All at once — or spread out?
Inheritance, severance, bonus: this compares both paths and gives you the number that actually matters — how far the market would have to fall during the entry phase for waiting to pay off.
A deterministic comparison of your assumptions — no probability statement and no market forecast.
Lump sum ends up ahead by €2,116.86.
Only if prices fall by more than 2% per year during those 12 months does the staggered entry win.
Lump sum
€135,373.04
Staggered
€133,256.18
Break-even price move
2%
| After the entry phase: lump sum | €52,500.00 |
|---|---|
| After the entry phase: staggered | €51,679.05 |
| Interest on waiting cash | €543.31 |
| Difference at the end | €2,116.86 |
No randomness involved: the price move during the entry phase is your input, everything else follows from it.
What this is really about
The question is not return, it is regret
Both paths have a clear profile — and a clear price.
On average the lump sum wins
Because equity markets rise more often than they fall, money waiting on the sidelines is usually money missing out. That is exactly what the calculator shows as soon as you assume a rising market.
Staggering buys calm
Seeing a 20% drop right after investing everything is what makes people sell at the worst moment. A staggered entry gives up some expected return and lowers precisely that risk.
The break-even makes it testable
Instead of arguing about forecasts, the calculator states how far prices would have to fall for waiting to have paid off. You can hold that number against your own view.
Frequently asked
Planning your entry
Investing a fixed amount regularly buys more shares when prices are low and fewer when they are high, which lowers the average price paid compared to buying a fixed number of shares. With a lump sum already in hand this is not an advantage though — it is only the flip side of part of the money not being invested yet.
If you go for a staggered entry, 6 to 12 months is common. Longer periods raise the expected return given up noticeably without improving the feeling of safety much further.
It is the reason the break-even is not at zero. If cash pays 2% and the market rises by less than 2% during the entry phase, the staggered path wins — exactly the point the calculator identifies.
A common compromise is investing half immediately and spreading the other half over a few months. Set the amount in the calculator to half to look at both building blocks separately.
Embed this calculator on your own site
Free, no sign-up, no tracking. A one-line snippet that resizes itself — for blogs, guides and comparison sites.
More calculators
You might also like
Don't just calculate — keep track
Planafolio follows your portfolio, taxes and retirement plan automatically. Start free, no credit card.
Start for free