Year by year
| Year | Total invested | Returns | Value |
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What is a lumpsum investment?
A lumpsum is a one-time investment of an amount you already have: a bonus, an inheritance, maturity proceeds from a fixed deposit, or savings that have been sitting idle. The whole amount starts compounding from day one, which is why, for the same total money, a lumpsum invested early usually ends up larger than the same money spread over years as a SIP.
How the lumpsum calculator works
The formula is plain compound interest, compounded yearly:
- P is the amount invested
- r is the expected annual return
- n is the number of years
With a yearly top-up, each added amount compounds for the years remaining, and this page adds it at the start of each year after the first.
The rule of 72
Divide 72 by your expected return to get the years it takes money to double. At 12%, money doubles every six years, so ₹5 lakh becomes ₹10 lakh, then ₹20 lakh, then ₹40 lakh over 18 years. At 7%, the kind of return a fixed deposit gives, doubling takes over ten years. The gap between those two paths is the entire case for equity over long periods.
Lumpsum vs SIP: which should you choose?
If the money is already in hand and your horizon is seven years or more, investing it at once is the higher-expected-return choice. If the idea of investing everything the week before a market fall worries you, a middle path is an STP: park the lumpsum in a liquid fund and transfer a fixed amount into equity every month over six to twelve months. You give up a little expected return for a lot of peace of mind.
Why the after-inflation number matters
₹10 lakh today and ₹10 lakh in 2040 are different amounts. At 6% inflation, prices roughly double every twelve years. Turn on the inflation toggle to see what your corpus buys in today's rupees. This is the number to plan a goal around.
How lumpsum returns are taxed
Equity fund units held longer than 12 months are long-term capital gains, taxed at 12.5% on gains above ₹1.25 lakh in a financial year; under 12 months, 20%. Debt funds bought after April 2023 are taxed at your slab rate. Rates change with each Budget, so confirm the current year's rules before redeeming.
Common questions
Is it a bad idea to invest a lumpsum when the market is high?
Nobody can tell whether today's high is tomorrow's low. Over ten years or more, the entry point matters far less than staying invested. If it bothers you, stagger the entry over six to twelve months with an STP.
What return should I assume?
12% is a common planning figure for diversified equity funds, 7% for debt or fixed deposits. Use a lower figure if you want a conservative plan. Falling short of an optimistic assumption hurts; beating a cautious one is a pleasant surprise.
Can I add a SIP on top of a lumpsum?
Yes, and it is the most common pattern: invest what you have now, then add a monthly SIP. Use the yearly top-up field here for annual additions, or the SIP calculator for monthly ones.