How to use this calculator?
Imagine you have ₹2,00,000 to invest in a mutual fund and you expect an annual return of 12% over the next 10 years. Just enter the following values:
- Investment Amount: ₹2,00,000
- Investment Period: 10 years
- Expected Annual Return: 12%
Once you input these details, the calculator will show you the future value of your investment at the end of 10 years — helping you understand how much your money can grow.
This is especially useful for evaluating one-time investments like a bonus, fixed deposit maturity, or surplus savings.
Lumpsum calculator
This calculator estimates the maturity amount of a one-time investment made for a specified duration at an expected rate of return. It’s an ideal tool to project the value of your idle money when invested wisely over time.
Formula used in this Calculator? With explanation
The calculator uses the **compound interest** formula for a single investment:
FV = P × (1 + r)n
- FV = Future Value (value of investment after the investment period)
- P = Principal amount (initial investment)
- r = Annual interest rate (expressed in decimal, i.e. 12% = 0.12)
- n = Number of years
This formula assumes compounding occurs once per year. It helps you calculate how much your investment will be worth after a specific period.
Understanding the benefits:
Lumpsum investments are a smart choice when you have idle money sitting in your account — whether it’s from a windfall, bonus, or inheritance. Instead of letting it lie unused, investing it in mutual funds can unlock growth potential through compounding.
This method is simple and powerful — you invest once, and then let time and market growth do the work. Since it’s a one-time action, it’s ideal for investors who prefer minimal involvement after the initial commitment.
Lumpsum investing also gives you the flexibility to choose your time horizon and risk profile. While timing the market can be tricky, staying invested for the long term often evens out the ups and downs.
Before putting a large sum into mutual funds, it’s always advisable to consult a financial advisor. This ensures your investment aligns with your goals and risk appetite.
Disclaimer:
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