Project the future value of a one-time investment. See how a single amount compounds into a larger corpus over time.
A Lump Sum calculator (or future value calculator) projects how a single, one-time investment will grow over time at a given expected annual return. This is especially useful for investors who receive a bonus, inheritance, or maturity proceeds and want to deploy the entire amount into a mutual fund, stock, or other appreciating asset at once — as opposed to a Systematic Investment Plan (SIP) where you invest monthly.
It uses the compound interest / future value formula and shows both the absolute return and the CAGR (Compound Annual Growth Rate), giving you a clear picture of how compounding multiplies a single principal amount over the long term.
Future Value = P × (1 + r/100)t
Where: P = lump sum amount, r = expected annual return (%), t = number of years. As the tenure and rate rise, the power of compounding becomes dramatic — a key reason lump-sum investing early can build wealth faster.
Note: Returns on equity mutual funds and stocks are not guaranteed and markets are volatile. Use a conservative expected return and always diversify. Consider comparing a lump sum vs a SIP using our SIP calculator to see which suits your cash-flow situation best.
For a large amount available all at once, a lump sum benefits from maximum time in the market and compounding. However, if the market is near an all-time high, deploying gradually (or using a staggered/laddered approach) reduces timing risk. SIPs smooth out volatility through rupee-cost averaging. Many advisors suggest a core lump sum investment plus regular SIPs for ongoing income. Use both calculators to compare scenarios before deciding.
Historically, Indian blue-chip equity and large-cap mutual funds have delivered around 10-14% CAGR over the long term (15+ years), while mid/small caps can be higher but more volatile. Conservative planning often assumes 10-12% for equity and 6-8% for debt. Never assume guaranteed returns for equity — past performance is not a guarantee of future results.
Yes. For equity mutual funds and listed stocks held over a year, gains above ₹1.25 lakh per year are taxed as LTCG at 12.5% (with no indexation). Short-term gains (under a year) are taxed at 20%. For debt funds, gains are taxed as per your income slab. This calculator focuses on growth projection; consult a CA on the exact tax treatment for your asset class and holding period.