Lumpsum Calculator
Calculate how your one-time investment will grow over time.
Calculate how your one-time investment will grow over time.
Show value in today's money
Total Value
โน3,10,585
| Year | Invested | Interest | Total Value |
|---|---|---|---|
| 1 | โน1,00,000 | โน12,000 | โน1,12,000 |
| 2 | โน1,00,000 | โน25,440 | โน1,25,440 |
| 3 | โน1,00,000 | โน40,493 | โน1,40,493 |
| 4 | โน1,00,000 | โน57,352 | โน1,57,352 |
| 5 | โน1,00,000 | โน76,234 | โน1,76,234 |
A lumpsum investment is a one-time investment where you invest a large amount of money at once, as opposed to spreading it out over time through methods like SIP. Lumpsum investments are ideal when you receive a windfallโsuch as a bonus, inheritance, or sale proceedsโand want to put the money to work immediately in mutual funds or other investment vehicles.
Market Timing: If you believe markets are at a relatively low point, a lumpsum investment can capture more upside as markets recover. However, timing the market is notoriously difficult, even for experts.
Available Capital: Lumpsum investing makes sense when you have a significant amount of money ready to invest. The entire corpus starts earning returns immediately, rather than waiting for gradual deployment.
Long Investment Horizon: With a longer time horizon (10+ years), short-term market volatility matters less. Historically, equity markets have trended upward over extended periods.
In a SIP, you invest fixed amounts regularly, which averages out your purchase price over time (rupee cost averaging). In a lumpsum investment, your entire capital is exposed to market movements from day one. This means higher potential returns in rising markets, but also higher risk in falling markets. Many investors use a combination of both strategiesโinvesting a portion as lumpsum and the rest through SIP.
This calculator estimates your lumpsum investment returns using the compound interest formula. Enter your one-time investment amount, expected annual return rate, and investment duration to see your projected corpus.
Formula used:
A = P ร (1 + r)^tWhere A = Final amount, P = Initial investment (principal), r = Annual return rate (as decimal), t = Time in years