Lumpsum Calculator

Lumpsum formula

FV = P × (1 + r ÷ n)^(n × t)

P = amount invested, r = annual return, n = compounding periods per year, t = years. Mutual-fund returns are usually quoted as annual CAGR, so keep compounding yearly for funds.

Example

₹1,00,000 at 12% for 10 years = 1,00,000 × 1.12¹⁰ = ₹3,10,585. At 15 years it becomes ₹5,47,357 — the "rule of 72" says money doubles every 72 ÷ 12 = 6 years at 12%.

Lumpsum vs SIP

A lumpsum gives your whole amount the full time to compound, so it usually wins when markets rise steadily. A SIP spreads purchases, which reduces the risk of investing everything at a market peak. Many investors put windfalls in as a lumpsum and salary savings as a SIP.

Frequently asked questions

How much will ₹1 lakh become in 10 years?

At 12% compounded yearly, ₹3.1 lakh; at 8% (a typical FD), ₹2.16 lakh; at 15%, ₹4.05 lakh.

What is the rule of 72?

Divide 72 by the annual return to get the number of years for money to double. At 12% it doubles in about 6 years; at 8% in 9 years.

Should I invest a lumpsum or a SIP?

A lumpsum earns longer, so it typically ends higher if returns are steady. A SIP lowers timing risk. Use the lumpsum calculator for one-time money and the SIP calculator for monthly savings.