What is a Lumpsum Calculator?
A Lumpsum Investment Calculator helps you determine the future value of a single, one-time investment made in mutual funds, fixed deposits, or equities. If you have a large corpus from a bonus, inheritance, or sale of an asset, this calculator helps you see how much it will grow over your desired tenure.
How Lumpsum Compounding Works (Formula)
The core of lumpsum investing is the compound interest formula:
A = P(1 + r/n)^(nt)
For mutual funds, we calculate based on the expected annual return (CAGR). While Lumpsum investments carry a slight market timing risk compared to SIPs, they historically offer massive absolute returns if left untouched for a decade or more.
Lumpsum vs SIP: Which is Better?
While SIPs are great for monthly salaried individuals, Lumpsum is superior when you have idle cash. When markets correct heavily (market crashes), injecting a lumpsum amount often results in substantially higher returns than a phased SIP approach. Our calculator instantly graphs your wealth trajectory so you can make informed decisions.