A lump sum benefits most from compounding when invested early, but timing matters more than with an SIP. Equity mutual funds in India have historically returned around 10–14% a year over long periods, with big swings.
How to use the Lumpsum Calculator
- Total investment
- Expected return (p.a.)
- Time period
- Inflation
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the amount invested, the expected annual return, the period and inflation.
Tips
- Figures use the latest published rates; government scheme rates are revised every quarter.
- Choose between the old and new tax regimes carefully – deductions only count in the old regime.
- Keep proofs of investments and rent for your employer and the tax return.
- Use the official portal of each scheme for exact maturity values.
Common mistakes to avoid
- Assuming scheme interest rates are fixed for the whole term.
- Forgetting tax on interest from fixed and recurring deposits.
- Missing the yearly minimum deposit on PPF or Sukanya Samriddhi accounts.
Inputs explained
| Field | What to enter |
|---|---|
| Total investment | Amount in ₹ |
| Expected return (p.a.) | In % |
| Time period | In years |
| Inflation | In % |
What each result means
- Total value = [Total investment]×(1 + [Expected return (p.a.)]÷100)^[Time period]
- Estimated returns = [Total value] – [Total investment]
- Value in today’s money = [Total value]÷(1 + [Inflation]÷100)^[Time period]
Example values
How the main result changes when Total investment changes and everything else stays at the example values above:
| Total investment | Total value |
|---|---|
| 50,000 | 155,292.41 |
| 75,000 | 232,938.62 |
| 100,000 | 310,584.82 |
| 125,000 | 388,231.03 |
| 150,000 | 465,877.23 |
| 200,000 | 621,169.64 |
Formula
Future value = P × (1 + r)^yearsReal value = future value ÷ (1 + inflation)^yearsWorked example
Inputs — Total investment: ₹100,000; Expected return (p.a.): 12 %; Time period: 10 years; Inflation: 5 %.
Results — Total value = ₹310,584.82; Estimated returns = ₹210,584.82; Value in today's money = ₹190,672.14.
Frequently asked questions
What will ₹1 lakh become in 10 years at 12%?
About ₹3.1 lakh.
Is a lump sum better than an SIP?
Lump sums can earn more in rising markets; SIPs reduce timing risk.
How are mutual fund gains taxed?
Equity LTCG above ₹1.25 lakh a year at 12.5%; STCG at 20%.
What formula does the Lumpsum Calculator use?
Future value = P × (1 + r)^years.