Lumpsum Calculator
See what a one-time investment could grow into. Useful for planning where to park a windfall, projecting the future value of a single mutual-fund purchase, or stress-testing how different return assumptions affect your retirement corpus.
Future value
₹3,10,585
₹1L growing at 12% for 10 years
- Total invested
- ₹1,00,000
- Estimated gain
- ₹2,10,585
Invested vs estimated gain
Growth over time
Year-by-year breakdown
| Year | Opening | Growth | Closing |
|---|---|---|---|
| Year 1 | ₹1,00,000 | ₹12,000 | ₹1,12,000 |
| Year 2 | ₹1,12,000 | ₹13,440 | ₹1,25,440 |
| Year 3 | ₹1,25,440 | ₹15,053 | ₹1,40,493 |
| Year 4 | ₹1,40,493 | ₹16,859 | ₹1,57,352 |
| Year 5 | ₹1,57,352 | ₹18,882 | ₹1,76,234 |
| Year 6 | ₹1,76,234 | ₹21,148 | ₹1,97,382 |
| Year 7 | ₹1,97,382 | ₹23,686 | ₹2,21,068 |
| Year 8 | ₹2,21,068 | ₹26,528 | ₹2,47,596 |
| Year 9 | ₹2,47,596 | ₹29,712 | ₹2,77,308 |
| Year 10 | ₹2,77,308 | ₹33,277 | ₹3,10,585 |
How it works
Lumpsum future value uses the standard compound interest formula with annual compounding (the convention for mutual-fund return projections):
A = P × (1 + r) ^ t
P = principal (one-time investment)
r = expected annual return (decimal: 12% → 0.12)
t = investment horizon in yearsThe same formula doubles your money roughly every 72 / ryears (the "rule of 72"): at 12%, money doubles every 6 years; at 8%, every 9 years. Compounding is non-linear — most of your final value comes from the last few years. Don't cut your horizon short.
How to use
- Enter your one-time investment amount.
- Pick a realistic annual return. For long-horizon equity SIPs/lumpsums in India, 10-12% is reasonable; use 8% as a conservative stress test.
- Choose your investment horizon. Equity funds need at least 5-7 years to absorb market volatility.
- Look at the gain vs invested split — at 12% over 20 years, more than 80% of your final value is gain, not principal.
- Try the same numbers in the SIP / Mutual Fund Returns calculator to compare lumpsum vs SIP for the same total commitment.
Frequently asked questions
How is the future value of a lumpsum investment calculated?
Future value uses annual compounding: A = P × (1 + r)^t, where P is the investment amount, r is the expected annual return as a decimal (12% → 0.12), and t is the investment horizon in years. This is the standard convention used by Groww, ClearTax, and other Indian fund platforms when projecting mutual-fund returns.
What expected return should I use?
Long-run averages for Indian markets: equity mutual funds ~12% (CAGR over 15+ years for a diversified large-cap or flexi-cap fund), hybrid funds ~10%, debt funds ~7%, gold ~8-9%. These are not guarantees — actual returns vary year to year and can be negative in bad markets. Use 10-12% as a reasonable equity assumption and stress-test with 8% for conservative planning.
Is lumpsum better than SIP?
If you have the money up front, lumpsum mathematically wins because all of your principal is earning compound returns from day one. However, SIP wins behaviourally: it averages your purchase price across market cycles (rupee-cost averaging), removes the 'when to invest' anxiety, and forces a savings habit. For most people without strong market-timing conviction, SIP is the safer default. If you've inherited or earned a windfall, consider STP (Systematic Transfer Plan) — park the lumpsum in a liquid fund and transfer to equity over 6-12 months.
Are returns guaranteed?
No. Mutual fund returns are market-linked and can be negative in any given year. The 12% equity assumption is a long-run historical average, not a promise. Always invest with a horizon of at least 5-7 years for equity funds to ride out volatility.
How are mutual fund gains taxed?
Equity mutual funds (≥65% equity allocation): gains over 1 year are Long-Term Capital Gains, taxed at 12.5% above ₹1.25L per year (post-July 2024). Within 1 year are Short-Term, taxed at 20%. Debt mutual funds (post April 2023): all gains taxed at slab rate regardless of holding period. Hybrid funds depend on equity allocation. The future value shown is pre-tax.
Does this calculator account for inflation?
No, it shows nominal future value. To estimate real (inflation-adjusted) wealth, subtract India's long-run inflation (~5-6%) from your assumed return. For a 12% nominal return at 6% inflation, the real return is ~5.7% (using the precise formula (1.12 / 1.06) − 1).
What's the difference between CAGR and absolute return?
CAGR (Compound Annual Growth Rate) is the constant rate that would have produced the final value if compounded annually — it's what we use here. Absolute return is just (final − initial) / initial × 100 over the entire period, ignoring time. CAGR is the right metric for comparing investments across different durations.