loading
loading
loading
Finance
Project how a single upfront investment — a bonus, inheritance, or maturity payout — grows when invested all at once instead of spread over time.
Unlike a SIP, a lumpsum investment puts the entire amount to work on day one, so every rupee gets the maximum possible number of compounding cycles for the tenure you choose. Each month, the balance grows by the monthly-equivalent of your expected annual return, with no further money added — balance_next = balance × (1 + monthly rate). Assumptions: monthly compounding, a constant assumed annual return held flat for the whole tenure (actual market-linked returns vary year to year), and no entry load, expense ratio, or capital-gains tax deducted from the projected figure. Because nothing is added after the initial deposit, the entire growth in the result comes from time and rate alone — which is why a lumpsum investment is more sensitive to *when* you invest than a SIP is.
Lumpsum suits money you already have in hand — a bonus, inheritance, or maturity proceeds from another investment — and a long horizon where you're comfortable investing it all at the current market level. SIP instead spreads the entry price across many months, which softens the impact of investing right before a downturn.
No. It's an illustrative constant rate. Actual equity or mutual fund returns fluctuate year to year; this calculator uses one flat rate to make the long-run compounding effect legible, not to forecast next year's return.
This calculator models a single upfront deposit only. If you plan to invest a lumpsum now and also add money periodically afterward, use the SIP Calculator for the recurring portion and add both results together.