Lumpsum Calculator
Calculate the future value of your one-time lumpsum investment and see year-by-year wealth creation.
Year-by-Year Growth
| Year | Portfolio Value | Wealth Gained |
|---|---|---|
| 1 | ₹5,60,000 | ₹60,000 |
| 2 | ₹6,27,200 | ₹1,27,200 |
| 3 | ₹7,02,464 | ₹2,02,464 |
| 4 | ₹7,86,760 | ₹2,86,760 |
| 5 | ₹8,81,171 | ₹3,81,171 |
| 6 | ₹9,86,911 | ₹4,86,911 |
| 7 | ₹11,05,341 | ₹6,05,341 |
| 8 | ₹12,37,982 | ₹7,37,982 |
| 9 | ₹13,86,539 | ₹8,86,539 |
| 10 | ₹15,52,924 | ₹10,52,924 |
Understanding Lumpsum Investment
A lumpsum investment is a one-time investment of a large amount in a financial instrument such as mutual funds, stocks, or fixed deposits. The entire amount is invested at once, unlike SIP where you invest periodically.
How Lumpsum Returns Are Calculated
The formula used is: Final Value = P x (1 + r)^n, where P is the principal amount, r is the annual return rate (as a decimal), and n is the number of years. This is the compound interest formula.
Lumpsum vs SIP
Lumpsum investing works best in a rising market as your entire capital benefits from the uptrend. SIP, on the other hand, benefits from rupee cost averaging during volatile markets. Ideally, a combination of both strategies provides optimal returns.
Power of Compounding
The longer you stay invested, the more powerful compounding becomes. A ₹5 lakh investment at 12% annual returns grows to ₹15.5 lakh in 10 years, ₹48.2 lakh in 20 years, and ₹1.5 crore in 30 years.