Lumpsum Calculator

The Lump sum Calculator is a hassle-free tool to calculate the estimated returns on Lumpsum investments. The Calculator is handy for any experienced investor or beginner. Investors must be familiar with all types of returns in detail so they can avail the maximum benefits from their investment. Therefore, it is a valuable tool for calculating the estimated return. The Calculator is especially beneficial in determining which investment plan will yield the highest profits.

  • 500
  • 10 Lac
  • 1
  • 30
  • 1
  • 30

Total investment



YearInvested Amount(₹)Wealth Gained(₹)Expected Amount(₹)

What is Lumpsum Investment?

When an entity (individual or organisation) invests the entire principal amount in any type of mutual fund in one go, it is known as a lumpsum investment. High Net Worth Individuals (HNIs) or big-shot investors who have a substantial sum of money to invest or individuals with long-term investment ambitions sometimes adopt the lumpsum investment approach. However, to make a lumpsum investment in mutual funds, you must first do a thorough examination of the present market conditions.

What is a Lumpsum Calculator?

A lumpsum calculator is a cutting-edge tool that allows investors determine their ROIs when making a lump sum investment in the mutual fund. The Urban Money Lumpsum Investment Calculator caters to the computation of the maturity amount for a specified lumpsum investment. It depicts the probable wealth that the individual will gain in a particular time frame for the said amount invested initially.

How Does a Mutual Fund Lumpsum Calculator Help You?

The Urban Money Lumpsum Calculator can be used by investors to assess the expected returns on their lumpsum investments and whether a certain investment option will help them achieve their financial objectives or not.

A mutual fund lumpsum calculator can be helpful in the following ways:

  • It calculates the expected return over the full investment tenure. To get a precise approximation, you will require specific details, including the investment amount, estimated rate of return and investment tenure in years.
  • Once the investors have a projected concept of the maturity value of their investments, the lumpsum calculator allows them to put forward better planning and management of finances.
  • Using a lumpsum investment calculator saves time and helps eliminate human errors.
  • A lumpsum return calculator is a simple and convenient tool to use, even for inexperienced investors.
  • It’s important to keep in mind that because mutual fund investments are susceptible to market risks, exact returns cannot be predicted.

How Does a Lumpsum Calculator Work?

A mutual fund lumpsum calculator is a handy yet automated tool, which carries out all typical mathematical computations on your behalf. To compute values with utmost ease, be prepared with specific values, including:

  • The investment quantum
  • The term for which the amount will be invested
  • The estimated rate of return that the individual predicts to earn through mutual fund investment.

Once you enter the above-mentioned inputs into the lumpsum calculator, you will get your investment’s maturity value easily.

Lumpsum Calculator Formula to Calculate Mutual Fund Returns

A lumpsum calculator works on a compound interest formula for computing the estimated investment returns wherein one variable represents the number of times the levied interest rate is compounded annually.

A = P (1 + r/n) ^ nt


  • A represents the estimated returns
  • P represents the current investment value
  • r denotes the estimated rate of return
  • t is the time frame for which the investment is made
  • n denotes the number of annual compound interests

For better understanding let’s go through an example.

Ravi invests INR 15 lakh as a lumpsum investment in a mutual fund scheme with average returns rate of 12 percent per annum and compounds in the interval of six months for the term of 5 years.

The case-specific estimated returns would be:

A = 15,00,000 (1 + 12/2) ^ 2/5

This accounts to be a complex equation that would be difficult to grasp for a major percentage of novice investors. That’s exactly where a lumpsum calculator will come into play to compute the values in a fraction of a second.

When computed through the formula, the estimated returns at the end of investment tenure would be INR 26,43,513.

Difference Between Lumpsum and SIP

Although SIP and lumpsum investments are both part of mutual funds, they differ on various parameters.

Parameter Lumpsum Investment SIP Investment
Number of Investments Once in the investment tenure Regular investments, fixed or variable
Time Frame of Investment The term is subject to individuals investment goals along with the market volatility The investment term is subject to the investment objectives but is immune to fluctuating market conditions
Investment Cost Investment cost is high and at the same time requires a notable one-time investment Investment cost is low and allows the investor to invest an amount as low as INR 500
Average Costs Investor do not enjoy benefits of rupee cost averaging In SIP investment, investors enjoy the convenience of rupee cost averaging. This is because the investor purchase the mutual fund units at varying market cycles

Why Should You Count on a Lumpsum Calculator?

  • The Lumpsum Calculator allows you to access the overall returns on a lump-sum investment in split seconds.
  • You get the chance to determine whether you will accomplish your financial obligations at the end of the investment period or not.
  • It is an easy to use cutting-edge tool to figure out lump-sum investment returns.
  • A lumpsum investment calculator allows you to plan and manage your finances in a better way by giving you an estimate on investment returns.
  • It offers the utmost convenience to novice investors for computing the return on their investments as they don’t have to count on any tricky mathematical formulas anymore.
  • You get the flexibility of choosing investments that offer return beyond inflation for achieving investment goals over an extended time frame.

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Frequently Asked Questions (FAQs)

How do you calculate a lumpsum?

You can calculate lumpsum investment returns through the mathematical formula: A = P (1 + r/n) ^ nt. Here, A represents the estimated returns, P represents the current investment value, r denotes the estimated rate of return, t is the time frame for which the investment is made and n denotes the number of annual compound interests. You can also count on the Urban Money Lumpsum Calculator to retrieve ROI results hassle-free.

Which lumpsum investment is best for 1 year?

Debt funds are a great way to invest in a lump sum mutual fund investment. They can provide better yields contrary to FDs while also avoiding lock-in. You can now choose from Liquid Funds, Ultra Short Duration Funds and Money Market Funds if you want to invest for a short period of time, up to a year.

Which lumpsum is best for 5 years?

The best lumpsum investments for 5 years are Canara Robeco Bluechip, Edelweiss Fund, BNP Paribas Large-cap Fund and Axis Bluechip.

Which is better: SIP or lumpsum?

To summarise, investors who understand the in-depth analysis of the market should consider lumpsum investments rather than SIPs since the former holds the potential to generate greater rewards. Whereas, SIP will be the foremost alternative for individuals who lack lump sum money or are a novice to market understanding.

Urban Money