Financial calculatorsLumpsum Calculator
Lumpsum Calculator
See what a one-time mutual fund investment can grow into.
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- Invested amount
- ₹5 L
- Est. returns
- ₹11 L
- Total value
- ₹16 L
Illustration at the rate you set, not a forecast. Mutual fund investments are subject to market risks; read all scheme related documents carefully.
Plan this with us →How this calculator works
Enter the amount, the holding period and an assumed yearly return. The calculator compounds the amount once a year and splits the final value into what you invested and what it earned. Use it alongside the SIP calculator when deciding whether to invest a bonus at once or spread it over months.
What is a lumpsum calculator?
A lumpsum calculator estimates what a one-time mutual fund investment could grow into over a chosen period at an assumed yearly return. Enter the amount, the years and the return; it compounds the amount once a year and splits the final value into what you invested and what it earned.
How is it calculated?
FV = P × (1 + r)^n
- P is the amount invested once
- r is the assumed yearly return
- n is the number of years held
Questions people ask
If the money is already in hand, a lumpsum gives it the most time to compound; if it arrives monthly, a SIP is the natural fit. Investors who hold a lumpsum but worry about timing often park it in a liquid fund and move it into equity through a systematic transfer plan over six to twelve months.
At an assumed 12% a year, ₹10 lakh becomes about ₹31 lakh in 10 years, ₹55 lakh in 15 and ₹96 lakh in 20. At 8% the ten-year figure is about ₹21.6 lakh. These illustrate compounding at a fixed rate; no scheme returns a fixed rate.
The expense ratio is already reflected in a scheme's NAV, so a return assumption drawn from NAV history includes it. An exit load on early redemption and the tax on gains are paid separately, so the amount in hand will be a little lower than the figure shown.
Gains are taxed on redemption. In an equity fund, units held over 12 months pay 12.5% on long-term gains above ₹1.25 lakh in a financial year; units held 12 months or less pay 20%. Debt fund gains are taxed at your slab. Confirm with a chartered accountant.
Most schemes accept a first investment from ₹5,000, some from ₹1,000 or ₹500, and additional purchases from ₹1,000 or less. The scheme information document states the exact figure.
The risk of the fund category you choose. An equity fund can fall sharply in its first year and is held for the long term; a liquid fund barely moves. Match the category to when you need the money and read the riskometer. Mutual fund investments are subject to market risks.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Figures are illustrations at an assumed rate, not a forecast. Talk to us to match a plan to your goals.