💵 Lumpsum Calculator
FV = P × (1 + r)^n — see how a one-time investment grows over time.
Frequently Asked Questions
How do I use the Lumpsum Calculator?
Enter your Investment Amount, the Expected Annual Return and the Investment Period in years, then click Calculate to see the estimated future value, the wealth gained, the CAGR, and a year-by-year growth chart and table.
What is the formula for lumpsum investment growth?
FV = P × (1 + r)n, where FV is the future value, P is the one-time principal investment, r is the expected annual rate of return (as a decimal), and n is the investment period in years. Wealth Gained = FV − P.
What is the difference between a lumpsum investment and SIP?
A lumpsum investment is a single, one-time investment that grows for the entire period. A SIP (Systematic Investment Plan) involves smaller, regular contributions over time. Lumpsum investments benefit fully from compounding over the whole duration, while SIPs spread out market entry points. Use our SIP Calculator to compare.
What does CAGR mean here?
CAGR (Compound Annual Growth Rate) here is the same as the expected annual return rate you entered, since a lumpsum grows at a constant compounded rate every year. It represents the smoothed annual growth rate of your investment.
Is the expected return rate guaranteed?
No. The "Expected Annual Return" is an assumption you provide for illustration purposes. Actual market or mutual fund returns vary year to year and are not guaranteed — this calculator is for planning only, not financial advice.
Why does wealth gained grow faster in later years?
Because compounding applies to the entire accumulated value each year, not just the original principal. As the total value grows, the same percentage return produces a larger absolute gain, so the Year-by-Year Growth table shows accelerating gains over time.
How is a lumpsum equity investment taxed at exit?
For equity mutual funds, gains on units held over 12 months are long-term capital gains, taxed at 12.5% above ₹1.25 lakh per financial year. Gains on units held 12 months or less are short-term capital gains, taxed at 20%. Since a lumpsum has a single purchase date, the entire investment crosses into long-term status together, unlike a SIP where each instalment has its own holding period.
What if the expected return is negative — does this calculator handle losses?
Yes. Entering a negative expected annual return will compound the loss each year, producing a future value lower than the principal and a negative "Wealth Gained" figure. This can be useful for stress-testing how a market downturn would affect your investment over the chosen period.