Lumpsum Calculator
Calculate the future value of a one-time investment with compound returns. Free, privacy-first — inputs never leave your browser.
Details
Result
Maturity Value
₹27,36,783
Invested
₹5,00,000
Gains
₹22,36,783
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
Lump sum vs SIP
A lump sum investment is a one-time deployment of capital. It benefits most when markets are near a bottom — but very few people can time that. Over a full market cycle, SIP and lump sum produce similar CAGR, but SIP reduces the impact of poor entry timing.
Common questions about Lumpsum
What is a lumpsum investment?+
Lumpsum is a one-time investment of a large amount in a mutual fund, FD, or other instrument, as opposed to a SIP which invests monthly. Works best when you have an idle corpus (bonus, inheritance, maturity proceeds) and want immediate market exposure. Compounding starts on the full amount from day one, unlike SIPs where only early tranches compound longest.
Lumpsum vs SIP — which gives higher returns?+
Over full market cycles both deliver similar CAGR, but the path differs. A lumpsum at a market low handily beats SIP; at a market peak, SIP averaging wins. Academic studies of Nifty 50 over 15-year rolling periods show lumpsum outperforms SIP ~66% of the time because markets trend up. Best practice: if markets are at fair valuation (Nifty P/E under 22), invest lumpsum; at frothy levels, stagger over 6-12 months via STP.
How does compounding work on a lumpsum?+
Future value = Principal × (1 + r)^n. ₹10 lakh at 12% for 20 years = ₹96.5 lakh. For 25 years = ₹1.7 crore. The final 5 years alone add ~₹73 lakh — compounding is exponential, not linear. This is why starting early with even a small lumpsum beats starting late with a large one.
What return should I assume in the calculator?+
Equity mutual funds: 11%-13% long-term CAGR (Indian equity has delivered ~12.5% over 25 years). Hybrid funds: 9%-10%. Debt funds: 6%-7.5%. Fixed deposits: 6%-7.25%. Always use post-tax, post-inflation (real) return for goal planning: equity real return is ~6%-7% after 5% inflation and LTCG tax.
Is a lumpsum taxed differently from a SIP?+
No — tax rules are identical for lumpsum and SIP in the same scheme. Equity funds: LTCG 12.5% above ₹1.25 lakh/year if held over 12 months; STCG 20% if sold within 12 months. Debt funds (post April 2023): gains taxed at your slab rate regardless of holding period. ELSS lumpsum qualifies for 80C up to ₹1.5 lakh (old regime only).
Should I do lumpsum or STP (Systematic Transfer Plan)?+
STP parks your lumpsum in a liquid fund and transfers a fixed amount weekly/monthly to an equity fund over 6-12 months. It averages out entry price — useful when markets are at all-time highs or during volatility. Pure lumpsum wins if markets stay flat or rise. Rule of thumb: for amounts above ₹10 lakh entering equity at high valuations, STP over 6-9 months reduces regret risk.