Unlike a SIP, a lumpsum investment is made all at once and then left to compound. This calculator projects its future value using standard compound-interest maths.
How to Use This Calculator
- Enter your lumpsum investment amount.
- Enter the expected annual rate of return.
- Enter the investment period in years.
- View the projected future value and estimated gains.
How the Calculation Works
Future Value = P × (1 + r)^n
Where P = principal invested, r = expected annual rate of return, and n = number of years.
Worked Example
A lumpsum of ₹5,00,000 invested for 10 years at an assumed 12% annual return grows to approximately ₹15.5 lakh, an estimated gain of around ₹10.5 lakh — actual returns depend on market performance.
Who Should Use This
Investors with a one-time amount (such as a bonus, inheritance, or maturity proceeds from another investment) deciding how it might grow if invested for a set period.
Important Considerations
The rate of return you enter is an assumption for market-linked instruments and is never guaranteed. This calculator does not account for taxes on gains, which vary by instrument and holding period.
Common Mistakes
Forgetting to account for tax on capital gains when comparing the projected future value against a fixed-income alternative like an FD can make the comparison misleading.
References
See also the SIP Calculator for a comparison with a phased-investment approach.