About the Lumpsum Investment Calculator
A lumpsum investment is a one-time amount invested upfront, left to grow for a chosen period, rather than invested in instalments like a SIP. This calculator projects the maturity value and total gain from a lumpsum invested at an expected annual return.
How it works
- It uses the standard compound interest formula with annual compounding: FV = P × (1 + r)^t, where P is the amount invested, r is the expected annual return, and t is the number of years.
- The total gain is simply the maturity value minus the amount originally invested.
Assumptions and behaviour
- Assumes a constant annual rate of return compounded once a year — real market-linked investments (equity mutual funds, stocks) fluctuate year to year rather than growing smoothly.
- Equity investments have historically delivered long-term returns in the region of 12% annually in India, but this is an assumption, not a guarantee.
- Suited to comparing scenarios (e.g. "what if I invest ₹1 lakh for 10 years at 12%?") rather than predicting an exact real-world outcome.
Limitations
- Doesn't account for taxes on capital gains when the investment is eventually redeemed.
- Doesn't account for expense ratios, exit loads, or transaction charges.
- Doesn't model partial withdrawals or top-up investments — for regular monthly investing, use the SIP Calculator instead.
Privacy
The calculation runs entirely in your browser. Nothing is uploaded or stored.
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