LumpSum Calculator 2024

A Lump Sum Calculator helps you estimate the future value of your lump sum investments. It provides the return based on the amount invested, rate of expected returns, and the investment tenure

What is a Lump Sum Investment?

Lump Sum Investment is a one-time investment made to a financial product, typically mutual funds or fixed deposits, instead of making periodic payments. It is ideal for those who have large income and want to invest it all for long-term growth.

Who Can Invest in Lump Sum?

• Lump Sum is a common mode of investing for HNIs and big ticket investors with a high risk tolerance. For others, you may even consider lump sum investment for a windfall such as inheritance, bonus or a gift. It is generally suitable for investors with a high risk tolerance as the entire amount invested is exposed to market volatility
• Retirees or individuals nearing retirement may have a lump sum available, such people can invest a portion of their income into mutual funds as Lump sum for good returns in the future.
• It is not suitable for short term investment purposes. If you are not comfortable investing such a large amount at one go, you may consider investing in Systematic Investment Plan (SIP) which staggers amount over a period of time

What is a Lump Sum Investment Calculator?

A Lump Sum Calculator helps you estimate the future value of your lump sum investments. It provides the return based on the amount invested, rate of expected returns, and the investment tenure. It is a handy tool that everyone can use to know the future value of their investments and it simplifies decision-making for investors by providing the clear picture of the returns

Benefits of Lump Sum Investment Calculator

• Accurate Projections: It helps calculate the projected value of your long-term investment
• Time-Saving: It Quickly calculates the future value, eliminating the need for manual calculations.
• Easy Comparisons: Helps to compare different investment options by varying the invested amount and tenure
• Informed Decision-Making: Take a well-informed decision after comparing investment returns of different funds
• Manage Finances Better: It helps you manage finances better as you have an idea of the maturity value of your investments

How to use a Lump Sum Calculator?

To use a Lump Sum Calculator, you need to enter the amount that you are planning to invest, enter the expected rate of return, and set the investment duration. The calculator will instantly provide you the future value of your investments.

Formula for calculating lump sum returns

FV = P(1+r)^n 

• FV = Future Value
•  PV = Present Value
• R= Rate of interest
• n = Number of years 

Suppose you are investing a lump sum amount of Rs. 10 lakhs for a tenure of 5 years at an expected return rate of 12%, then your returns are as follows

Invested amount – ₹10,00,000

Est. returns – ₹7,62,342

Future value – ₹17,62,342

FAQ on Lump Sum calculator

1. What factors affect the result of a Lump Sum Calculator?
The prevailing market conditions at the time of maturity play a vital role in affecting the projected returns

2. Can a Lump Sum Calculator predict exact returns?
No, it provides estimates based on expected rates of return which may vary with the market conditions

3. Is a Lump Sum Calculator useful for short-term investments?
You can use it for any term either for short term or long term. Generally, a lump sum investment provides better returns only on a longer investment horizon

4. Is the Fincover Lump Sum Calculator easy to use

Being an online marketplace, we are very particular that customer gets premium finance experience with little hassles. Hence, we made the calculator so simple that it would provide the returns based on few inputs

5. Does the Lump Sum Calculator consider tax deductions?
No, tax implications are not taken into consideration, You will have to separately calculate them