Lumpsum Calculator – Calculate Investment Plan in 2022

Lumpsum Investment Plan Calculator: The mode of investment in which you can invest a large amount of money in any mutual fund scheme at one time instead of staggering the amount over many small investments. Big investors generally use this investment plan and prefer to either invest their money for the long term or the short duration wealth creation strategy.

What is Lumpsum Calculator?

The lumpsum calculator is the calculator that helps you to estimate the returns that will be made through the lump sum MF (mutual fund) investments. It provides you the maturity amount of the present-day investment, given no. of years for which you have made the investment. You just need to write the amount, no. of years for which you wanted the amount to remain invested, and the expected date of the return. You will get the final maturity amount by using this calculator.

How Does This Calculator Help You?

You can use this calculator to check the estimated returns on your investments. Before knowing the benefits of using the lumpsum calculator, you must know the types of return for the lumpsum investment –

  • Rolling Return
  • Point to Point Return
  • Total Return
  • Absolute return
  • Annualized Return
  • Trailing Return

Here are some of the ways in which this calculator helps you:

  • The lumpsum calculator gives you estimated returns for the entire investment period. You can calculate your investments 1 year, 3 years, and 5 year returns using this particular calculator.
  • This provides you the flexibility to change the amount, period, and rate of return & get an estimated return amount. You can also set multiple combinations of the amount you wanted to invest, tenure, rate of return & then you can decide what is the best combination.
  • If you already have made your financial goal then this calculator helps you to find out whether you will be able to meet your goal or not.
  • Lumpsum Calculator is very easy and incredibly convenient to use. Even a layperson can easily use this calculator with relative ease.
  • You will be able to manage your finances in a better way once you already have an estimated idea about your investment.
  • It helps in avoiding errors and also it saves time for the mutual calculation which you will make.

How does Lumpsum Calculator Work?


Lumpsum Amount

The starting amount you want to invest in one time. This one-time starting amount is assumed to invest at the start of the tenure and kept invested until the end.

Time Horizon

The tenure or the duration for which you will be investing your amount.

Expected Annual Returns (in %)

This is the percentage returns per year that you generally expected from your Systematic Investment Plan (SIP) investments. For the partial years, the returns will be calculated on a pro-rata basis. Returns are also considered to be compounding.


Projected Amount

At the end of your investment tenure, this is the total amount you are projected to get (gains + investment).

Planned Investment

The total amount in which you will be investing in the ‘planned investment’.


By the end of the investment tenure, this is the profit (gain) you are expected to have on your investments.

Formula to Calculate Mutual Funds Returns

For computing the estimated returns on the investment, all the lumpsum calculator uses a specific method. It is nothing but the compound interest formula –

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


A – Estimated Return

P – Present Value

R – Rate of Return

N – Number of the compounded interest in a year

T – Duration of the Investments

By using the above formula, you can easily and accurately calculate your mutual fund’s returns.

For example, just imagine you wanted to invest Rs. 15, 00, 000 in a fund with a 12% return for the next 5 years period computing every 6 months.

In this scenario, the estimated return will be –

P – 15, 00, 000

R – 12

N – 2

T – 5-year period

Estimated Return (A) = 15, 00, 000 (1 + 12 / 2) * 2 / 5

A Lumpsum calculator calculates this complex equation instantly and at the end of the 5-year period.  Your estimated return will be Rs. 26, 43, 513.

Advantages & Disadvantages of Lumpsum Investments

Advantages of lumpsum investments:

  • One-time or lump sum investment is more convenient. You only have to invest once and will be free for years rather than worrying about saving every month to invest and remembering installment dates.
  • The financial goal of any investor is to invest for the long term more than 10 years.
  • In mutual funds, investments are usually made in underlying assets. These particular assets give a better return in the long term. The higher will return on maturity if the investment is made earlier.

Disadvantages of lumpsum investments

  • Investing in a lump sum or one-time investment did not bring investment discipline to you. Once some amount is invested by you, you will be relaxed even if there is a chance of saving some more funds & sparing it for regular investments.
  • With regular investments, you can balance out the ups and downs of the market but once you made the lumpsum investment, you will not be able to make most of the market fluctuations.
  • If you invest the lumpsum amount, that particular amount will be locked for the selected locked-in period. In case of any emergencies, you will not be able to use that amount until the lock-in period ends or have a lesser option for managing that fund.


This article is about the “Lumpsum calculator”. In this article, one will be able to know what exactly the lumpsum investment plan is and how to use the lumpsum calculator and formula for calculating the estimated return.

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