A lump sum investment calculator computes the future value of a one-time investment based on the principal, expected annual return rate, and investment duration.
About this calculator
A lump sum investment calculator computes the future value of a one-time investment based on the principal, expected annual return rate, and investment duration. Unlike SIP, lump sum investing puts all your money to work immediately, which maximizes compounding if invested at the right time.
It is useful for investing a windfall, bonus, or any one-time amount and seeing its long-term growth potential.
Common uses
- Calculate the future value of a bonus or windfall investment
- Compare lump sum vs SIP over 10–20 years
- Estimate how much ₹10 lakh invested today grows in 15 years
- Plan wealth creation from a one-time investment
Frequently asked questions
What is the formula for lump sum investment growth?
Future Value = Principal × (1 + annual rate)^years. For example, ₹10 lakh invested at 12% annual return for 20 years grows to ₹10 lakh × (1.12)^20 ≈ ₹96.46 lakh, nearly 10 times the original investment.
Is lump sum better than SIP?
Lump sum investing works better when markets are undervalued or trending upward because all your money compounds from day one. SIP works better in volatile or declining markets through rupee-cost averaging. Most investors use a combination of both strategies.