Lumpsum Calculator

Calculate the future value of a one-time lump sum investment using compound interest.

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Enter your investment details above to calculate returns

How lumpsum returns are calculated

Lumpsum investments grow through compound interest — the formula accounts for how often interest is compounded each year.

Compound Interest Formula
FV = P × (1 + r/n)^(n×t)
P = principal, r = annual rate (decimal), n = compounding frequency per year, t = years. Example: ₹1L at 12% quarterly for 10 years = ₹3.26L.
CAGR (Compound Annual Growth Rate)
CAGR = (FV/P)^(1/t) − 1
CAGR tells you the effective annual return regardless of compounding frequency. It is useful to compare mutual funds and fixed deposits on equal terms.

Lumpsum vs SIP — which is better?

When lumpsum wins

If you invest during a market correction or when valuations are low, a lumpsum will beat SIP over the same period because all capital is deployed at once at a lower cost.

When SIP wins

In volatile or rising markets, SIP's rupee cost averaging means you don't risk putting all capital in at a peak. SIP is better for salaried investors with regular income.

Combine both

Many investors put a lumpsum in liquid or debt funds and set up a Systematic Transfer Plan (STP) into equity funds — getting the best of both strategies.

Frequently asked questions

What compounding frequency should I choose for mutual funds?

Mutual funds do not compound at fixed intervals — they grow daily based on NAV changes. For estimation purposes, use annual or quarterly compounding. The actual return depends on the fund's performance.

Is there a lock-in for lumpsum mutual fund investments?

For most open-ended equity mutual funds, there is no lock-in period. ELSS funds (tax-saving) have a 3-year lock-in. If you redeem equity fund units within 1 year, you pay 20% STCG tax on gains.

How does inflation affect lumpsum returns?

If your investment returns 12% annually but inflation is 6%, your real return is approximately 6%. Always think in terms of real (inflation-adjusted) returns when planning long-term goals like retirement.

What is the difference between CAGR and absolute return?

Absolute return = (FV - P) / P × 100. It doesn't account for time. CAGR normalizes return per year, making it comparable across different investment durations. Always use CAGR for investments over 1 year.

Can I add more money to a lumpsum investment later?

Yes. In mutual funds, additional lumpsum purchases are called additional purchases or top-ups. Each purchase is tracked separately for tax purposes (FIFO method is used for redemption). You can also start a SIP alongside an existing lumpsum.