Lumpsum Calculator
About the Lumpsum Calculator
A lumpsum investment is a single, one-time amount put into a fund, deposit or scheme and left to grow. Because the whole amount is invested from day one, it compounds for the entire period — unlike a SIP, where each instalment compounds only from the month it is added.
This calculator shows what a one-time investment grows to at a fixed annual return over your chosen number of years, using compound growth. For market-linked investments the rate is not fixed, so the result is a projection based on the return you enter.
Frequently asked questions
How is lumpsum maturity calculated?
With the compound-interest formula: Future Value = P × (1 + r)ⁿ, where P is the amount invested, r is the annual return and n is the number of years. The longer the horizon, the more compounding adds on top of your principal.
Is a lumpsum better than a SIP?
It depends on timing and risk. A lumpsum benefits fully from a rising market but is exposed if markets fall right after you invest; a SIP spreads that risk by averaging your entry price. Many people use a lumpsum for money they already have and a SIP for ongoing savings.
Is the projected return guaranteed?
Only for fixed-rate products like FDs or PPF. For market-linked investments such as mutual funds or stocks the actual return varies, so the figure here is an estimate based on the rate you assume.
How does inflation affect the result?
The maturity value is in future rupees, which buy less than rupees today. To see the real, inflation-adjusted worth of your corpus, use our Inflation calculator alongside this one.
What return should I assume?
It depends entirely on where you invest — a bank FD, a debt fund and an equity fund have very different expected returns and risk. Modelling a conservative and an optimistic rate gives a more honest range than a single figure.