Lumpsum Calculator
Calculate the future value of a one-time lump sum investment using compound growth. Enter your investment amount, expected annual return, and time horizon to see how your money grows.
Educational Purpose Only: Results are illustrative estimates and not financial advice.
How it works
A lump sum investment means putting a single large amount into an investment vehicle — a mutual fund, fixed deposit, or stock — all at once, rather than spreading it out over time. The future value is calculated using the compound interest formula: A = P × (1 + r/100)^n, where P is the principal, r is the annual return rate, and n is the number of years.
Lump sum investing works best when you have a windfall — a bonus, inheritance, or maturity proceeds — that you want to put to work immediately. Over long periods, even modest returns compound into substantial wealth. For example, ₹1,00,000 invested at 12% per annum for 20 years grows to over ₹9.6 lakhs without any additional contributions.
Lumpsum vs SIP
While a lump sum puts all your capital to work immediately — maximising potential gains in a rising market — it also exposes you to the risk of investing at a market peak. A Systematic Investment Plan (SIP) spreads your investment over time, averaging out the purchase price. If you have a large sum available and a long investment horizon, a lump sum in an equity mutual fund can be highly rewarding. If you are unsure about market timing, consider splitting the amount into a lump sum plus a SIP over 6–12 months.
This calculator is for educational and illustrative purposes only. Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. Please read all scheme-related documents carefully before investing.