Mutual Fund SIP vs Lumpsum Calculator

Compare investing a total amount as a mutual fund lumpsum versus spreading it as a monthly SIP over the same period.

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Last updated: 13-09-2026

Enter a total amount, expected return, and duration to compare lumpsum vs SIP investment outcomes.

Total amount to invest *

₹

Expected annual return *

Duration *

years

Your result

₹37,27,017.85

Lumpsum future value

SIP future value₹23,23,390.76

Difference₹14,03,627.09

AI explanation

Formula

Lumpsum: FV = total × (1+r)^years. SIP: same total spread as equal monthly installments, annuity-due formula

Worked example

₹12L over 10 years at 12%

Worked example: ₹12L over 10 years at 12%
Field	Value
Total amount to invest	₹12,00,000
Expected annual return	12
Duration	10
Lumpsum future value	₹37,27,017.85
SIP future value	₹23,23,390.76
Difference	₹14,03,627.09

Assumptions

Assumes the same annual return rate for both strategies — in practice, timing differences and market volatility can favor either approach depending on when the investment is made.
Lumpsum invests the full amount on day one, so it compounds for longer than an equivalent SIP, which is why lumpsum typically produces a higher future value at a constant assumed rate.

Frequently asked questions

Is lumpsum always better than SIP?

At a constant assumed return, yes, since a lumpsum investment compounds for the full period. In real markets with volatility, SIP's rupee-cost averaging can reduce the risk of investing a large sum right before a downturn.

When should I choose SIP over lumpsum?

When you don't have the full amount available upfront, or want to reduce timing risk by spreading investments across market ups and downs rather than committing everything at once.

Does this account for market volatility?

No — it assumes a constant return rate for simplicity. SIP's real-world advantage often comes from averaging purchase prices across volatile markets, which this simplified model doesn't capture.

Related calculators

Sources

Mutual Fund Systematic Investment Plans — Securities and Exchange Board of India (SEBI). Effective 01-01-2020, checked 13-09-2026.

Page last updated 13-09-2026.

This calculator provides a general estimate only and does not constitute investment advice. Mutual fund investments are subject to market risk.

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