Lumpsum Calculator

What is Lumpsum Investing?

Lumpsum investing means putting a large sum of money into an investment at once, rather than spreading out contributions over time. This is common when you receive a bonus, inheritance, maturity proceeds, or sell a property. The power of compounding works on the entire amount from day one, which can lead to significant wealth creation over long periods.

Lumpsum vs SIP — Which is Better?

Both have their merits. Lumpsum works best when markets are low (you buy more units at cheaper prices) and when you have a large amount ready to invest. SIP (Systematic Investment Plan) is better for salaried individuals who earn monthly and want to average out market volatility through rupee cost averaging. In a rising market, lumpsum often outperforms SIP; in volatile markets, SIP provides better risk management.

The Power of Compounding

Albert Einstein reportedly called compound interest the eighth wonder of the world. When you invest ₹5,00,000 at 12% annually, after 10 years it becomes ₹15,53,000 — more than 3× your investment. After 20 years, it grows to ₹48,23,000 — nearly 10×. The longer you stay invested, the more dramatic the growth. Use our Compound Interest Calculator for more detailed compounding scenarios.

When to Invest Lumpsum

Consider lumpsum investing when: you have surplus funds sitting idle in a savings account, markets have corrected significantly, you have a long investment horizon (5+ years), or you've received windfall money. Avoid putting all your money in lumpsum during market peaks — instead, consider parking some in a Fixed Deposit and deploying via a SIP over 6-12 months.

Calculate Your Returns

This calculator uses the simple compound interest formula: FV = P × (1 + r/100)^t. For checking annualised performance of past investments, try our CAGR Calculator. To plan for withdrawals from your accumulated corpus, use our SWP Calculator.

Frequently Asked Questions