Lump Sum Calculator

A lump sum investment means investing a large amount of money all at once, rather than spreading it over time. It's common when you receive a windfall — like a bonus, inheritance, or maturity proceeds — and want to put it to work immediately.

In a consistently rising market, lump sum typically outperforms SIP because the entire capital is invested from day one and compounds for the full duration. SIP reduces timing risk through rupee cost averaging, making it better suited for volatile markets or investors without a large upfront sum.

For equity mutual funds in India, a 10–12% CAGR is a reasonable long-term estimate. Debt funds typically return 6–8%. Fixed deposits offer 6–7.5%. Use a conservative rate to avoid overestimating your corpus — it's better to be pleasantly surprised than disappointed.

The SIP comparison divides your lump sum amount by the total number of months (duration × 12) to get an equivalent monthly SIP amount. Both scenarios invest the same total capital — the difference is timing. This helps you understand the opportunity cost of investing gradually versus all at once.

No. This calculator shows pre-tax returns. Actual post-tax returns depend on the investment type and holding period. For equity mutual funds held over 1 year, long-term capital gains above ₹1 lakh are taxed at 10%. Consult a financial advisor for tax-adjusted projections.