How to use the lumpsum calculator
- Enter the amount you will invest once – in a mutual fund, shares or any other investment.
- Enter the expected yearly return and the number of years you will stay invested.
Lumpsum formula
\text{Future value} = P \times (1 + r)^{n}P– amount invested,r– yearly return as a decimal,n– years
₹1,00,000 × 1.1210 = ₹3,10,585 – about 3.1 times the money.
Lumpsum or SIP?
A lump sum is invested all at once, so it earns returns for the whole period – better when you already have the money and the market is not expensive. A SIP spreads the investment out and averages the price you pay. Compare with the SIP calculator, or measure past growth with the CAGR calculator.
Frequently asked questions
What will ₹1 lakh become in 10 years?
At 12% a year, about ₹3,10,585; at 10%, about ₹2,59,374; at 8%, about ₹2,15,892.
How long does it take to double my money?
Roughly 72 divided by the yearly return (the rule of 72): about 6 years at 12%, 7.2 years at 10% and 9 years at 8%.
What return should I assume?
For Indian equity mutual funds, 10–12% a year is a common long-term assumption; for debt funds 6–7%. Returns are not guaranteed.
Is a lump sum better than a SIP?
Over the same period, a lump sum earns more if markets rise steadily, because all the money is invested from day one. A SIP lowers the risk of investing everything at a peak.