Sip Calculator
This is the most Googled question in Indian personal finance: SIP or Lump Sum — which gives better returns? The honest answer is: it depends on the market timing. But don't worry — we'll show you the exact numbers, and you can calculate your own scenario below.
The Core Difference
SIP (Systematic Investment Plan) spreads your investment over time — ₹10,000/month for 10 years = ₹12 lakh invested gradually. Lump Sum means investing ₹12 lakh all at once on Day 1. Both methods invest the same total capital. The question is purely about timing.
Side-by-Side Comparison: ₹12 Lakh Total Investment @ 12% CAGR over 10 Years
| Scenario | Method | Total Invested | Final Corpus | Net Gain |
|---|---|---|---|---|
| Bull Market Entry | Lump Sum | ₹12 L | ₹37.27 L | ₹25.27 L |
| Bull Market Entry | SIP ₹10k/mo | ₹12 L | ₹23.23 L | ₹11.23 L |
| Volatile Market | Lump Sum | ₹12 L | ₹22 L (est.) | ₹10 L |
| Volatile Market | SIP ₹10k/mo | ₹12 L | ₹26 L (est.) | ₹14 L |
Compare SIP vs Lump Sum Side-by-Side ↓
⚡ SIP vs Lump Sum Calculator
📅 SIP
(Equal monthly installments)
Corpus
-
💰 Lump Sum
(Invested on Day 1)
Corpus
-
Assumes 12% CAGR. Advanced Calculator →
When Lump Sum Wins
- Market is at a historical low (like March 2020 COVID crash)
- You are certain about a long bull run ahead
- You have a large surplus that will otherwise sit idle in a savings account
When SIP Wins
- Market is at an all-time high and correction risk is high
- You don't have a lump sum — just monthly savings
- You are emotionally prone to panic selling during crashes
- You want a disciplined, hands-off investment approach
The Verdict: What Should You Choose?
For 90% of Indian investors: Start a SIP today.
If you have idle savings too, make a lump sum investment in a debt fund or index fund. Then run a SIP from your monthly income. This hybrid approach is the gold standard.
Use Both Calculators on mysipcalc.in ↓
Toggle between SIP and Lumpsum mode on our calculator to compare both scenarios for your exact numbers.
Open Calculator →Frequently Asked Questions
Which gives better returns: SIP or lump sum?
Lump sum beats SIP in consistently rising markets. SIP beats lump sum in volatile or falling markets due to rupee-cost averaging. For most retail investors, SIP is safer.
Can I invest both SIP and lump sum?
Yes. Many investors do a lump sum investment initially and continue a monthly SIP. This hybrid approach is often the most effective strategy.
What is better for a 10-year horizon?
Over 10 years, both approaches can deliver similar CAGR. SIP is better for salaried individuals; lump sum is better if you have surplus capital during a market downturn.
Is SIP safer than lump sum?
Generally yes. SIP spreads market risk over time through rupee-cost averaging. Lump sum carries the risk of investing at a market peak.