Lumpsum Calculator
Enter a one-time principal, expected annual return, and years invested. See maturity, profit, and how the balance could grow each year with compounding โ not a promise of future performance.
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Maturity value
Year-by-year balance
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Lumpsum versus SIP โ how to think about it
A lumpsum deploys your entire principal immediately, so every rupee begins compounding from day one at the assumed rate. A SIP spreads entries over time, which can reduce timing risk (you buy more units when markets are lower) but delays full deployment. Neither approach is universally โbetterโ โ it depends on horizon, market valuations, cash-flow discipline, and fees.
Quick thought experiment: If you had โน1,20,000 today, one option is to invest it all as a lumpsum; another is to run a โน10,000/month SIP for 12 months. The lumpsum participates in a full year of growth on the whole amount (with volatility), while the SIP only puts โน10,000 to work in month one, โน20,000 by month two, and so on. In strong rising markets, lumpsums often win on paper; in falling markets, SIP can look smarter because later instalments buy cheaper. Real life includes crashes and recoveries โ use scenarios, not one forecast.
Risk: A large lumpsum into volatile assets just before a downturn can sting emotionally and financially. Some investors split deployment (phased investing) or mix debt and equity. This calculator uses a constant annual return for illustration; real paths zigzag. Taxes (STT, capital gains), expense ratios, and exit loads are not modeled โ net returns may be lower.
Compare with our SIP calculator using the same annual return assumption to see how timing of cash flows changes ending wealth. For debt-like certainty, see FD or PPF tools โ different risk profiles entirely.
Formula: A = P ร (1 + r)n with annual compounding, where P is principal, r is the decimal annual rate, and n is years. Continuous or monthly compounding would differ slightly; we keep annual for clarity.
FAQ
Is return fixed?
No โ the percentage is your assumption; markets fluctuate.
Does this include tax?
No โ it shows gross growth before capital gains tax rules.