Logo
Financial Calculator

SIP vs Lumpsum Calculator India 2025

Compare SIP vs Lumpsum—see which investment style helps you reach your goal faster.

₹
₹10L₹10Cr
years
1 year30 years
%
6%20%

Consider Inflation

Adjust your goal for inflation to maintain purchasing power

%
2%10%

Inflation-adjusted goal: ₹1.79 Cr (+₹79.08 L)

One-time Investment Required

₹57.66 L

Lumpsum Investment Details

Total Gains:₹1.21 Cr
Final Amount:₹1.79 Cr
Investment Period:10 years

SIP Investment Details

Monthly SIP Amount

₹77.08 K

Total Investment:₹92.49 L
Total Gains:₹86.59 L
Final Amount:₹1.79 Cr
Key Insight

SIP requires 60.4% more total investment but is easier on cash flow with monthly installments.

SIP vs Lumpsum: Choose Your Investment Strategy

Our SIP vs Lumpsum calculator helps you determine exactly how much to invest to reach your financial goals. Whether you prefer monthly SIP investments or a one-time lumpsum investment, this tool shows you the precise amounts needed for your target wealth accumulation.

SIP (Systematic Investment Plan) allows you to invest smaller amounts monthly, making it easier on your cash flow. With rupee cost averaging, you buy more units when prices are low and fewer when prices are high, potentially reducing your average cost over time. SIP is ideal for salary earners who want to build wealth systematically.

Lumpsum investment requires a larger upfront amount but is more capital efficient since your entire investment gets the full compounding benefit for the entire duration. If you have a windfall, inheritance, or surplus funds available, lumpsum can be an excellent choice.

The key difference is cash flow and timing. SIP spreads your investment over time with smaller monthly commitments, while lumpsum requires significant upfront capital but typically needs a lower total investment to reach the same goal due to longer compounding periods.

Choose SIP If You

  • Have regular monthly income and want to invest systematically
  • Want to benefit from rupee cost averaging in volatile markets
  • Prefer smaller monthly commitments over large lump sums
  • Want disciplined investing without timing the market

Choose Lumpsum If You

  • Have surplus funds available for immediate investment
  • Want maximum capital efficiency and compounding benefits
  • Have received a windfall, bonus, or inheritance
  • Believe markets are at attractive valuations

SIP vs Lumpsum Comparison Formulas

Mathematical formulas to compare SIP and lumpsum investment strategies.

1

SIP Future Value

Calculate future value of Systematic Investment Plan.

SIP FV = P × [((1 + r)^n - 1) / r] × (1 + r)

Example:

₹5,000 monthly SIP for 5 years at 12% annual return

5,000 × [((1 + 0.01)^60 - 1) / 0.01] × (1 + 0.01)
= ₹4,08,234

Variables:

P - Monthly SIP amount
r - Monthly return rate (Annual rate ÷ 12)
n - Number of months
2

Lumpsum Future Value

Calculate future value of lumpsum investment for comparison.

Lumpsum FV = P × (1 + r)^n

Example:

₹3,00,000 lumpsum for 5 years at 12% annual return

3,00,000 × (1 + 0.12)^5
= ₹5,28,702

Variables:

P - Initial lumpsum amount
r - Annual return rate
n - Number of years

These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.

SIP vs Lumpsum Calculator FAQs

Get answers to common questions about choosing between SIP and Lumpsum investment strategies for your financial goals.

How does this calculator determine the investment amounts?

This calculator works backwards from your goal. You set your target amount and time horizon, then it calculates exactly how much you need to invest monthly (SIP) or one-time (Lumpsum) to reach that goal at your expected return rate.

Which is better - SIP or Lumpsum investment?

It depends on your situation. SIP requires less capital upfront and provides rupee cost averaging, while Lumpsum can be more efficient if you have the full amount available and invest at the right time. SIP is generally better for regular income earners.

Why does SIP require more total investment than Lumpsum?

SIP investments are spread over time, so earlier investments get more time to compound, but later investments get less time. Lumpsum gets the full compounding benefit for the entire period, making it more capital efficient.

How accurate are these calculations?

These calculations assume a constant annual return rate. Real market returns fluctuate, but this gives you a baseline for planning. Consider this as a guideline and review your investments regularly.

Should I consider inflation in my goal amount?

Yes, definitely! The goal amount should account for inflation. For example, if you need ₹1 Cr in today's purchasing power after 10 years, factor in 6-7% annual inflation to set a higher target.