About the Lump sum calculator
A lump sum is a single investment made once, rather than in instalments. The lump sum calculator shows how that amount could grow if it compounded at a steady annual rate.
How the Lump sum calculator works
A = P × (1 + r)^t
- A
- Estimated value
- P
- Amount invested
- r
- Annual return ÷ 100
- t
- Years
Growth is compounded once a year, so each year’s return is earned on the previous year’s total as well as the original amount.
Worked example
- Starting amount
- ₹1,00,000
- Annual rate
- 12%
- Time period
- 10 years
Example inputs
- Estimated value
- ₹3,10,584.82
- Total contributed
- ₹1,00,000
- Growth / interest
- ₹2,10,584.82
Calculated result
Why use a Lump sum calculator?
- Estimate what a bonus or a maturity amount could grow to.
- Compare investing at once with investing the same total through a SIP.
- See how much the time period matters at the same return.
Lump sum calculator FAQs
Is a lump sum better than a SIP?
Neither is better in general. A lump sum is fully invested from day one; a SIP spreads purchases over time. Which suits you depends on when you have the money and how you feel about market timing. The calculator does not recommend either.
Why does the calculator compound yearly?
Annual compounding is the usual way lump sum returns are quoted. A fund’s value actually changes daily, so treat the result as an approximation.
Does the result include taxes and charges?
No. Fund expenses, exit loads and taxes on gains are not deducted.
Can I use it for fixed deposits?
Bank FDs usually compound quarterly; use the fixed deposit calculator for that.