Planning a one-time investment? Our Lumpsum Calculator helps you estimate the future value of your investment, allowing you to make informed financial decisions. Whether you're saving for a long-term goal or looking to grow your wealth, this tool provides accurate projections based on your chosen investment amount, duration, and expected rate of return.
Your investment of $10,000 monthly for 5 years will grow to $739,667. This includes your total investment of $600,000 and earnings of $139,667, which is a 23.28% return on your investment.
A lumpsum investment is a single, one-time investment made into a financial instrument like mutual funds, stocks, or fixed deposits. Unlike systematic investments, where you contribute regularly over time, a lumpsum investment involves depositing a large amount at once. This strategy is often used when you have a substantial amount of money available and want to invest it for a specified period.
The future value of a lumpsum investment is calculated using the compound interest formula:
The formula is:
Future Value = P × (1 + r/100)n
Where:
This formula takes into account the compounding effect of your investments, allowing you to see how your money can grow over time. The calculator also considers the frequency of your SIP contributions (e.g., monthly), helping you understand the impact of regular investing.
Lumpsum investments can be an effective strategy for those with a high risk tolerance and a significant amount of capital to invest. They offer the potential for higher returns over time, especially in a bullish market. However, it's crucial to assess your financial situation and investment goals before committing to a lumpsum investment.
Use our Lumpsum Calculator to take the first step toward achieving your financial goals. Whether you're investing for retirement, a child's education, or any other purpose, this tool helps you plan with confidence.