How the lumpsum calculator works
A lumpsum investment compounds the full amount from day one, using the standard compound interest formula:
FV = P × (1 + r)t
Where P is your one-time investment, r is the expected annual return (as a decimal), and t is the number of years invested.
Step-by-step guide
- Enter the amount you plan to invest in one go.
- Set the annual return you expect the fund to deliver over the long term.
- Choose your investment horizon in years.
- Read the projected future value and estimated gains instantly.
Example calculation
A one-time investment of ₹1,00,000 at an assumed 12% annual return for 10 years grows to roughly ₹3.1 lakh — illustrating how compounding accelerates substantially in the later years even without adding further contributions.
Frequently asked questions
Neither is universally better — a lumpsum gives your full amount maximum time to compound, which tends to win in steadily rising markets, while a SIP spreads risk across purchase dates, which tends to help in volatile markets. See our SIP Calculator to compare.
No — this shows gross projected growth. Capital gains tax on mutual fund redemptions depends on holding period and fund type, and isn't included here.
Base it on the historical average for your fund's category rather than a single good (or bad) year — equity funds are commonly modeled at 10–12% long-term, but returns are never guaranteed.