Decision engine
SIP vs Lumpsum vs STP
One set of inputs, three strategies, one plain verdict — compared on real, post-tax value, not the flattering nominal number.
Educational tool — not investment advice. Figures are estimates based on your inputs, not predictions. Read the full disclaimer
Real value (today's rupees), after tax:
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In shortIf you already have the whole amount, investing it at once as a lump sum usually ends higher, because all of the money is invested for longer. A SIP suits money that arrives monthly from income and reduces the risk of investing everything just before a fall. An STP is the middle path for an existing lump sum.
Questions
Frequently asked
Is the comparison fair?
We assume lumpsum and STP invest the same total cash as the SIP, but available today. That's the honest catch: lumpsum usually wins on paper precisely because it assumes you already have the full sum, which most people don't.
How is STP modelled?
As a lump sum parked and fed into equity over about a year, approximated with a small drag versus pure lumpsum. The exact figure depends on the parking instrument; see the methodology page.
Same money, two ways: SIP vs lump sum
Each row invests the same total, either as ₹10,000 a month or all at once on day one, at an assumed 12% a year. The lump sum ends higher because every rupee is invested from the start. That advantage only exists if you actually have the whole amount today.
| Period | Total invested | SIP value | Lump sum value |
|---|---|---|---|
| 5 years | ₹6.0 lakh | ₹8.0 lakh | ₹10.6 lakh |
| 10 years | ₹12.0 lakh | ₹22.2 lakh | ₹37.3 lakh |
| 15 years | ₹18.0 lakh | ₹47.1 lakh | ₹98.5 lakh |
| 20 years | ₹24.0 lakh | ₹91.1 lakh | ₹2.32 crore |
Before tax and inflation. Returns are an assumption, not a forecast.
Understand the concept: SIP vs Lumpsum: Which Is Better?