Calculator
Lumpsum Calculator
The future value of a one-time investment compounding at your chosen annual return.
dhanmetrics.com · Educational illustration only · Not investment advice
Projected at year 10
₹3,30,039
That’s 3.3× your invested capital
What this means
Your ₹1.0L grows into ₹3.3L over 10 years — about 3.3× without you adding a single rupee more. Long horizons are what make lumpsum investing forgiving.
What if you…
Stayed 20 years instead of 10
₹10.9L
+₹7.6L
Invested ₹2.0L (2×)
₹6.6L
+₹3.3L
Earned 14% returns (+2%)
₹4.0L
+₹72.2K
Educational illustration. Assumes a constant return at the entered rate, compounded monthly. Actual mutual fund returns vary.
Adjust your scenario
Type, drag, or tap a chip — the result on the right updates instantly.
Inputs
A one-time investment that grows with compounding.
Growth chart
How your wealth builds, year by year
Year 6 is the crossover — that’s when your compound growth quietly overtakes everything you’ve put in. After this point, your money earns more than you contribute.
Worked example
₹1,00,000 one-time investment for 15 years at 12% annualised return
Invested: ₹1,00,000 · Wealth gained: ₹4,47,360
A ₹1 lakh lumpsum at 12% compounds to ₹5.47 lakh in 15 years — a 5.5× multiplier. The rule of 72 confirms this: at 12%, money doubles every 6 years, so 15 years gives roughly 2.5 doublings.
Assumes annual compounding with no withdrawals.
Frequently asked questions
Real answers to the questions people search before using this calculator.
How is lumpsum return calculated?
The calculator uses the compound interest formula: Future Value = Principal × (1 + r)^n, where r is the annual return rate and n is the number of years. It also shows the wealth gain — the difference between maturity value and your initial investment.
Is it better to invest a lumpsum at once or stagger it?
If markets are clearly undervalued or you have a long horizon, a one-shot lumpsum maximises time in the market. If valuations are stretched, an STP (Systematic Transfer Plan) over 6–12 months reduces timing risk. Avoid splitting beyond a year — opportunity cost piles up.
What return rate should I assume for a lumpsum in mutual funds?
For equity mutual funds, 11–13% annualised is the standard long-term assumption (Nifty 50 has delivered ~12% CAGR over 20+ years). For debt funds 6–7%, hybrid funds 8–10%, and index funds typically 11–12% net of expenses.
How are lumpsum mutual fund gains taxed in India?
For equity funds, gains under 12 months are STCG taxed at 20%; gains over 12 months are LTCG taxed at 12.5% beyond ₹1.25 lakh per year. For debt funds (bought after 1 April 2023), gains are taxed at your income-tax slab regardless of holding period.
Should I prepay a home loan or invest a lumpsum?
If your home loan rate is 8.5% and you expect equity returns of 12% post-tax, investing wins on math. But prepayment is a guaranteed risk-free return equal to the loan rate. A balanced approach — partial prepayment plus partial investment — often beats the all-or-nothing choice.
What is the rule of 72 for lumpsum doubling?
Divide 72 by the annual return rate to estimate how long your money takes to double. At 12% it doubles in 6 years, at 9% in 8 years, at 7% in ~10 years. Useful for quick mental math without opening a calculator.