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Lumpsum Calculator

Calculate the future value of a one-time investment. See how your money grows over time with the power of compounding.

Investment Details

One-time lump sum investment
%
Expected rate of return per year
years
How long you will stay invested
Rule of 72
Your money doubles every 6.0 years at 12% return
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Enter investment details to see your wealth growth

About Lumpsum Calculator

A lumpsum investment is a one-time investment of a large amount of money, as opposed to periodic investments like SIPs. This calculator shows you how your single investment grows over time through the power of compounding.

Lumpsum Formula

FV = P × (1 + r)^n

  • FV — Future Value (maturity amount)
  • P — Principal (your one-time investment)
  • r — Annual rate of return (as a decimal)
  • n — Number of years invested

Lumpsum vs SIP — When to Choose What?

  • Lumpsum: Ideal when you have a large amount ready (bonus, inheritance, maturity proceeds) and markets are at a reasonable level.
  • SIP: Better for monthly surplus income; averages out market volatility via rupee cost averaging.
  • Hybrid: Lumpsum for an immediate corpus + SIP for ongoing monthly surplus — often the best strategy.

Power of Compounding

  • At 12% returns, ₹1 lakh becomes ₹3.1 lakh in 10 years and ₹9.6 lakh in 20 years.
  • The longer you stay invested, the more dramatic the compounding effect.
  • Use the Rule of 72: divide 72 by the return rate to find the doubling period.

Things to Keep in Mind

  • Past mutual fund returns are not guaranteed for the future.
  • Equity investments carry market risk; consider your risk tolerance.
  • Factor in inflation — a 12% nominal return may be 6% in real terms.
  • Keep aside an emergency fund before making lumpsum investments.