Lump Sum Calculator
Estimated Returns
100,000
Invested
210,584.82
Returns
310,584.82
Total Value
What is a Lump Sum Calculator?
A Lump Sum Calculator helps you estimate the future value of a one-time investment made today. Unlike SIP which involves regular monthly contributions, a lump sum investment is a single, one-time investment of a larger amount. The calculator uses compound annual growth to project how your investment grows over time.
This calculator is ideal for planning investments of windfall money such as a bonus, inheritance, or sale proceeds from an asset.
Lump Sum vs SIP — Which is Better?
Both approaches have their advantages depending on your situation:
- Lump Sum works best when you have a large idle amount and markets are at attractive valuations.
- SIP works best for regular salaried investors as it averages the cost of purchase over time.
- For the same investment period and rate, lump sum typically grows more — but carries higher market timing risk.
Frequently Asked Questions
What is a good return rate to use for a lump sum calculator?
For equity mutual funds in India, a 10–12% annual return over long periods is historically reasonable. For debt funds or FDs, use 6–8%. Always use a conservative estimate for critical financial goals.
Is lump sum investment risky?
Lump sum investments in equity markets carry market timing risk. If you invest just before a market downturn, your corpus may take time to recover. SIP reduces this risk through averaging. However, a long investment horizon of 7+ years significantly reduces risk.
What is the Rule of 72?
The Rule of 72 is a quick way to estimate how long it takes to double an investment. Divide 72 by the annual return rate. For example, at 12% annual return, your investment doubles in approximately 72/12 = 6 years.