About the Lumpsum Calculator
What is the Lumpsum Calculator?
A lumpsum investment puts a large amount to work in one go — for example a bonus, an inheritance or the proceeds of a sale. Because the entire amount starts compounding immediately, lumpsum investing can outperform a SIP when markets rise steadily, but it carries more timing risk.
Enter the amount, the expected annual return and the investment period. You can also add an optional monthly top-up. The calculator shows the maturity value, the total invested and the wealth gained.
How to use the Lumpsum Calculator
- Lumpsum Amount (₹) (sample: 2,50,000)
- Expected Return (% per year) (sample: 12)
- Investment Period (Years) (sample: 10)
- Optional Monthly Top-Up (₹) — an optional amount added every month; enter 0 to skip. (sample: 0)
- Press Calculate Lumpsum (results also refresh as you type). The result card shows the Projected Value, along with Total Invested and Wealth Gained.
Formula used
FV = P × (1 + r)ⁿ
- P = the lumpsum amount
- r = the expected annual return
- n = the number of years
Optional monthly top-ups are added like a SIP, earning r ÷ 12 a month, and their value is added to the lumpsum's future value.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Lumpsum Amount (₹) | 2,50,000 |
| Expected Return (% per year) | 12 |
| Investment Period (Years) | 10 |
| Optional Monthly Top-Up (₹) | 0 |
| Result | Value |
|---|---|
| Maturity Value | ₹7,76,462 |
| Total Invested | ₹2,50,000 |
| Wealth Gained | ₹5,26,462 |
Tips for using the Lumpsum Calculator
- If you are worried about market timing, stagger a lumpsum into equity funds over 6–12 months using an STP (systematic transfer plan).
- At 12% a year, money roughly doubles every 6 years (Rule of 72).
- Park the lumpsum in a liquid fund while you decide, rather than in a savings account.