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Lumpsum calculator
Type an amount, an expected yearly return and the years. See what it grows to, when it doubles, and what that is worth in today’s money.
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How to use it
- Type the amount you invest once, for example ₹1,00,000.
- Type the yearly return you want to test. It is your assumption; no scheme guarantees a return.
- Type the number of years.
- Set Adjust for inflation? to Yes to see the result in today’s money.
You get the final value, the gains, roughly how many years the money takes to double at that return, a chart, and the value at the end of every year.
The formula
A = P × (1 + r)^t, where P is the amount invested, r the yearly return as a fraction (12% is 0.12) and t the number of years. The return is added once a year, and the next year’s return is earned on the bigger amount: that is compounding. Most online lumpsum calculators work the same way. If the return were added monthly instead, at 1% a month, the result would be a little higher: ₹3,30,039 instead of ₹3,10,585 in the example below.
Worked example
₹1,00,000 invested once, for 10 years, at 12% a year if that held every year:
| Year | Value at year end | Gains so far |
|---|---|---|
| 1 | ₹1,12,000 | ₹12,000 |
| 2 | ₹1,25,440 | ₹25,440 |
| 6 | ₹1,97,382 | ₹97,382 |
| 10 | ₹3,10,585 | ₹2,10,585 |
Year 1 earns ₹12,000. Year 10 earns ₹33,277 (₹3,10,585 − ₹2,77,308), almost three times as much at the same rate, because it is earned on a bigger amount. Over the 10 years the money grows 3.1 times.
The rule of 72
A quick check: 72 ÷ the yearly return gives roughly the number of years money takes to double. At 12%, 72 ÷ 12 = 6 years. The exact figure is 6.1 years, which the calculator shows. At 8% the rule gives 9 years, and at 6%, 12 years.
Lumpsum or SIP?
A lumpsum puts all the money in at one price, so it has the longest time to grow, but the result depends more on the day you invest: a fall soon after hits the whole amount. A SIP spreads the money over many months and many prices. Neither is better in every case. SIP vs lumpsum compares them with the same ₹6 lakh, and the SIP calculator works out the monthly version.
Inflation
With the switch on, the calculator divides the result by (1 + inflation)^years. At 6% inflation, the ₹3,10,585 of the example is worth about ₹1,73,429 in today’s money (₹3,10,585 ÷ 1.7908). The money still grows in real terms, but 1.7 times rather than 3.1.
What the calculator leaves out
Real returns change every year, while the calculator uses the same return for every year. Not included: the expense ratio (already inside a scheme’s published returns), exit loads, and tax when you sell. For equity-oriented mutual fund units held more than 12 months, long-term gains above ₹1.25 lakh a year are taxed at 12.5%; within 12 months, gains are taxed at 20%. Units of debt funds bought on or after 1 April 2023 are taxed at your slab rate. Ask a chartered accountant about your own case.
Questions people ask
- Is a lumpsum better than a SIP?
- Neither is better in every case. A lumpsum has more time in the market but depends more on the day you invest; a SIP spreads the entry over many prices and suits money that comes in every month.
- How many years does it take to double my money?
- Divide 72 by the yearly return for a rough answer: at 12%, about 6 years. The calculator shows the exact figure for the return you type.
- Does the calculator compound monthly?
- No, once a year, as most lumpsum calculators do. Monthly compounding at the same yearly rate would give a little more.
- What about taxes?
- They are not included. Equity-oriented fund units held over 12 months pay 12.5% on long-term gains above ₹1.25 lakh a year, and 20% within 12 months; debt fund units bought from 1 April 2023 are taxed at your slab rate.
- Can I add a SIP on top of a lumpsum?
- Yes. Work out each one on its own, with this calculator and the SIP calculator, and add the two results.