Lumpsum Calculator
What will a one-time investment grow to?
Maturity value
₹0
before tax
Inflation-adjusted value
₹0
in today's money, pre-tax
Post-tax maturity
₹0
after tax on gains
Lumpsum vs SIP
A lumpsum puts every rupee to work immediately, so it beats an equivalent SIP whenever markets rise steadily. It also carries full timing risk — invest the day before a 30% fall and you carry that fall on the entire amount, where a SIP would have bought through it.
The inflation number matters more than the return
At 6% inflation, money halves in purchasing power roughly every twelve years. A 12% nominal return is really about 5.7% real. Always look at the inflation-adjusted figure before deciding a number is "enough".
Tax depends on what you hold
Equity funds held over a year pay 12.5% on gains beyond ₹1.25 lakh a year. Debt funds and fixed deposits are taxed at your slab rate. The same pre-tax return can leave very different amounts in your hand.
Illustration only, assuming a constant annual return, which no market delivers. Equity returns are not guaranteed and do not arrive in a straight line. Tax defaults to the 12.5% long-term capital gains rate for equity; debt funds and fixed deposits are taxed at your slab rate instead. Rates and thresholds are set by the Finance Act and can change. Not investment advice.
Frequently asked questions
What is CAGR and how is it different from average return?
CAGR (Compound Annual Growth Rate) is the single steady annual rate that would take your starting value to your ending value over the period, accounting for compounding. A simple average of yearly returns can be misleading -- a 50% gain followed by a 50% loss averages to 0%, but you'd actually be down 25%. CAGR reflects what actually happened to your money.Read more: Your Retirement Number Ignores the One Cost Growing Twice as Fast
Is SIP better than a lump sum investment?
Neither is universally better -- a SIP (spreading investment across regular installments) reduces the risk of investing everything right before a downturn and suits regular income, while a lump sum captures more time in the market if invested when prices are relatively low. For most people investing from salary, SIP is the practical default; a lump sum windfall is often still better invested promptly rather than staggered indefinitely.Read more: Your “Financial Advisor” Is Probably Just a Salesperson on Commission
How does compounding actually grow money over time?
Compounding means your returns start earning their own returns, not just your original investment. The effect is small in early years and accelerates sharply later -- which is why starting early matters more than almost any other single investing decision, even more than the exact return rate.Read more: SEBI’s SCORES Portal Promises a 21-Day Fix — Here’s What That Timeline Doesn’t Tell You
What's a realistic long-term return to assume for equity investments?
Long-term equity returns vary a great deal by market and period, and past performance never guarantees future results. Most long-term financial plans use a conservative, inflation-aware assumption rather than recent bull-market numbers -- this calculator lets you test your own assumption and see how sensitive the outcome is to it.Read more: Your Retirement Number Ignores the One Cost Growing Twice as Fast
Estimates only, not financial advice. See our Disclaimer.
