What is a lumpsum Calculator?
A lumpsum investment is a single, one-time deposit into a mutual fund, as opposed to a SIP's recurring monthly instalments. Because the whole amount starts compounding from day one, a lumpsum generally needs a lower absolute return than an equivalent SIP to reach the same corpus — but it also carries more timing risk, since the entry price of that one transaction has an outsized effect on your outcome.
Enter your investment amount, an expected annual return and the holding period to see the projected value and year-wise growth.
How the future value is calculated
P is your invested amount, r is the expected annual return, and n is the number of years invested. This is standard annual compounding — the same maths behind the CAGR and Compound Interest calculators.
Frequently asked questions
Lumpsum or SIP — which is better?
Neither is universally better. Lumpsum tends to do well when markets are undervalued or trending up; SIPs average out entry price and reduce the risk of investing everything at a peak. Many investors use both — lumpsum for windfalls, SIP for regular savings.
Does this account for taxes on redemption?
No — the projected value shown is pre-tax. Equity mutual fund gains held over a year are taxed as long-term capital gains; check current LTCG rules separately before estimating your post-tax return.
What return rate should I assume?
This depends entirely on the fund category. It helps to run the calculator at a conservative, moderate and optimistic rate rather than relying on a single assumption.