Lumpsum Calculator

A lumpsum investment is a single one-time amount put into a mutual fund, stock or deposit and left to compound, rather than spread across monthly instalments. This lumpsum calculator shows what that one payment grows to — set the amount, expected annual return and horizon above to see the maturity value and total gain instantly.

The maths is the compound growth formula FV = P × (1 + r)^t, where P is the amount invested, r the expected annual return as a decimal and t the number of years. Returns from equity funds are not guaranteed, so treat the output as a projection at your assumed rate rather than a promise.

How is lumpsum maturity calculated?

Every year the investment grows by the return rate and the next year's growth applies to the larger balance, giving FV = P × (1 + r)^t. Rearranged, the gain is simply FV − P, and the year-wise table above shows the balance at each anniversary so you can see when the curve starts bending upward.

For example, ₹1,00,000 invested at an expected 12% a year for 10 years works out to 1,00,000 × (1.12)¹⁰ = ₹3,10,585, of which ₹2,10,585 is gain. The first year adds only ₹12,000, but the tenth year alone adds about ₹33,277 — the same 12% applied to a balance that has more than tripled. That accelerating tail is why lumpsum projections are so sensitive to the horizon you choose.

How to use this calculator

• Enter the investment amount — the single sum you are deploying today.
• Set an expected annual return you can defend: 10–12% is a common long-run assumption for diversified Indian equity funds, 6–8% for debt.
• Choose the time period; anything under five years makes an equity assumption risky, so lower the rate for short horizons.
• Read the invested amount, estimated returns and maturity value, and use the curve to see when growth accelerates.
• Open the year-by-year table to check the balance at each anniversary against the goal you are funding.

Lumpsum vs SIP — and the STP middle path

Deploying the same money at once versus spreading it out produces very different outcomes in a rising market. ₹6,00,000 invested as a lumpsum at 12% for 10 years grows to ₹18,63,509, while ₹5,000 a month for the same 10 years — also ₹6,00,000 in total — grows to ₹11,61,695. The lumpsum wins because every rupee compounds for the full decade, whereas the last SIP instalment compounds for a single month. That is the case for a lumpsum whenever you already hold the money: an annual bonus, a maturing FD, sale proceeds or a retirement payout.

The catch is timing risk. A lumpsum invested just before a sharp correction can sit underwater for years, and the calculator's smooth curve says nothing about that path. SIPs sidestep the problem by averaging your purchase price across market levels, which is why they suit money that arrives monthly out of salary. A Systematic Transfer Plan is the middle path: park the lump sum in a liquid or ultra-short debt fund, then transfer a fixed amount into an equity fund every week or month over 6–12 months. The idle portion still earns debt-fund returns while you average into equity — do note each STP instalment is a redemption from the debt fund, so capital-gains tax applies on those transfers.

Frequently asked questions