Lumpsum Investment Calculator
One-time investment growth projection.
Inputs
This calculator is for general information only and isn't financial advice. Rates, tax rules, and your actual eligibility depend on your specific situation — check with your bank or a qualified advisor before acting on it.
Formula
A = P × (1 + r/n)^(n×t)
P is the one-time investment, r is the expected annual return, n is 12 (monthly compounding), and t is years held. Unlike a SIP, the entire amount is invested on day one and compounds for the full period.
Worked example
A single ₹5,00,000 investment at an assumed 12% annual return (compounded monthly) grows to about ₹16.5 lakh in 10 years — more than triple the original stake. The same ₹5,000/month via SIP over 10 years at 12% would build to roughly ₹11.6 lakh, illustrating why a large upfront corpus has a head start.
Where this can give the wrong answer
- The expected return is an assumption, not a forecast — equity lumpsum investments can show deep drawdowns before recovering, and the maturity figure assumes a smooth constant return.
- Entry and exit loads, expense ratios, and capital gains tax on redemption are not deducted from the projected value.
- Lumpsum timing matters in real markets: investing at a peak versus a trough can change realised returns dramatically even if the long-term CAGR matches your assumption.
FAQ
- Neither — it only projects a one-time investment. A lumpsum invested at the start of a bull run often beats an equivalent SIP in total value, but SIPs reduce timing risk by averaging entry prices. Run both calculators with the same return assumption to compare.