Lumpsum Calculator
Estimate how a one-time investment grows over time at your expected rate of return.
- Invested Amount₹1.00 Lakh32.2%
- Estimated Returns₹2.11 Lakh67.8%
What is a Lumpsum Investment?
A lumpsum investment means investing a large sum in one transaction, letting the entire amount compound for the full investment duration — rather than spreading investments over time as with a SIP.
How It's Calculated
Lumpsum growth follows compound growth: Maturity Value = P × (1 + r)t, where P is the amount invested, r is the expected annual return, and t is the number of years invested.
Example Calculation
Investing ₹1,00,000 for 10 years at an expected 12% annual return grows to approximately ₹3,10,585 — nearly 3.1 times the original investment.
Frequently Asked Questions
What is a lumpsum investment?
A lumpsum investment means investing a large amount of money in a single transaction, as opposed to spreading it over time through a SIP. It is typically used when a large amount is available upfront, such as a bonus or maturity payout.
How is lumpsum growth calculated?
Lumpsum growth is calculated using compound growth: the invested amount grows at the expected annual rate of return, compounding once per year over the chosen investment duration.
Lumpsum vs SIP — which grows faster?
A lumpsum invested today has more time to compound than money invested gradually, so in a rising market it typically grows faster. However, SIPs reduce the risk of investing a large amount right before a market downturn.
Is the return from a lumpsum investment guaranteed?
No — the expected annual return is an assumption based on historical performance or market expectations. Actual investment returns vary and are never guaranteed.