Calculator
Lumpsum Calculator
A lumpsum investment puts a single amount into a mutual fund and lets it compound over time, instead of spreading it across monthly instalments like a SIP. It suits windfalls — a bonus, maturity proceeds, or inherited money — when you have cash ready and a long horizon. This calculator estimates what a one-time investment grows to at a chosen return and the wealth gained on top. Returns are market-linked and not guaranteed, so use a conservative rate and treat the figure as a planning estimate, not a promise.
The one-time amount you invest today.
Long-term equity funds have historically returned ~10–13%. Not guaranteed.
How long you stay invested.
Growth over time
- Principal
- Gains
Returns are market-linked and not guaranteed; this assumes a constant annual return compounded yearly. Equity mutual fund gains held over a year are taxed as long-term capital gains at 12.5% above the annual exemption. This figure is pre-tax.
What your result means
- A lumpsum puts all your money in at one price, so it carries timing risk — great if markets rise from here, painful if they fall just after.
- For large sums, staggering the entry through an STP (park in a liquid fund, move a fixed amount to equity weekly/monthly) smooths that risk.
- Long-term equity gains above ₹1.25 lakh a year are taxed at 12.5% — factor that into the net maturity.
How to use this calculator
- Enter the one-time amount you have available to invest.
- Set a realistic expected return — 10–12% for diversified equity funds over the long term.
- Choose how many years you will stay invested.
- Read the maturity value, then compare it against your investment to see the gains.
- Try a longer period to feel how dramatically compounding rewards patience.
The formula
Maturity = A × (1 + r)^t, where A = amount invested, r = annual return (as a decimal), and t = years. Wealth gained = Maturity − A.
Worked example
Investing ₹1,00,000 once at an assumed 12% per year for 10 years: Maturity = 1,00,000 × (1.12)^10 ≈ ₹3,10,585. So about ₹2,10,585 is wealth gained — your money roughly triples without adding a rupee. Stretching the same investment to 20 years compounds it to about ₹9,64,000, which is why a long horizon matters more than the exact rate.
When to use it
- Deciding where to invest a bonus, maturity proceeds, or inherited money.
- Comparing a one-time lumpsum against staggering the same amount through a SIP.
- Estimating how much a long-held equity investment could be worth at a goal date.
- Setting realistic expectations before deploying a windfall into the market.