Lumpsum Investment Plan Calculator

Lumpsum Calculator

What is a Lumpsum Investment

Lumpsum investment or one-time investment is a style of investment in which you invest once (lumpsum) and allow your invested money to generate compounding returns over a given time frame.

What is a lumpsum calculator?

A lumpsum investment calculator helps estimate the returns* made by an investor on a lumpsum investment. Simply fill in the necessary details and the calculator will compute an approximation of the maturity value based on the data provided.

How does a mutual fund lumpsum calculator help you?

Investors can use this calculator to gauge the estimated returns on their lumpsum investments. A prospective investor can thus evaluate whether a selected investment option is meeting their financial goal at the end of the investment term or not.

Here are some of the benefits of using a lumpsum calculator:

  1. It provides you with the estimated return for the entire investment period. You need to mention details such as the investment amount, expected rate of return, and tenure (1-year, 3-years, etc.) of investment to reach a near-perfect approximation*.

  2. It helps investors plan and manage their finances better once they have an estimated idea of the maturity value of their investment(s).

  3. Using a lumpsum calculator saves time spent on making manual calculations and also aids in avoiding human errors.

  4. It is quite easy and convenient even for novice investors to use a lump sum investment return calculator with ease.

  5. One should note that as mutual fund investments are subject to market risks, one cannot predict the returns with accuracy.

Lumpsum Calculator Formula to calculate mutual fund returns

Lumpsum calculators use a specific formula to compute the estimated returns on investments. It is a compound interest formula with one of the variables being the number of times the interest is compounded in a year.

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


A = estimated returns

P = Present value of investment

r = estimated rate of return

t = tenure

n = number of compound interests in a year

Let’s understand this with the help of an example.

Rakesh invests Rs15 lakh in a mutual fund scheme that offers average returns at the rate of 12% p.a. and compounds every six months for 5 years.

The estimated future returns, in this case, would be:

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

As you can surmise, this is a complex equation that could be out of grasp for a majority of novice investors. Here’s where a lumpsum calculator comes to your rescue and makes this calculation instantly.

In this case, the estimated returns at the end of the tenure would be Rs26,43,513.

What’s the difference between Lumpsum and SIP?

In lumpsum investment one needs to invest only once whereas, in SIP or Systematic Investment Plan one invests a fixed amount periodically. In lumpsum investment style the market condition plays a huge role because if the market makes a major correction after your investment, then it might take few years to reach your original investment amount.

Whereas, in SIP or systematic investment style one need not worry about timing the market as investment is made during both ups and downs of the market. Therefore, the return generated is weighted average return.

Benefits of ClearTax Lumpsum Calculator

  • The ClearTax Lumpsum Calculator shows you the return on a lump-sum investment in seconds.
  • It helps you evaluate if you can reach the financial goal at the end of the investment term.
  • It is an excellent tool to find the return on a lump-sum investment in mutual funds.
  • It helps you manage finances better as you have an idea of the maturity value of your investments.
  • It is easy and convenient for novice investors to calculate the return on their investments.
  • You can select investments that may offer return above inflation to achieve investment goals over the long-term.

How to use the ClearTax Lump sum Calculators?

The ClearTax Lumpsum Calculator shows you the future value of your mutual fund investment in seconds. To use the ClearTax Lumpsum Calculator.

  • You must enter the investment amount.
  • Fill up the investment duration in years.
  • You then enter the annual expected rate of return.
  • The ClearTax Lumpsum Calculator will show you the return on your investment. It also displays the wealth gain.