---
title: "Lump Sum vs SIP Calculator: Which Grows More | RupeeCase"
description: "Compare investing a sum at once with spreading it over months: the end value of each, the gap, and what research says about how often each comes out ahead."
source_url: "https://www.rupeecase.com/learn/tools/lump-sum-vs-sip"
---

Lump sum, invested on day one**₹37.3 L**
Spread over 12 months**₹35.4 L**
Lump sum ahead by**₹1.87 L**
Same total invested**₹12.0 L**

* Lump sum
* Spread

At one constant return the lump sum always ends ahead, because it is invested for longer. Spreading only wins when prices fall during the spreading months, which a constant return cannot show.
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  01How it works

## In plain words.
The lump sum is invested on day one. The spread route invests equal parts at the start of each month for the chosen months, and the money not yet invested earns nothing. Both then compound at the same monthly rate until the end of the holding period.

    The formula

`Lump sum: FV = A x (1 + i)^(12 x years)``Spread: each month k < months: balance = (balance + A / months) x (1 + i); after that balance x (1 + i)``i = (1 + r)^(1/12) - 1`

  02Worked example

## The default numbers, by hand.
Rs 12 lakh at 12% for 10 years: the lump sum ends near Rs 37.3 lakh; spread over 12 months it ends near Rs 35.4 lakh, because on average the money waits about six months before it is invested.

| Input | Value |
| --- | --- |
| Total amount | ₹12,00,000 |
| Expected return a year | 12% |
| Spread over | 12 months |
| Holding period | 10 years |

| Result | Value |
| --- | --- |
| Lump sum, invested on day one | ₹37.3 L |
| Spread over 12 months | ₹35.4 L |
| Lump sum ahead by | ₹1.87 L |
| Same total invested | ₹12.0 L |

  03Key concepts

## What to know before you use it.

### What the research found
Vanguard’s 2012 study of rolling 10 year periods in the US, UK and Australia found a lump sum ahead of spreading over 6 to 36 months in about two thirds of periods, mainly because markets rose more often than they fell and cash earned less.

### Why some still spread
Spreading lowers the chance of investing everything just before a fall, and the regret that comes with it. It does so at the cost of time in the market. A constant return cannot show that trade off; real prices that fall during the spreading months can.

### Good to know

* Some investors split the decision: part at once and the rest over 6 to 12 months.
* Money waiting to be spread can sit in a liquid fund; this calculator assumes it earns nothing.
* For a salary, a SIP is simply how the money arrives, so the question does not arise.

  04Assumptions

## What the calculator assumes.

* One constant return; the spread route invests at the start of each month.
* Uninvested money earns nothing.
* No tax or costs.

    Sources, checked 12 Oct 2026

1. [Vanguard research, Dollar-cost averaging just means taking risk later (Shtekhman, Tasopoulos, Wimmer, July 2012): lump sum ahead in about two thirds of rolling 10 year periods in the US, UK and Australia](https://corporate.vanguard.com/content/dam/corp/research/pdf/dollar_cost_averaging_just_means_taking_risk_later.pdf)

  05Questions

## Asked about the Lump sum vs SIP.
Is lump sum better than SIP?At any constant positive return the lump sum ends ahead, because it is invested for longer. Vanguard (2012) found a lump sum ahead in about two thirds of historical 10 year periods. Spreading came out ahead when prices fell during the spreading months.

What is an STP?A systematic transfer plan moves a lump sum from one fund, often a liquid fund, into another in fixed monthly parts. It is a way of spreading an amount you already have.

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06Keep going

## Learn the idea, see it applied.

  [Module 2.1Why Rules Beat Gut Feeling9 min read, Path 02](/learn/path-2/module-2-1-why-rules-beat-gut-feeling)[Module 8.2Loss Aversion and Prospect Theory11 min read, Path 08](/learn/path-8/module-8-2-loss-aversion-and-prospect-theory)[The matching indexNifty 50 Equal WeightAll 50 Nifty names, equal weight. The simplest card on the lineup.CAGR16.4%Sharpe1.13Max DD−15.7%Model, back tested, as of 27 Apr 2026. Not client returns, not a promise. Risk band: Moderate.](/strategies/nifty-50-equal-weight)

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  Education only, not investment advice. RupeeCase is a technology platform operated by QC Alpha Technologies Pvt Ltd; it is not a fund, a PMS or a SEBI registered investment adviser. Model returns are back tested and not a promise of future returns. Figures carry the date they were checked.