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Lumpsum vs SIP: how a one-time investment grows

Updated: 14 November 2026

An educational illustration, not financial, tax or investment advice. Figures are estimates from the formula shown. Your bank, fund house or the official scheme rules decide the actual amount.

Open the lumpsum calculator

Lumpsum vs SIP is a question about timing, not about which product is better. A lumpsum puts all the money to work on day one. A SIP feeds it in month by month. With the same return, the lumpsum ends higher because the money is invested for longer. A SIP spreads the risk of investing everything just before a fall.

Quick answer

  • ₹1,00,000 invested once at an assumed 12% a year for 10 years grows to about ₹3,10,585.
  • The same ₹1,00,000 split into 120 monthly SIPs of ₹833 grows to about ₹1,93,616 at the same rate.
  • At 12% a year, money roughly doubles every 6.1 years.
  • A lumpsum gains more in a rising market. A SIP hurts less if the market falls soon after you start.

How a lumpsum grows

The lumpsum calculator compounds once a year:

Value = Amount × (1 + yearly return)years

₹1,00,000 for 10 yearsEstimated value
At 8% a year₹2,15,892
At 12% a year₹3,10,585
Same ₹1,00,000 as a SIP of about ₹833 a month, at 12%₹1,93,616

Why the SIP ends lower here

The first SIP instalment is invested for 10 years, but the last one for only a month. On average the money is invested for about half the time. That is the price of spreading your entry. If the market falls in the first year, the SIP buys more units at lower prices, and the lumpsum takes the full fall. Nobody knows in advance which will happen.

The rule of 72

Divide 72 by the yearly return to estimate how many years money takes to double. At 12%, 72 ÷ 12 = 6 years. The exact figure is 6.1 years, which the calculator shows.

Which one fits you

  • Money arriving every month (salary): a SIP matches how you earn.
  • A large sum now (bonus, sale, maturity): a lumpsum, or a lumpsum parked in a deposit and moved in steps.
  • A fixed, guaranteed return: compare with an FD. It cannot fall, but it is taxed as income.

How to use the lumpsum calculator

  1. Enter the amount you will invest once.
  2. Enter an expected yearly return. Try a low, middle and high rate.
  3. Enter how many years you will stay invested and read the value and the gain.

To see what growth a past investment actually achieved, use the CAGR calculator and read how to calculate CAGR.

Limits

A steady return is assumed. Real returns vary year to year. Fees, taxes and inflation are not included. This page does not say whether markets will rise or fall.

Sources

If this page and the official notice disagree, follow the notice.

FAQ

Is lumpsum better than SIP?
Not always. At the same steady return a lumpsum ends higher, because the money is invested longer. A SIP reduces the damage of investing everything just before a fall.
What will ₹1 lakh become in 10 years at 12%?
About ₹3,10,585, compounded once a year. At 8% it is about ₹2,15,892.
What is the rule of 72?
Divide 72 by the yearly return to estimate the years to double. At 12% that is about 6 years; the exact figure is 6.1.
Can I do both?
Yes. Many people invest a lump sum they already have and run a SIP from their monthly income.
Does the calculator include tax?
No. The value is before tax, fund charges and inflation.

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