Investment Amount

(Up to 1 Crore)

Expected Return Rate (p.a)

Investment Period (in Years)

(1 year - 30 years)
Interest Rate (%)6 % Duration (Years) 3Invested Amount100000Wealth Gained19102Total Wealth119102


If you have a lump sum amount of money and don't have any investment plan to invest the money, then it is advisable to invest your money in a lump sum. If your period of investment lies for a longer period, say for more than 5 years, then it would be better to deposit your money in a lump sum. You can also go to the stock market for your investment and get the benefit of compounding. Compounding means reinvesting the income that you earn from one year as capital in your business again so as to grow faster. This makes the amount of revenue generated huge every year.

The idea of investing in a lump sum can be quite attractive. After all, there are tax benefits to choosing this investment method and you are able to invest your money for a longer period of time. However, it is not easy for an investor to make all these decisions in one big swoop. Because purchasing through a lump sum takes preparation, many investors choose to break up the purchases over a period of time or purchase shares from different sources. Our purpose is to explore the important aspects related to lump sum investments and help you make the best decision when it comes to calculating the right returns and investment rates through a Lumpsum calculator. So let's start!

What is Lumpsum Investment?

A lump sum investment is an investment strategy in which an investor deposits the entire amount of money he has with him in one go. Lump-sum investments are made when you have a substantial amount of money and are planning to invest it in mutual funds. Mutual fund investors usually make lump-sum investments at various points with the intention of investing in a large number of units at one time. Comparisons are then made to calculate the returns that they got over a period of time by investing in mutual funds. You'll come across hundreds of types of investment plans in this role. When you start investing, ask yourself whether you'd prefer to make lump-sum investments or if you'd rather choose your investments carefully over time so as to drip-feed some money into them each month or year.

Lump-sum investing is a common mode of investment for HNIs and big-ticket investors. An investor who has a high-risk tolerance may consider making lump-sum mutual fund investments. Lump sum investing can be an excellent way of investing in the long term. Basically, you make one single investment instead of dividing your money into multiple investments over time.

What is a Lumpsum Calculator?

A lump sum calculator is a very handy tool when considering investing. It allows you to quickly see the long-term result of an investment and how much wealth you gain in particular situations. A common example is when you have access to a relatively large sum of money (for example, a monetary gift from a generous relative), or the divorce settlement and need to determine the optimal way to invest it. A lumpsum calculator assumes that the owner of that investment has invested in the market years ago, and will have to wait for many years before he sees his final wealth. It also assumes that the investor will only harvest at a certain age, and hence shows the expected number at that required age.

Benefits of using a Lumpsum Calculator

  • Determine Your Returns:

    Lumpsum calculator can help you estimate the future value of your lump sum investment and decide whether to accept or reject a certain proposal. The application 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 of investment to reach an accurate approximation.

  • Right Planning:

    No one likes the stress of worrying about their financial situation. However, there are some things that you can do to make planning for your future a whole lot easier. One of them is to use a lump sum calculator, preferably one that also helps you figure out how much you could reasonably expect as a monthly income after you're done investing your lump sum.

  • Save Your Time and Efforts:

    Do you ever wish you didn't have to spend so much time performing manual lump sum calculations? If so, then you need to consider using a lump sum calculator for this purpose. Not only will it save you the trouble of having to manually calculate the results of these calculations, but it will also likely cut down the potential for human errors.

  • Convenient:

    When you want to calculate your return on investment, a lump sum calculator comes in handy. This is actually quite a convenient and free-of-cost lump sum calculator that helps you to get accurate returns as per business type. Statistics reveal that the lump sum investment return calculator provides investors with complete details about their capital regarding investment. Since it is online, you will not even have to purchase an application or software. All that is required of you is to enter your information into the form and get a final result.

How to Use a Lumpsum Calculator?

    Use the Lumpsum Calculator to see how much your lumpsum investment will be worth in the future. To use the calculator, you will need to follow the below-mentioned steps:

  • Enter the Investment Amount
  • Enter the Investment Duration in Years
  • Enter the annual expected rate of return
  • Now the Calculator will show you your return on investment, as well as your wealth gain.
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