Lumpsum Calculator

A lumpsum is a single, one-time investment that starts compounding in full from day one. A SIP spreads the same total money across many smaller monthly instalments, so each instalment only compounds for the time remaining after it's invested — the first instalment gets almost the full duration, the last gets almost none. A lumpsum invested for a full period generally has a higher theoretical future value at the same assumed return, but a SIP averages your purchase price over time, which can reduce the impact of investing right before a market downturn.

A lumpsum concentrates timing risk — the entire amount is invested at whatever market level exists on that day, so a downturn immediately afterward affects your full corpus. A SIP spreads that timing risk across each instalment's own entry point. Neither is inherently "better"; a lumpsum tends to suit money you can leave untouched for a long horizon, while a SIP tends to suit ongoing monthly savings or a more risk-averse entry into markets.

This calculator compounds your initial investment annually at your assumed expected return: future value = initial investment × (1 + return)^years. It's the simplest compound-interest calculation possible, since there are no further contributions to account for — just one amount growing for the full duration.

No. The expected annual return you enter is an assumption you choose, not a guaranteed or historical rate this calculator looks up. Actual market-linked investments (mutual funds, equity, and similar instruments) can return more or less than any assumption in a given year, and past performance doesn't guarantee future returns. Use this as a planning estimate, not a promise.

A lumpsum tends to make sense when you already have the money available (a bonus, inheritance, or maturity payout) and a long enough horizon to ride out short-term volatility — the earlier the full amount starts compounding, the more time it has to grow. A SIP tends to make more sense when you're investing out of ongoing income rather than a windfall, or when you'd rather average your entry price than commit everything at a single market level.