Lumpsum Calculator
Calculate how your one-time investment grows over time. Enter the amount, expected annual return, and time period to see your projected wealth.
Lumpsum Calculator
Frequently Asked Questions
What is a lumpsum investment?
A lumpsum investment is a one-time investment of a large amount into a mutual fund, stock, or other financial instrument, as opposed to SIP where you invest small amounts regularly. Lumpsum works well when markets are undervalued.
How is lumpsum return calculated?
Lumpsum returns use compound interest: A = P(1 + r)^t, where P is the invested amount, r is the annual rate of return, and t is the number of years. Your profit is the final value minus the principal.
Is lumpsum better than SIP?
Lumpsum gives higher returns if invested when markets are low. SIP reduces timing risk through rupee cost averaging. A combination of both works best for most investors — lumpsum during market corrections and regular SIP for discipline.
What is a good expected return for lumpsum in mutual funds?
For equity mutual funds in India, historical lumpsum returns average 12-15% CAGR over 10+ years. Large-cap funds deliver 10-12%, mid-cap 14-16%, and small-cap 15-20% over long periods, though past performance doesn't guarantee future returns.
How to Use This Lumpsum Calculator
Enter the amount you want to invest, the expected annual return rate, and the investment duration. The calculator shows you the projected final value and total profit earned through compounding.
When to Choose Lumpsum Over SIP
- When markets have corrected significantly (10-20% fall)
- When you receive a bonus, inheritance, or one-time income
- For long-term goals with 7+ year horizon
- When you have a large corpus sitting idle in savings account