Question 1

What is a lumpsum calculator?

Accepted Answer

It estimates the future value of a one-time investment left to compound. Enter the amount, the expected annual return, and the tenure, and it shows the estimated returns and the total value at the end of the period.

Question 2

How is the future value calculated?

Accepted Answer

With annual compounding: the investment grows by the expected return each year, and every year's growth itself earns returns in the following years. For example, ₹15 lakh at 12% for 10 years grows to about ₹46.6 lakh - over ₹31.5 lakh of it from compounding alone.

Question 3

When does a lumpsum make more sense than a SIP?

Accepted Answer

When the money already exists - a bonus, an inheritance, a maturing deposit. Deploying it earlier gives every rupee more compounding time. A SIP is the right tool when the money arrives monthly; it is not a superior strategy for cash you already hold.

Question 4

What return rate should I assume?

Accepted Answer

Match it to where the money will actually sit: roughly 6-7% for debt instruments, 10-14% as a long-term equity assumption. The calculator accepts 5% to 25%, but conservative assumptions produce plans that survive bad decades.

Question 5

Can I withdraw before the tenure ends?

Accepted Answer

Usually yes, depending on the product - but early withdrawal gives up the strongest years of compounding, since growth accelerates toward the end of the period. Exit loads and taxes can further reduce what you take home.

Question 6

Does the calculator account for inflation or taxes?

Accepted Answer

No - it projects gross value at your assumed return. To think in today's purchasing power, use a return net of inflation (for example, 12% nominal at 5% inflation is roughly a 6.7% real return), and remember capital gains tax applies on redemption.

Lumpsum Calculator

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