Lumpsum Investment Calculator
A lumpsum calculator answers a simpler question than a SIP calculator: what does one investment made today become after compounding at a steady annual rate?
FV = P × (1+r)t, where P is the amount invested, r is the annual return rate, and t is the number of years.
How to use this calculator
Enter the amount you're investing as a single deposit, an assumed annual return rate, and the number of years you'll hold it. The calculator applies compound growth and shows the invested amount, estimated returns, and total value at the end of the period.
What this doesn't account for
This assumes one deposit and a perfectly constant annual return, with no withdrawals, top-ups, entry or exit loads, or tax along the way. Real investments rarely grow at a smooth, constant rate.
Frequently asked questions
What is a lumpsum investment?
A single deposit made at one point in time, left to grow at a compounding rate, as opposed to periodic monthly SIP contributions.
How is this different from a fixed deposit?
The mechanics, a single deposit compounding over time, are similar, but a bank fixed deposit's rate is contractually guaranteed, while a mutual fund or equity lumpsum's return is market-linked and not guaranteed.
Does this account for entry or exit load?
No. Some funds charge an exit load if redeemed within a specified period; this calculator only computes gross growth at your assumed rate.
Is a lumpsum better than a SIP?
Neither is universally better. A lumpsum invested right before a market fall underperforms a SIP that averages in over time, while a lumpsum invested right before a rally outperforms it. Timing risk is the key difference.
What return rate should I use?
Use a rate you can source for the specific instrument you're evaluating. Don't use a generic market-average assumption as a promise of future performance.
Does this calculator show inflation-adjusted returns?
No, all figures are nominal. To estimate real returns, subtract your assumed inflation rate from the return rate before entering it.
Can I model a lumpsum plus later top-ups?
Not with this calculator; it computes a single deposit only. Combine its result with the SIP calculator's output for additional planned contributions.
Does this include taxes?
No. Capital gains tax applies on redemption and depends on holding period and instrument type; see the capital gains tax calculator for that separately.
What's the difference between CAGR and the return rate entered here?
They're the same concept for a single deposit compounding at a constant rate. The CAGR calculator instead works backward from a known start and end value to find that rate.
Why does compounding matter more over longer periods?
Returns generated in early years themselves earn returns in later years, so the growth curve steepens with time even at a constant rate.
This is a generic financial calculation, not investment, loan or tax advice specific to you. BrokerLens is not a SEBI-registered investment adviser.