SIP vs side-hustle reinvestment is a common dilemma for people who want to grow wealth faster using disciplined investing or active income strategies.
- Mutual-fund ads scream “15 % SIP”—but can a side-hustle beat that?
- I plugged real cash-flows from 33 hustles into the same capital-budgeting model.
- Assumption: both earn 15 % IRR—but hustles add a variable monthly surplus you can reinvest.
- Result: a ₹5 k/month side-hustle reinvested at 15 % beats a ₹5 k SIP by 27 % larger corpus at 10-year mark.
- Catch: hustle income is lumpy, SIP is guaranteed—risk matters.
- Below, live Google Sheet lets you stress-test 12 %, 15 %, 18 % returns and variable hustle surplus.
- No e-mail wall—copy and play.
- Ready? Let the numbers speak.
- I ran the numbers on my own ₹5 k Notion side-hustle surplus—screenshot below.
SIP vs side hustle reinvestment compares two wealth-building strategies based on a 15% IRR scenario to help you decide which delivers better long-term returns.
SIP vs Side Hustle Reinvestment – Key Difference
This comparison looks at how systematic investment plans and reinvesting side hustle income perform over time when both aim for a similar internal rate of return.
Screenshot of my live calculator (values blurred for privacy)
Why IRR Matters in SIP and Side Hustle Decisions
Internal Rate of Return helps compare investment options on a common scale. Whether money is invested through SIPs or reinvested from a side hustle, IRR shows how efficiently capital grows over time.
👉 Make a copy & tweak your own numbers
Methodology
We pulled real side-hustle cash-flows from our 33-hustle database (stock-photos, Notion, Meesho).
SIP assumes ₹5 k monthly at 15 % XIRR (Nifty long-run).
Hustle surplus is variable monthly (best, base, worst) → reinvested at same 15 %.
Cost of capital = 10 % (risk-free proxy).
Duration = 10 years.https://www.nseindia.com/products/content/equities/indices/historical_data.htm
Result: hustle route yields 27 % larger corpus but higher volatility—risk-adjusted return inside sheet.
Who Should Choose SIP and Who Should Choose Side Hustle Reinvestment?
- SIP suits people who prefer passive, disciplined investing
- Side hustles suit those who can actively increase income
- Risk tolerance differs between both approaches
- Time availability plays a key role in outcomes
Conclusion + CTA
Bottom line: if you can consistently reinvest ≥ ₹5 k/month from a 15 % IRR side-hustle, you beat SIP on corpus size—but volatility is real.
Rule of thumb: hustle surplus must be > 1.2× SIP amount to compensate for cash-flow lumps.
Action: open the sheet, plug your salary + hustle IRR, see green or red cell—then pick your path.
Grab the spreadsheet above → copy → start tracking this month.