A lumpsum calculator shows what happens when someone invests a large amount all at once. It's useful for anyone planning to put a bonus, inheritance, or saved-up money into mutual funds or other investments.
The difference from SIP is simple: SIP means investing small amounts regularly, like every month. Lumpsum means putting in one big amount and letting it grow over time.
Estimation is based on the past performance
Invested Amount
Est. Returns
Using the calculator takes just a minute:
Enter the investment amount – How much money is going into the investment
Choose the expected return – What percentage return is expected per year
Pick the time period – How many years the money will stay invested
See the results – The calculator shows three things: the amount invested, the returns earned, and the total value
The sliders can be moved around to try different numbers. Everything updates right away, so it's easy to compare options.
Lumpsum investment means putting a large sum of money into an investment all at once, instead of breaking it up into smaller payments.
This makes sense when someone has a chunk of money available. The money grows through compounding. Returns earned in one year start earning their own returns the next year. The longer the money stays invested, the bigger this effect becomes.
The calculator uses a standard compound interest formula:
A = P (1 + r/n)^(nt)
Here's what each part means:
Most mutual fund calculations assume returns compound once a year, so the formula becomes simpler:
A = P (1 + r)^t
This formula shows how money grows over time. Each year, returns are earned not just on the original amount, but also on the returns from earlier years. That's compounding.
Here's how it works with actual numbers.
Example 1:
Someone gets a ₹5 lakh bonus and wants to invest it for 10 years in a fund that typically gives 12% returns per year.
Details:
The calculation:
A = 5,00,000 × (1.12)^10
A = 5,00,000 × 3.106
A = ₹15,52,924
What this shows:
The ₹5 lakh grows to about ₹15.5 lakh in 10 years. The returns alone are over ₹10 lakh.
Example 2:
Investing ₹15 lakh for 5 years at 12% returns:
A = 15,00,000 × (1.12)^5
A = ₹26,43,513
The investment grows to ₹26.4 lakh. Returns earned are ₹11.4 lakh over 5 years.
Note: Please note that mutual fund returns are market-linked and based on CAGR assumptions.
Scheme Name |
Expense Ratio | 1Y Returns | |
|---|---|---|---|
DSP World Gold Mining Overseas Equity Omni FoF-Reg (G)Regular Fund | FoFs Overseas |
2.36% | 156.16% p.a. | |
HDFC Silver ETF Fund of Fund - Regular (G)Regular Fund | FoFs Domestic |
0.60% | 146.50% p.a. | |
Nippon India Silver ETF FOF (G)Regular Fund | FoFs Domestic |
0.58% | 146.75% p.a. | |
ICICI Pru Silver ETF FOF - Reg (G)Regular Fund | FoFs Domestic |
0.64% | 146.48% p.a. | |
Aditya Birla SL Silver ETF FOF (G)Regular Fund | FoFs Domestic |
0.67% | 145.54% p.a. |
With real-time market access, analysis tools, and smooth execution capabilities, you can buy and sell stocks on NSE and BSE exchanges.
You get to choose from 4,000+ mutual fund schemes to invest easily and enhance your wealth over time.
We also offer IPO investments, helping you participate in promising new listings with ease.
Buy Now, Pay Later helps you trade bigger, boosting your capital by up to 4x.
Diversify your portfolio with government and corporate bonds, to get steady returns at low risk
Make flexible contributions to your retirement fund, get tax breaks, and make sure your future is financially stable.
Easily keep track of your employee stock options, vesting dates, and exercise your rights efficiently.
Explore US investing opportunities through our platform, accessing global markets seamlessly.
Yes, the Bajaj Broking lumpsum calculator is extremely useful for investment planning as it gives you a clear idea of how your money could potentially grow over time.
You can use a lumpsum investment strategy if you have a large amount of liquid funds available or when the market is low, so you can minimise the initial investment cost.
Yes, a lumpsum calculator is extremely easy to use as it only requires three simple inputs. Even beginners can easily use this tool online without any guidance or hassle.
You can choose to invest a lumpsum amount in mutual funds or start a SIP, where you invest smaller fixed sums at periodic intervals.
A lumpsum investment may be more beneficial in a bullish market as it allows you to capitalise on the growth opportunity. A SIP, however, spreads your investment over time and leverages market volatility to your advantage.
An online lumpsum calculator gives results using a universal equation for compound interest. It calculates the estimated full value of your investment based on your investment amount, investment length, and the expected rate of return. Based on the inputs you provide, the results will be mathematically accurate because it only allows you to put real numbers in that will provide a logical outcome. It demonstrates how a one-time investment will grow.
SIP and lumpsum calculators are not the same. A lumpsum calculator will assess the projected value of a one-time investment, while a SIP calculator will assess the returns from periodic investments. They both utilize the principles of compounding, as they are just fundamentally different investment strategies that have their own mechanisms for calculating returns.
A lumpsum calculator requires three pieces of information: the one-time amount you will invest, the number of years, and the expected annual return on your investment. Once all that information is provided to the calculator, it will then provide you with your total value, the estimated returns, and the amount you will have spent by a compounding interest calculation in just a few moments.
SIP means investing a fixed amount every month or quarter. Lumpsum means investing one big amount at once. SIP spreads out the investment over time and reduces the impact of market ups and downs. Lumpsum can work better when someone has money available now and the market looks reasonable. Both have their place depending on the situation.
Yes, the calculator works for all types of mutual funds—equity, debt, hybrid, whatever. It gives an estimate of how the investment might grow. Just remember, these are projections. Real returns depend on how the fund actually performs, and markets can be unpredictable.
It depends on the type of fund. You can check the returns that specific fund has given in the past or that category of fund for instance debt funds and based on that you can set a benchmark for yourself to calculate. Past returns don't guarantee what will happen going forward.
No, the numbers shown are before taxes. Capital gains tax needs to be calculated separately. For equity funds held longer than a year, gains above ₹1.25 lakh are taxed at 12.5%. If sold within a year, short-term gains are taxed at 20%. Tax treatment varies based on the fund type and how long it's held.
There's no single answer. Lumpsum makes sense when someone has a large amount ready to invest. SIP works better for people who want to invest from their monthly income. Many investors do both—SIP for regular investing and lumpsum when they get a bonus or other windfall. The right choice depends on available funds and personal preference.
Yes, it's quite useful for planning. For example, if someone needs ₹50 lakh for their child's education in 15 years, the calculator can show how much needs to be invested today to reach that goal. Different return rates and time periods can be tested to see what works. It's a good way to set realistic targets.
No Result Found
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading
Open Your Free Demat Account
Enjoy low brokerage on delivery trades
|
Please Enter Mobile Number
Open Your Free Demat Account
Enjoy low brokerage on delivery trades
|
