Financial Calculators
Lumpsum vs SIP Calculator
A bonus, arrears or terminal benefits arrive at once. Should they go in at once?
Lumpsum finishes ahead by
₹1,41,921
- Invested all at once
- ₹39,60,464
- Spread over 12 months
- ₹38,18,543
Assumes a constant return in both paths, which is why the lumpsum wins on paper: money in the market earlier compounds longer. Staggering is insurance against investing everything just before a fall; the difference shown is the price of that insurance.
These figures are for illustrative purposes only and are not investment advice. Please consult your investment adviser for investment related advice.
Time in the market versus timing the market
Mathematically, money invested earlier compounds longer, so with a steady return the lumpsum always finishes ahead. Emotionally, investing everything the week before a correction is hard to live with. Staggering the deployment over a few months is the compromise most investors reach for, and this calculator prices it.
The undeployed balance is not idle: it sits in a liquid or overnight fund earning a modest return until its turn, exactly as a Systematic Transfer Plan works.
Two exact simulations
Lumpsum: amount x (1 + e/12)^(months)\nStaggered: each month move amount/N into equity; equity grows at e/12, the remainder at p/12Worked example: Rs 12,00,000 deployed at once at 12% grows to Rs 39,60,464 in 10 years. Spread over 12 months with the balance earning 6.5% in a liquid fund, it grows to Rs 38,18,543. The lumpsum finishes ahead by Rs 1,41,921, the price of avoiding a badly timed entry.
Frequently asked questions
So lumpsum is always better?
On a constant return, yes. Real markets are not constant: research on Indian and global data finds lumpsum wins roughly two times in three, and staggering wins in the third case, sometimes by a lot. The calculator shows the expected cost of the insurance, not whether you should buy it.
How long should I stagger over?
Three to twelve months is common. Beyond that, the cost of waiting usually outweighs the protection. The larger the amount relative to your existing portfolio, the more staggering makes sense.
Is this the same as an STP?
Yes in structure. A Systematic Transfer Plan automates exactly this: park in a debt fund, transfer a fixed amount to equity monthly. The STP calculator models it with the transfer amount as the input.
What about terminal benefits at retirement?
The same logic, with one difference: money you will need in the first few years of retirement should not be going into equity at all. Split the corpus by when you need it before deciding how fast to deploy the long-term part.
Deploy with a plan, not a mood.
We help clients stage large amounts into the market with a written schedule so no single day decides the outcome.