.24% |
| UTI Nifty 50 Index Fund – Direct Growth | 2016-10-03 → 2026-09-30 | ₹12,00,000 | ₹20,07,507 | ₹34,14,478 | 11.03% |
| UTI Nifty 50 Index Fund – Direct Growth | 2013-10-01 → 2026-09-30 | ₹15,60,000 | ₹32,02,367 | ₹68,81,425 | 12.09% |
Method: SIP on the 1st of each month (or next NAV date), lumpsum of the same total on the first date, both valued at the 30 Sep 2026 NAV. Ignores stamp duty (0.005%) and taxes. Source: AMFI NAV history. Two funds chosen as examples of an index fund and an active flexi-cap fund from one AMC; not a recommendation. Past performance may or may not be sustained.
In all six windows the lumpsum ended ahead because Indian equities rose over these periods. The gap narrows in weaker stretches (the 5-year windows) — exactly when an investor who put everything in at the start would have felt most regret.
Chart: same ₹12 lakh, two ways (12% assumed)
When SIP, lumpsum or STP makes sense
| Situation | Usually suits |
|---|---|
| Investing from monthly salary | SIP (consider a yearly step-up) |
| Large sum, long horizon (10+ years), can sit through a fall | Lumpsum, or a short STP |
| Large sum, nervous about a market fall | STP over 6–12 months |
| Money needed within 3 years | Neither in equity — use FD/RD or debt |
Plan the monthly route with the SIP calculator or step-up SIP calculator; for a one-time amount use the lumpsum calculator. Wondering which date to pick for your SIP? Our SIP date study found it barely matters. Measure real results with XIRR, not simple returns (XIRR vs CAGR).
The most expensive choice is neither
It's leaving the money in a savings account “until the market corrects”. I've watched lumpsums sit idle for a year or more waiting for a dip that didn't come on schedule. If you can't decide, park it in a liquid fund and move it in monthly instalments (an STP). You stay invested in something while you spread the entry.
Frequently asked questions
SIP or lumpsum: which gives higher returns?
At a constant return, a lumpsum of the same total always ends higher because all the money compounds from day one: ₹12 lakh invested at once at 12% for 10 years ≈ ₹37.27 lakh, versus ₹23.23 lakh from ₹10,000 a month. In real markets the answer depends on the path — a lumpsum just before a fall can trail a SIP for years.
What happened in real data?
Using AMFI NAVs for UTI Nifty 50 Index Fund (Direct Growth), ₹12 lakh invested on 2016-10-03 was worth about ₹34.14 lakh on 2026-09-30, while ₹10,000 a month over the same 120 months was worth about ₹20.08 lakh. The lumpsum also took full market risk from day one; past windows do not predict future ones.
Why do people still prefer SIP?
Most investors earn monthly, so a SIP matches cash flow. It also removes the need to time the market and makes falls less painful because later instalments buy more units. The 'SIP vs lumpsum' question really only arises when you already hold a large sum.
What is an STP and when should I use it?
A systematic transfer plan parks a lumpsum in a liquid or arbitrage fund and moves a fixed amount into an equity fund every week or month. It suits investors who have a large amount but are worried about investing it all at a market peak — usually over 6–12 months rather than years.
Does the calculator compare equal amounts?
The inputs let you set the SIP and lumpsum separately. The extra row 'If SIP total were invested on day 1' shows the like-for-like comparison: the same total rupees invested at once at the same assumed return.
Educational tool only — not investment, tax or legal advice. Figures are formula-based illustrations using the stated assumptions; actual outcomes depend on notified rates, rules and your specific facts. Verify with official sources or a qualified professional before acting. Findost (findost.io) and PaisaGuru by Findost are not affiliated with Findoc, FinDost, or other similarly named brands. PaisaGuru is the AI wealth concierge of Findost.