Lump Sum Calculator
Calculate returns on a one-time mutual fund investment
Find out how much your one-time investment can grow over time. See the power of compounding on a lump sum investment in mutual funds.
What is Lump Sum Investment?
A lump sum investment is when you invest a large amount of money at once in a mutual fund or other investment vehicle, as opposed to investing smaller amounts periodically (like SIP). This approach works well when you have a windfall — such as a bonus, inheritance, or matured FD — and want to put it to work immediately.
The advantage of lump sum investing is that your entire capital starts compounding from day one. However, it carries more timing risk — if markets drop right after your investment, your entire amount is affected.
Lump Sum vs SIP
Lump sum tends to outperform SIP in rising markets because your full capital is invested from the start. SIP performs better in volatile or declining markets because it averages your purchase cost. For most investors, a combination of both works best — invest lump sums when you have them, and maintain regular SIPs for disciplined investing.
Compound Interest Formula
Where: P = Principal, r = Annual rate, n = Compounding frequency per year, t = Time in years