Lumpsum Calculator

How Does Lumpsum Calculator Work?

Where:

• P = Your lumpsum investment amount
• r = Expected rate of return
• n = Number of times the return is compounded in a year
• t = Number of years you will stay invested

Example of Lumpsum Calculator

Let’s understand how the lumpsum calculator works with a simple example.

Suppose you invest ₹1,00,000 in a mutual fund for 10 years, and you expect a return of 12% per year, compounded once a year. That means:

• P = ₹1,00,000
• r = 12%
• n = 1
• t = 10

Now use the lumpsum return calculator formula:

Lumpsum Returns
=₹1,00,000 × (1+12%)
=₹1,00,000 × (1.12)10
=₹3,10,585 (approx.)

So, after 10 years, your investment would grow to around ₹3,10,585. That’s a gain of ₹2,10,585 over your original investment.

Projected Lumpsum Returns

If you invest ₹50,000 at a 12% annual return, here’s how your investment would grow each year for the first 10 years, assuming compound interest once per year:

Advantages of using Lumpsum Calculator

Below are some benefits of using mutual fund lumpsum calculator for your investment needs:

• Better Financial Planning: It assists in better financial planning by offering an estimate of how much your investment can grow over time.
• Convenient Access: As an online tool, the mutual fund calculator is accessible anytime and from anywhere.
• Time Saving: It significantly reduces the time and complexity of manual calculations, especially when comparing different investment durations or return rates.