Lumpsum Calculator
A lumpsum investment is a single payment made at the start, such as putting a bonus, an inheritance or maturing deposit into a mutual fund. Once invested, it compounds on its own: each year's return is earned on the original amount plus all the return earned before.
Lumpsum Calculator
Example values are shown to start with. Change them to your own numbers. Everything is calculated in your browser.
This calculator estimates the value of a lumpsum after a number of years at a steady annual return. It shows the maturity value and the gain. Use it to compare a lump sum with a monthly SIP, or to see how waiting longer changes the result.
Worked example
With the starting values below, the calculator gives the results in the second table.
| Amount invested | ₹1,00,000 |
|---|---|
| Expected return | 12% |
| Years | 10 |
| Maturity value | ₹3,10,584.82 |
|---|---|
| Wealth gained | ₹2,10,584.82 |
How to use this calculator
- Enter the amount you will invest once.
- Enter the yearly return you expect. The default is an example, so use your own estimate.
- Enter the number of years.
- Read the maturity value and the wealth gained.
Formula
- P is the amount invested.
- r is the annual return as a decimal: 12% = 0.12.
- t is the number of years.
Assumptions
- The return is the same every year and is compounded once a year.
- No withdrawals, taxes, charges or inflation adjustment.
Limitations
- Actual returns change every year and can be negative.
- The result shows what a fixed rate would give, not what any investment will give.
Frequently asked questions
What is the lumpsum formula?
Maturity value = P × (1 + r)ᵗ, where P is the amount invested, r is the annual return as a decimal and t is the number of years.
Lumpsum or SIP: which is better?
A lumpsum can benefit if markets rise soon after you invest, but it carries more timing risk. A SIP spreads that risk across months. The right choice depends on your cash flow and comfort with risk.
Why does the gain grow faster in later years?
Compounding: the return from earlier years also earns a return, so the yearly gain gets larger as the balance grows.
Is the result guaranteed?
No. It is an illustration based on the return you enter.
Related calculators
- SIP CalculatorEstimate the maturity value of a monthly SIP investment.
- CAGR CalculatorCompound annual growth rate between a starting and ending value.
- Compound Interest CalculatorGrowth of savings with regular monthly contributions.
Sources and method
This is the standard compound growth formula. See how our calculators work.
Results are estimates for planning only and are not financial, tax or legal advice. Rates, rules and your own circumstances can change the outcome. Read our disclaimer.