A Lumpsum of ₹5,00,000 for 15 years at 12% grows to ₹27.37 L.
Future Value = P × (1 + r)^n, where P = amount invested today, r = annual return rate, n = years
| Input | Value |
|---|---|
| Investment Amount | ₹5,00,000 |
| Expected Annual Return | 12% |
| Investment Period | 15 yr |
| Maturity Value | ₹27,36,783 |
| Total Gains | ₹22,36,783 |
| Wealth Multiplier | 5.47× |
| CAGR | 12% |
| Doubles in | 6.1 yr |
How lumpsum compounding works
A lumpsum is compoundingEarning returns on your returns — growth that accelerates over time. in its purest form: one principal, growing on itself. The calculator applies your expected annual return for the full tenure — and the result curve bends upward because each year’s growth is earned on all previous years’ growth too.
Lumpsum or SIP — which gives higher returns?
When markets rise over the period (the historical majority of the time), a lumpsum invested immediately beats spreading the same money out — more rupees compound for longer. SIP wins in falling-then-recovering markets and, more importantly, is the natural shape for monthly income. For a windfall, the honest middle path is an STP over 6-12 months.
Where should a lumpsum wait while being deployed?
In a liquid or money-market fund earning ~6-7%, with a systematic transfer plan (STP) moving a fixed slice into equity monthly. Leaving it in a savings account costs ~3-4% a year; leaving it in your trading account “waiting for a dip” usually costs far more.