Rajkumar Anguluri·Software Engineer · Founder, Artha Engine·Last reviewed 13 April 2026·Methodology
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Lumpsum vs SIP
Got a lump sum to invest? See whether deploying it all at once or spreading it via SIP builds more wealth over your horizon.
Your numbers
Same total amount — deployed all at once vs spread monthly.
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Winner's corpus
₹15.5L
Lumpsum wins mathematically
Deploying the full ₹5L today builds ₹5.8L more because compounding starts on the full amount immediately.
Lumpsum wins on math but requires conviction to deploy all at once. If you'd panic-sell during a crash, SIP is safer behaviourally.
Lumpsum vs SIP
Lumpsum
₹15.5L
WinnerSIP
₹9.7L
Lumpsum wins by 60%.
Same total money, different deployment timing.
Lumpsum corpus
₹15.5L
SIP corpus
₹9.7L
Equivalent SIP
₹4,167
Difference
₹5.8L
Math favours lumpsum — but behaviour favours SIP
Markets go up 70% of the time, so deploying early wins. But if a 30% crash makes you sell, lumpsum becomes the worst strategy. Know yourself.
At a glance
- What it compares
- Same total amount deployed as a one-time lumpsum vs monthly SIP over the same period.
- Key insight
- Lumpsum wins mathematically most of the time because compounding starts on the full amount immediately.
- But watch out
- SIP wins behaviourally — if a 30% crash would make you sell, SIP is the safer choice.
- Verdict logic
- FV of lumpsum vs FV of equivalent monthly SIP at same expected return.
How It Works
This is the drill-down layer. The flagship flow leads with a recommendation, and this page lets you inspect the underlying model.
- Lumpsum FV = P × (1 + r)^n.
- SIP monthly = total / (years × 12). SIP FV = standard SIP formula.
Assumptions
The recommendation stays blunt, but the assumptions remain visible.
- Same expected return for both strategies.
- No tax impact modeled.
- SIP amount = total / total months.
FAQ
The follow-up questions people usually ask after the main recommendation is already clear.
Should I always lumpsum?
Only if you can handle short-term volatility. Markets drop 20%+ regularly. If that would make you sell, SIP is better despite the math.
What about deploying in 3-6 monthly chunks?
A middle ground that captures most of the lumpsum advantage while reducing timing risk. Reasonable for amounts over ₹5L.
Sources & references
Every formula and assumption above is grounded in these authoritative sources.
Related tools & decisions
Keep going from here — each link carries the same cluster context.
What to do next
Calculations and decision frameworks, not personalised financial advice. The numbers on this page are based on the inputs you supplied and the regulatory rules in effect when this page was last reviewed. They are not a recommendation to buy, sell, hold, port, or surrender any specific financial product. Consult a SEBI-registered investment advisor, a qualified tax professional, or a licensed insurance broker before acting on a financial decision involving your money.
Artha Engine is an educational decision-support website. We do not offer loans, sell insurance, distribute mutual funds, provide regulated investment advice, collect loan applications, or receive commissions from banks, insurers, AMCs, brokers, or other financial providers. References to RBI, SEBI, IRDAI, Income Tax Department, or other authorities are source citations only. Artha Engine is not affiliated with, endorsed by, or sponsored by any government authority, regulator, bank, insurer, AMC, or broker. Artha Engine does not charge users fees for using calculators, comparison tools, articles, or financial health scoring. Mailing address: India.
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