Lumpsum Calculator
A lumpsum is a one-time investment, unlike a SIP where you invest every month. This calculator shows what a single amount could grow to over the years at a return you expect, using annual compounding.
Last reviewed:
- Estimated future value
- ₹3,10,585
- Amount invested
- ₹1,00,000
- Estimated returns
- ₹2,10,585
- Returns are assumed, not guaranteed. Market-linked returns vary and can be negative. Taxes and expense ratios are not deducted.
Year-wise growth
| Year | Estimated value |
|---|---|
| 1 | ₹1,12,000 |
| 2 | ₹1,25,440 |
| 3 | ₹1,40,493 |
| 4 | ₹1,57,352 |
| 5 | ₹1,76,234 |
| 6 | ₹1,97,382 |
| 7 | ₹2,21,068 |
| 8 | ₹2,47,596 |
| 9 | ₹2,77,308 |
| 10 | ₹3,10,585 |
Compare it with the SIP calculator to see how investing at once differs from investing gradually.
How to use this calculator
- Enter the amount you plan to invest.
- Enter the return you expect per year.
- Enter the number of years.
- Read the future value, the returns and the year-wise table.
Formula and variables
Future value = P × (1 + r)^t
- P - the amount invested.
- r - expected annual return as a decimal (12% = 0.12).
- t - number of years.
Worked example
₹1,00,000 invested once at an expected 12% a year for 10 years.
| Amount | ₹1,00,000 |
|---|---|
| Return and period | 12% for 10 years |
| Future value | ₹3,10,585 |
| Returns | ₹2,10,585 |
- Growth factor = 1.12¹⁰ = 3.1058.
- Future value = 1,00,000 × 3.1058 = ₹3,10,585.
- Returns = 3,10,585 − 1,00,000 = ₹2,10,585.
What changes the result
- Return rate. Even small differences in the rate make a large difference over long periods.
- Time. Compounding works best over long periods, as returns earn returns.
- Taxes. Capital gains tax reduces what you finally keep. Use the capital gains calculator.
- Costs. Expense ratios and fees lower the net return.
Benefits and practical uses
- See the long-term effect of a one-time investment.
- Compare lumpsum with SIP.
- Set realistic goals with a year-wise view.
Assumptions and limitations
- Returns are assumed to be constant and compounded annually.
- No taxes, exit loads or expense ratios are deducted.
- Market-linked returns are not guaranteed.
Frequently asked questions
What is a lumpsum investment?
Investing a single amount at one time, instead of in instalments.
How is lumpsum return calculated?
Future value = amount × (1 + annual return)^years.
Is lumpsum better than SIP?
It depends. A lumpsum is exposed to market levels on one day, while a SIP spreads the entry over time. Compare both for your situation.
What return should I assume?
Use a cautious figure. Past returns do not guarantee future returns, and equity returns vary a lot year to year.
Are returns taxed?
Yes, as capital gains or interest depending on the product. Taxes are not deducted here.
References
Page last reviewed on . This calculator gives estimates for planning only; it is not financial advice and not an offer from any lender.