The comparison between a monthly SIP and a lumpsum investment is one of the most common ways to understand the effect of compounding. A SIP calculator helps estimate how regular monthly investments may grow over time, while a lumpsum calculator shows how a one time investment may build wealth when invested for a long period.
This article compares a ₹10,000 monthly SIP with a ₹10 lakh lumpsum investment over 25 years, assuming an annualised return of 12%.
Both the SIP calculator and lumpsum calculator are based on the same assumed annualised return and the same time period. The main difference lies in how the money enters the investment.
In the SIP example, the investor contributes ₹10,000 every month for 25 years. In the lumpsum example, ₹10 lakh is invested at the beginning and remains invested for the entire period. This creates two different compounding journeys.
A monthly SIP of ₹10,000 for 25 years results in a total invested amount of ₹30,00,000. At an assumed annualised return of 12%, the total value of the investment becomes ₹1,89,76,351.
The estimated return in this case is ₹1,59,76,351. Since money is invested every month, each instalment gets a different amount of time to compound. The first few instalments remain invested for a long period, while later instalments have a shorter compounding period.
This structure shows how a SIP calculator captures both regular investing and compounding together. The final value is shaped by three factors: the monthly contribution, the return assumption and the number of years.
A lumpsum investment of ₹10 lakh for 25 years grows to ₹1,70,00,064 at an assumed annualised return of 12%.
The invested amount in this case is ₹10,00,000 and the estimated return is ₹1,60,00,064. Since the full amount is invested at the start, the entire capital gets the benefit of compounding for the full 25 years.
This is where the lumpsum calculator becomes useful for understanding the effect of early capital deployment. Even though the invested amount is lower than the SIP example, the return generated is slightly higher because the full amount remains invested from day one.
Read More: SIP vs Lumpsum Calculator: How ₹10 Lakh Lumpsum and ₹20,000 Monthly SIP Grow Over 20 Years?
The SIP calculator shows that investing ₹10,000 every month for 25 years can grow to ₹1,89,76,351 at an assumed annualised return of 12%. The lumpsum calculator shows that a one time investment of ₹10 lakh can grow to ₹1,70,00,064 over the same period and return assumption.
The SIP has a higher final value because the total invested amount is ₹30 lakh. The lumpsum investment has a slightly higher estimated return because the full ₹10 lakh remains invested for the entire 25 years.
This comparison of a ₹10,000 SIP and a ₹10 lakh lumpsum investment highlights the role of compounding, time and cash flow. At an assumed annualised return of 12% for 25 years, the SIP creates a higher final value, while the lumpsum investment generates a slightly higher estimated return.
Read stock market news in Hindi. Head to Angel One's share market news in Hindi for comprehensive coverage.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Published on: Jun 19, 2026, 1:33 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
