About the Lump Sum vs. Monthly Investing Calculator
If you have a lump sum — an inheritance, bonus, or rollover — should you invest it all at once or ease in over time? This calculator compares the two at the same return, so you can weigh the higher expected value of investing now against the lower risk of spreading it out.
How it’s calculated
Lump sum: the whole amount grows for the full period. Monthly: the amount is split into equal deposits invested over the period. Both are projected at the same return and compared.
Example calculation
Investing $60,000 immediately versus spreading it over 5 years at 8% leaves the lump sum ahead by roughly $16,000 — the cost of waiting to invest.
Frequently asked questions
Which usually wins?
With a positive expected return, investing the lump sum immediately typically ends with more, because the full amount compounds for longer. But it also risks a drop right after you invest.
When does spreading it out make sense?
When the risk of a bad-timing drop would rattle you into selling. Easing in trades some expected return for a smoother ride and fewer regrets.
Projections are illustrative and assume a constant rate of return; real investments fluctuate and may lose value. Past performance does not guarantee future results. This is not investment advice.