Lump Sum Calculator
Find out how much your one-time investment will grow based on expected returns and time horizon.
What Is a Lump Sum Calculator
A lump sum calculator estimates the future value of a one-time investment. Unlike SIP, where you invest monthly, a lump sum investment means putting in a fixed amount once and letting it grow over time at a given annual return rate.
Lump Sum Investment Formula
The formula used is:
FV = P × (1 + r)n
Where:
- FV = Future Value (maturity amount)
- P = Principal (one-time investment amount)
- r = Expected annual return rate (in decimal, e.g. 0.12 for 12%)
- n = Investment period in years
How to Use the Calculator
Enter the investment amount, expected annual return rate, and investment period in years. Click Calculate to see the projected future value, total gain, and return percentage.
Example Calculation
If you invest 5,00,000 as a lump sum at 12% annual return for 10 years, the future value is approximately 15,52,924. Your total gain is 10,52,924 — more than double the initial investment, thanks to compounding.
Lump Sum vs SIP
Lump sum investing works best when markets are at a low point, as the entire capital benefits from subsequent growth. SIP is better for regular investors without a large initial amount. Use both calculators to compare projected outcomes for your goals.
Lump Sum Calculator Tool
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FAQs
Is lump sum investment risky
Lump sum investing carries market timing risk. Investing at a market peak can reduce short-term returns, but over long horizons (10+ years) the impact tends to average out.
Can I use this for mutual fund projections
Yes, enter the expected CAGR of your fund as the annual return rate to project the future value of a lump sum mutual fund investment.
What is a realistic return rate to enter
For equity mutual funds, 10-14% is commonly used for long-term projections. For debt funds or FDs, 6-8% is more appropriate. The calculator does not guarantee any returns.