Lumpsum Investment Calculator
A lumpsum is a single investment left to compound. A bonus, a maturing deposit, proceeds from a sale — money that arrives all at once and doesn't need to be touched.
The maths is the friendliest in all of personal finance: one amount, one rate, one time period. What surprises people is the shape of the curve. It barely moves for the first few years, then bends sharply upward. Nearly all of the growth arrives in the back half, which is why the most common lumpsum mistake isn't picking the wrong fund — it's withdrawing during the flat part.
How it works
- 01The compound interest formula does all the work: FV = P × (1 + r)ⁿ, with P your amount, r the annual return, and n the number of years.
- 02Every year's gain is added to the balance and earns its own return the following year. That reinvestment is the difference between compound and simple interest, and over long periods it is enormous.
- 03The chart plots your original amount as a flat line against the growing balance. The widening gap between them is compounding made visible.
Frequently asked
Lumpsum or SIP — which is better?+
Mathematically, lumpsum wins when markets rise, because your full amount is exposed from day one. Practically, SIP wins for most people, because it removes the question of whether today is a good day to invest. If you have a large sum and it makes you nervous, splitting it across 6–12 months is a reasonable middle path.
How long should I stay invested?+
For equity, five years is a sensible floor and ten-plus is where the odds turn strongly in your favour. Shorter than three years, a bad stretch has no time to recover — that money belongs in a deposit or a liquid fund, not in equity.
Why does the chart look flat at the start?+
Because it is. At 12%, the first year adds 12% of a small number. By year fifteen it adds 12% of a much bigger number. Same rate, wildly different absolute gain — that is exponential growth, and it is why patience is the actual skill.
Does inflation affect this result?+
Yes, and the calculator shows nominal rupees. If the figure is ₹50 lakh in 20 years, its buying power at 6% inflation is closer to ₹15 lakh today. Use the inflation calculator to convert any future number into money you can actually reason about.