Lumpsum Calculator
Project a one-time investment forward with compound interest. Live ₹ results, a year-by-year sense of how compounding accelerates, the exact formula, and a worked example you can verify by hand.
Estimates only — actual market returns vary year to year and can be negative.
Project a One-Time Investment
Type a value or drag the slider — both stay in sync and the result updates instantly. Nothing you enter leaves your browser.
The Lumpsum (Compound Interest) Formula, Explained
FV = PV × (1 + r)years
- PV — the present value: your one-time investment today.
- r — the assumed annual growth rate as a decimal (12% → 0.12).
- years — how long the money stays invested, compounding once a year.
Each year the entire balance — original capital plus all previous growth — earns the rate again. That is why the curve bends upward: growth earns growth.
Worked example: ₹1,00,000 at 12% for 15 years
- (1.12)15 ≈ 5.4736.
- FV = 1,00,000 × 5.4736 ≈ ₹5,47,357.
- Estimated returns = 5,47,357 − 1,00,000 = ₹4,47,357.
Watch how the gains are back-loaded: after 5 years the corpus is about ₹1.76 lakh (+₹76k), after 10 years about ₹3.11 lakh (+₹2.11 lakh), and after 15 years ₹5.47 lakh (+₹4.47 lakh). The final five years add more rupees than the first ten combined — the practical argument against interrupting compounding once it has started.
Quick mental check: the Rule of 72
72 ÷ rate ≈ years to double. At 12%, that is ~6 years per doubling, so 15 years is ~2.5 doublings: 1 → 2 → 4 → ~5.5 lakh — agreeing with the precise ₹5.47 lakh above. Use it to sanity-check any projection a seller shows you.
Deploying a Lumpsum in the Current Market
Data as of —
Timing risk is the lumpsum investor's defining problem, and mid-2026 illustrates it well. From our research desk's data file: the Nifty 50 closed at 23,161.60 and the Sensex at 73,832.55 on June 11, 2026, with the Sensex reported down roughly 9.6% year-over-year amid FII outflows and Middle East tensions. Anyone who deployed a lumpsum at last year's highs is sitting on losses; anyone deploying today gets meaningfully lower entry prices — several quality large-caps (TCS at ~14.8× earnings, HDFC Bank at ~15.1× per screener.in) trade at multi-year valuation resets. Neither fact tells you what happens next.
Three ways investors manage timing risk
- Tranching: split the amount into 3–12 equal parts deployed monthly. You give up some upside in a rising market in exchange for a smoother average entry price.
- STP (systematic transfer plan): park the lumpsum in a liquid fund and auto-transfer a fixed amount into equity each month — the institutional version of tranching, keeping idle cash earning ~6–7%.
- Valuation discipline: deploy faster when broad valuations are below their long-run averages, slower when they are stretched. Requires judgment and honesty about not knowing the bottom.
Index levels and valuations above are approximate as of the June 10–11, 2026 close, aggregated from public sources (Trading Economics, screener.in and others) — re-verify before any decision. Educational content, not investment advice and not a timing call.
Related tools: SIP calculator for monthly investing · CAGR calculator to measure a past investment's annualized return.
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Lumpsum Calculator FAQs
Lumpsum or SIP — which is better?
Mathematically, a lumpsum invested earlier captures more compounding time if markets rise steadily. In practice, lumpsum investing concentrates timing risk in a single day — entering just before a fall hurts, and the Sensex was reported down roughly 9.6% in the year to June 11, 2026. Many investors split the difference: invest a lumpsum in 3–12 tranches (an STP from a liquid fund is the common route), or use a SIP for salary income and reserve lumpsums for windfalls.
What is the Rule of 72?
Divide 72 by your annual return to estimate the years needed to double your money. At 12%, money doubles roughly every 6 years; at 8%, every 9 years. It is a quick mental cross-check on the calculator: ₹1 lakh at 12% for 15 years spans about 2.5 doublings — 1 → 2 → 4 → ~5.5 lakh — which matches the computed ₹5.47 lakh.
How are lumpsum equity gains taxed in India?
For listed equity and equity mutual funds: gains on holdings over 12 months are long-term, taxed at 12.5% above the ₹1.25 lakh annual exemption; gains within 12 months are short-term, taxed at 20%. Debt fund gains are taxed at your slab rate. STT applies on equity transactions. Rates as currently legislated for FY 2026-27 — confirm with a tax professional before acting.
Is June 2026 a good time to invest a lumpsum?
We do not give timing calls. What the data shows: the Nifty 50 closed at 23,161.60 on June 11, 2026 and the Sensex at 73,832.55, down roughly 9.6% year-over-year amid FII outflows and geopolitical tensions. Corrections lower entry valuations but can persist or deepen. If timing worries you, deploying in tranches over several months reduces the regret of a badly timed single entry. Consult a qualified financial advisor for your situation.
Does the calculator include tax, inflation or fund costs?
No. The output is a nominal, pre-tax, pre-cost estimate assuming one constant annual rate compounded yearly. Real returns vary year to year and can be negative, expense ratios reduce fund returns, and at 6% inflation a rupee halves in purchasing power roughly every 12 years. Treat the result as a planning estimate, not a promised balance.