SIP vs Mutual Fund Lump Sum Calculator
Compare monthly SIP contributions versus one-time lump-sum investment at identical return rates.
SIP vs Mutual Fund Lump Sum Calculator
Compare monthly SIP contributions against a one-time Lump Sum investment over identical tenure and expected return.
âī¸Capital & Return Inputs
Lump Sum compounds 100% of capital from Day 1 in steadily rising markets.
What is the SIP vs Mutual Fund Lump Sum Calculator?
The SIP vs Lump Sum Calculator resolves the classic investor dilemma: Should you invest a lump sum all at once or spread it out via monthly SIPs?
Lump-sum investing benefits from immediate 100% compounding time in the market, while SIPs benefit from rupee-cost averaging during market drawdowns.
How Does the SIP vs Mutual Fund Lump Sum Calculator Work?
1. Enter Lump Sum Capital & Monthly SIP â E.g., âš1,20,000 lump sum vs âš10,000/mo SIP (same annual capital).
2. Set Expected CAGR % & Tenure â Select investment horizon (1 to 25 years).
3. Compare Final Corpus & Volatility Impact â See which strategy wins under rising, flat, or falling markets.
Formula & Calculation Method
$$\text{Lump Sum FV} = P \times (1 + r)^t$$
$$\text{SIP FV} = P_{\text{monthly}} \times \left( \frac{(1 + r/12)^{12t} - 1}{r/12} \right) \times (1 + r/12)$$
Example Calculation
Example: âš1,20,000 One-time vs âš10,000/mo SIP for 10 Years @ 12% CAGR
- Lump Sum Maturity: âš3,72,700
- SIP Maturity: âš2,32,300 (Total invested gradually over time)
- In a steadily rising market, lump sum wins because 100% of money compounds from Day 1!
Frequently Asked Questions
$$\text{Lump Sum FV} = P \times (1 + r)^t$$ $$\text{SIP FV} = P_{\text{monthly}} \times \left( \frac{(1 + r/12)^{12t} - 1}{r/12} \right) \times (1 + r/12)$$
Disclaimer: This financial calculator is provided for educational and estimation purposes only. ProCalc is not a registered financial advisor or SEBI entity. Rates and tax rules may vary.