The Real Problem This Solves
You get a ₹3 lakh bonus and let it sit in your savings account earning 3%. Over a decade, that idle money loses to inflation instead of growing.
This calculator shows what that same lump sum could become if invested properly.
How a One-Time Investment Compounds
Lumpsum returns follow FV = P × (1+r)ⁿ. The entire amount compounds from day one, so a long horizon multiplies it powerfully.
Example: Sneha invests ₹1 lakh as a lump sum at an assumed 12% for 10 years. It grows to about ₹3.1 lakh, tripling without her adding a rupee more. The same ₹1 lakh left in a 3.5% savings account would reach only about ₹1.4 lakh.
| Investment | Duration | Est. Value (12%) | In Savings (3.5%) |
|---|---|---|---|
| ₹1,00,000 | 10 years | ₹3.1 lakh | ₹1.4 lakh |
| ₹3,00,000 | 10 years | ₹9.3 lakh | ₹4.2 lakh |
| ₹5,00,000 | 15 years | ₹27.4 lakh | ₹8.4 lakh |
Frequently Asked Questions
Is lumpsum better than SIP?
Lumpsum can earn more if invested when markets are low, but it carries timing risk. SIP averages out volatility. Many investors do both: a lump sum for windfalls, SIP for regular income.
Are these returns guaranteed?
No. They depend on market performance. The 12% is an assumed long-term equity average for illustration only.
Related Calculators
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