Lump-sum vs monthly investing: which came out ahead?
This compares investing the same total amount all at once ('lump-sum') versus spreading it out monthly ('recurring') over a 10-year S&P 500 window, to see how the method changes the outcome.
Investment conditions
Asset · S&P 500 ETF (SPY) · lump-sum vs monthly (same total)
Method · Comparison
Lump-sum maximizes time in the market but fully bears entry-timing risk. Recurring investing spreads your average cost to reduce timing risk, but in a rising market the later contributions earn less. Use the calculator below to see the difference in maximum drawdown between the two approaches.
Open in comparison calculatorWhy this period and asset
'Should I invest a windfall all at once or spread it out?' is one of the most common dilemmas. In periods when the market generally rose, investing earlier (lump-sum) tends to win thanks to more compounding time — but if a crash follows right after entry, recurring investing cushions the blow both psychologically and in returns.
Caveats & limits
Figures use adjusted close and exclude exchange rates, fees, and taxes. There is no conclusion that one method is 'always' better; the advantage depends on market conditions at entry and your personal risk tolerance.
Data sources & limits
- Trading fees and taxes are not reflected — figures are pre-tax.
- Based on historical data; does not guarantee future returns.
Frequently asked questions
Is lump-sum always better?
No. In periods when the market rose, investing earlier tends to win, but if a downturn follows right after entry, recurring investing softens the drawdown. Neither is always superior.
What is the advantage of recurring investing?
It spreads your purchase price over time, reducing the risk of putting everything in at a peak. In exchange, uninvested cash carries an opportunity cost in a rising market.
How do their drawdowns differ?
Lump-sum takes an early decline on the full amount, while recurring investing still has uninvested cash, so the early drawdown feels smaller. Compare the maximum drawdown directly in the calculator.
Does this page recommend a method?
No. It only shows the difference between methods using historical data and recommends no investing method.
Related scenarios
📋 结果基于历史数据计算,过去的收益不代表未来的收益。
📋 本服务旨在帮助理解投资、供教育之用,并非投资建议。
⚠️ 各资产的波动性与风险水平不同,仅凭收益率无法判断孰优孰劣。