SIP vs Lumpsum Return Comparison Calculator
Compare a one-time lumpsum investment head-to-head against a monthly SIP over identical horizons and solve the exact equivalent monthly SIP. Benchmarked against India’s published RBI Repo Rate (5.5%) and MoSPI Headline CPI Inflation (5.54%).
Head-to-Head: ₹10,00,000 Lumpsum vs ₹10,000/Month SIP (10 Years @ 12% p.a.)
Equivalent Monthly SIP required to match ₹10L Lumpsum maturity: ₹13,368/month.
| Strategy | Principal Deployed | Nominal Maturity | Real CPI Value (5.54%) |
|---|---|---|---|
| One-Time Lumpsum | ₹10,00,000 | ₹31,05,848 | ₹18,11,379 |
| Monthly SIP | ₹12,00,000 | ₹23,23,391 | ₹13,55,038 |
Frequently Asked Questions
Why does a lumpsum earn higher gains than an equal-principal SIP at a constant return?
In a lumpsum investment, 100% of capital is deployed on Day 1 and compounds for the entire tenure, whereas SIP installments enter gradually and experience an average compounding duration of roughly half the tenure.
What is the equivalent monthly SIP for a given lumpsum?
The equivalent monthly SIP is the exact monthly contribution required at the same annual return and tenure to reach the identical final maturity value as the one-time lumpsum.
Why do investors still use SIPs if lumpsum mathematically compounds longer?
Most salaried households generate investable surplus monthly rather than upfront, and SIPs average purchase NAVs across volatile market cycles (rupee-cost averaging).