Lumpsum
Lumpsum Calculator
Project a one-time investment at an assumed annual return, with yearly compounding and a growth chart.
How the calculator works
A lumpsum investment puts the whole amount to work immediately. The calculator grows that principal at a constant annual rate. It is a planning tool for “if this amount compounds at r% for t years, what might it become?”
Lumpsum formula
A = P × (1 + r)^t
P is the amount invested today, r is the expected annual return in decimal form, and t is the number of years. Compounding is once a year.
Example
₹1,00,000 left for 5 years at 10% a year becomes ₹1,61,051. Invested amount stays ₹1,00,000; estimated returns are ₹61,051. Change the rate to see how sensitive the ending value is.
Important considerations
Actual market returns are uneven. A constant rate hides drawdowns. Taxes on gains and product charges reduce what you keep. If the money will be deployed over several months, the SIP calculator is a closer model.
Frequently asked questions
Is a lumpsum always better than a SIP for the same amount?
Only if the money is invested from day one and the assumed return is earned throughout. In live markets, investing everything at a peak can lag a SIP that bought through dips. The calculator cannot settle that debate; it only compounds the rate you enter.
How is compounding applied here?
Once a year: A = P × (1 + r)^t. If you want monthly compounding, use the compound interest calculator and set frequency to monthly.
Should I subtract inflation?
This page shows a nominal future value. To see purchasing power, run the same horizon through the inflation calculator.
Related calculators
- SIP CalculatorEstimate the future value of monthly systematic investments, with an optional annual step-up.
- CAGR CalculatorMeasure the compounded annual growth rate between a starting and ending value.
- Mutual Fund CalculatorMeasure absolute gain and CAGR from the amount invested and the current fund value.
- Compound Interest CalculatorCalculate compound interest with yearly, quarterly, monthly or daily compounding.
Browse the full directory on the calculators page.
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SmartCalculators provides educational calculators and estimates. Results are for informational purposes only and should not be considered financial, tax, investment, legal or professional advice.