Lump Sum Calculator
Calculate the future value of a one-time investment. See total maturity value, gains, absolute return and CAGR with a year-by-year breakdown.
| Year | Total Gain | Total Value | Growth |
|---|---|---|---|
| Year 1 | +₹60,000 | ₹5,60,000 | |
| Year 2 | +₹1,27,200 | ₹6,27,200 | |
| Year 3 | +₹2,02,464 | ₹7,02,464 | |
| Year 4 | +₹2,86,760 | ₹7,86,760 | |
| Year 5 | +₹3,81,171 | ₹8,81,171 | |
| Year 6 | +₹4,86,911 | ₹9,86,911 | |
| Year 7 | +₹6,05,341 | ₹11,05,341 | |
| Year 8 | +₹7,37,982 | ₹12,37,982 | |
| Year 9 | +₹8,86,539 | ₹13,86,539 | |
| Year 10 | +₹10,52,924 | ₹15,52,924 |
How the Lump Sum Calculator Works
The lump sum calculator uses the compound interest formula: A = P × (1 + r)ⁿ, where A is the maturity amount, P is the principal, r is the annual return rate and n is the number of years. Unlike SIP which invests periodically, a lump sum invests the entire amount at once — so the full principal compounds from day one, which is advantageous in consistently rising markets. See our Compound Interest Calculator for more detail on the formula.
Lump Sum vs SIP — When to Use Each
Lump sum outperforms SIP in steadily rising markets because the entire corpus is invested and compounding from day one. SIP outperforms in volatile or falling markets through rupee cost averaging. Practical guidance: invest windfalls (bonus, FD maturity, inheritance) as lump sum if markets are near long-term averages or below; use SIP for regular monthly income deployment. Compare both using our SIP Calculator.
Realistic Return Expectations
Historically, diversified equity mutual funds in India have delivered 10%–15% CAGR over 10+ year horizons. Large-cap index funds have averaged 10%–12%; mid-cap and small-cap funds have averaged 13%–18% with higher volatility. For conservative planning, use 10%–12% as your expected return. For FD equivalent comparison, use 6%–8%. Always invest with a time horizon of at least 5–7 years for equity lump sum investments.
How ₹5 Lakh Lump Sum Grows at Different Return Rates
The table below shows how a one-time investment of ₹5 lakh grows over different time horizons at common return rates:
| Duration | At 8% p.a. | At 10% p.a. | At 12% p.a. | At 15% p.a. |
|---|---|---|---|---|
| 5 Years | ₹7,35,000 | ₹8,05,000 | ₹8,81,000 | ₹10,06,000 |
| 10 Years | ₹10,79,000 | ₹12,97,000 | ₹15,53,000 | ₹20,23,000 |
| 15 Years | ₹15,86,000 | ₹20,89,000 | ₹27,37,000 | ₹40,68,000 |
| 20 Years | ₹23,31,000 | ₹33,64,000 | ₹48,23,000 | ₹81,83,000 |
| 30 Years | ₹50,31,000 | ₹87,25,000 | ₹1,49,80,000 | ₹3,29,90,000 |
* Figures are indicative. Actual returns are market-linked and not guaranteed.
Using STP to Reduce Timing Risk
A Systematic Transfer Plan (STP) is a smart middle ground between lump sum and SIP. You invest your entire windfall into a liquid or debt fund immediately (earning ~6–7% while waiting), then transfer a fixed amount each month into an equity fund. This captures the safety of parking funds while spreading your equity entry over 6–12 months to reduce the impact of poor timing. STP is especially useful when markets appear overvalued or when the investment amount is large (above ₹5 lakh).
Tax on Lump Sum Investment Gains
For equity mutual funds: gains on investments held over 1 year are taxed at 12.5% LTCG above ₹1 lakh per year; gains on investments held under 1 year are taxed at 20% STCG. For debt funds purchased after April 2023: gains are added to income and taxed at your applicable slab rate. This makes long-term lump sum equity investments highly tax-efficient compared to FD interest which is fully taxable every year. Use our Income Tax Calculator to factor in tax impact on your final returns.
✓Verified by ToollyX Team · Last updated June 2026
Frequently Asked Questions
Disclaimer: Results assume a constant annual return rate. Actual market returns vary year to year. Past performance does not guarantee future results. This calculator is for educational purposes only.