Lumpsum Calculator
Calculate lumpsum investment returns with compound interest and inflation adjustment
Calculate Your Lumpsum Investment
One-time investment amount
Expected annual rate of return
Duration of investment (10.0 years)
How often interest is compounded: Monthly
Enable to see inflation-adjusted returns
Lumpsum Investment Results
| Initial Investment | ₹1,00,000 |
| Expected Annual Return | 12% |
| Investment Period | 10.0 years |
| Compounding Frequency | Monthly |
| Final Balance | ₹3,30,039 |
Investment Summary
Absolute Return
230.0%
Annualized Return
12.68%
Compounding
Monthly
Year-wise Investment Growth
| Year | Balance | Yearly Gain | Total Gain |
|---|---|---|---|
| Year 1 | ₹1,12,683 | ₹12,683 | ₹12,683 |
| Year 2 | ₹1,26,973 | ₹14,291 | ₹26,973 |
| Year 3 | ₹1,43,077 | ₹16,103 | ₹43,077 |
| Year 4 | ₹1,61,223 | ₹18,146 | ₹61,223 |
| Year 5 | ₹1,81,670 | ₹20,447 | ₹81,670 |
| Year 6 | ₹2,04,710 | ₹23,040 | ₹1,04,710 |
| Year 7 | ₹2,30,672 | ₹25,962 | ₹1,30,672 |
| Year 8 | ₹2,59,927 | ₹29,255 | ₹1,59,927 |
| Year 9 | ₹2,92,893 | ₹32,965 | ₹1,92,893 |
| Year 10 | ₹3,30,039 | ₹37,146 | ₹2,30,039 |
Showing year-wise growth with monthly compounding
About Lumpsum Investment
One-time bulk investment in mutual funds
Benefit from compound interest over time
Ideal for long-term wealth creation
Good for achieving specific financial goals
Quick Lumpsum Examples
₹1L @ 12% for 10 years
Maturity: ₹3,10,585
₹5L @ 15% for 15 years
Maturity: ₹40,75,517
₹2L @ 10% for 20 years
Maturity: ₹13,45,500
₹50K @ 14% for 5 years
Maturity: ₹96,463
Approximate maturity values with monthly compounding
Lumpsum Investment Tips
Invest when markets are low for better returns
Choose long-term horizons (5+ years)
Diversify across different fund categories
Consider tax implications and LTCG
Review and rebalance periodically
Understanding Lumpsum Investment
What is Lumpsum Investment?
Lumpsum investment involves depositing a single, bulk amount of money into a mutual fund or investment scheme at once. Unlike SIP (Systematic Investment Plan), where you invest regularly, lumpsum is a one-time investment that grows through compound interest over time.
Lumpsum vs SIP
- •Lumpsum: One-time bulk investment
- •SIP: Regular periodic investments
- •Market Timing: Lumpsum requires better timing
- •Rupee Cost Averaging: SIP provides this benefit
Lumpsum Calculation Formula
FV = PV × (1 + r/n)^(n×t)
- FV: Future Value (Maturity Amount)
- PV: Present Value (Initial Investment)
- r: Annual Interest Rate
- n: Compounding Frequency
- t: Time Period in Years
When to Choose Lumpsum
Market Correction: When markets are significantly down
Windfall Gains: Bonus, inheritance, or asset sale
Long-term Goals: Planning for retirement or children's education
Lower Volatility: In stable market conditions
Power of Compounding
The frequency of compounding significantly impacts your returns. Monthly compounding generally provides better results than annual compounding. For example, ₹1 lakh at 12% annual return for 10 years gives ₹3,10,585 with monthly compounding vs ₹3,10,585 with annual compounding. The more frequent the compounding, the higher your returns.