Calculators

Lumpsum Calculator

Financial tools like online calculators are crucial for making smart investment decisions. The lumpsum calculator, which helps you understand the potential returns from a large upfront investment, is one such tool. If you want to make a one-time investment in any asset or scheme like mutual funds, direct equity, gold or even real estate, the lumpsum investment calculator can be an essential part of your investment planning.

Lumpsum Calculator

Lumpsum Amount (₹) Value of your investment today. Higher the investment amount, higher the absolute returns you can expect

Rate of Interest (% p.a.) Annual returns that you are expecting on your investments. Depends on the category of mutual fund you are investing in. E.g. You can expect 17%-18% returns on Small Cap funds, 15%-16% returns on Mid Cap funds and 12%-15% returns on Large Cap funds in the long run

Time period (In years) No. of years you wish to invest for. Higher your investment period, higher the returns due to compounding effect

Reset Calculator info logo

Total amount after 5 years

₹ 0

Total Invested

-

Total Interest

-

What is a Lumpsum Investment?

A lumpsum investment is any amount of money that is invested in a scheme or asset upfront. It is a one-time exercise that does not require periodic or disciplined investments. For instance, if you have received a bonus of Rs. 1 lakh, you can invest this sum entirely in a mutual fund scheme of your choice. This is considered a lumpsum investment.

Before you invest any sum upfront, it is a good idea to use a lumpsum calculator to understand how your money may grow over the investment tenure. A lumpsum return calculator uses the inputs you provide to compute your potential earnings or profits.

How Can a Lumpsum Calculator Benefit You?

Whenever you plan to make any investment, it is essential to have a clear idea of how your capital may grow during the investment period. This will give you insights into how much money you may have at the end of the tenure. You can use this information to decide if the corpus created will be sufficient to meet different financial goals.

A lumpsum calculator helps you estimate the potential returns from a lumpsum investment. The calculator only uses three essential details — namely, the investment amount, the investment duration and the estimated or expected rate of returns. With these metrics, the lumpsum returns calculator evaluates the returns you can expect at the end of the investment tenure.

How to Calculate the Returns on a Lumpsum Investment?

You can calculate how much your lumpsum investment will grow using the mathematical formula shown here

A = P (1 + r/n)nt

Here,

  • The FD calculator allows you to quickly and accurately compute the maturity amount of your fixed deposit based on the principal amount, interest rate, and tenure.
  • The tool helps you save time by eliminating the need to calculate returns manually. It also helps you avoid calculation errors and ensures accurate financial planning.
  • Since the term deposit calculator is free to use, you can adjust the values and create different investment scenarios. You can then compare them with one another and choose the scenario that aligns with your requirements.

Let us consider a hypothetical example to understand how to calculate these returns. Say you invest Rs. 5 lakhs in a mutual fund scheme today and expect to earn returns at 12% from the fund. Your total corpus at the end of 5 years can be computed as shown here:

Corpus Amount

= P (1 + r/n)nt

= Rs. 5,00,000 × (1 + 0.12/1)1 × 5

= Rs. 5,00,000 × (1.12)5

= Rs. 5,00,000 × 1.762342

= Rs. 8,81,171

This manual calculation can get tedious and inaccurate for most people. It is also time-consuming and difficult to manually calculate the potential returns for different investment scenarios. A lumpsum mutual fund calculator, however, makes the task quicker and more efficient at no extra cost.

How to Use the Research 360 Lumpsum Calculator?

Using the lumpsum calculator on the Motilal Oswal Research 360 platform is easy for beginners and experts alike. To use this online financial planning tool free of charge, simply follow the steps outlined below:

  • Step 1: Enter the lumpsum amount you plan to invest today
  • Step 2: Enter the annual rate of returns you expect to earn on your investment.
  • Step 3: Enter the period of investment in years.
  • Step 4: Submit these details online.

The lumpsum investment calculator will then use the formula explained above to determine how much your capital will grow over time. It will then display, almost instantly, the invested amount, estimated returns and the total value of the corpus.

Benefits of Using the Research 360 Lumpsum Calculator

Whether you are investing for the first time or are an experienced investor, the lumpsum calculator from Motilal Oswal Research 360 gives you many advantages. Its key benefits include the following.

  • Customised Investment Planning

    With this lumpsum calculator, you can adjust your calculations and alter the investment amount and desired tenure based on your specific financial situation. This helps you create a personalised investment plan that aligns with your financial goals and risk tolerance.

  • Greater Financial Clarity

    By showing how your investment could grow over time, the lumpsum return calculator from Research 360 gives you more clarity on your financial trajectory. It helps you understand how different factors like interest rates or investment duration can impact your returns.

  • Easy Investment Comparison

    Using the Research 360 lumpsum calculator, you can compare different investment options by adjusting parameters like interest rates or investment periods. This helps you identify the most profitable investments without relying on the trial-and-error method.

  • Simple and Affordable to Use

    This online financial planning tool is not only simple and easy to use, but it is also available free of cost to everybody. So, you can use the calculator to run as many calculations as needed and make a well-informed decision about where to invest your lumpsum amount.

Lumpsum Calculator FAQs

A lumpsum investment is any large amount of money that is invested in an asset or scheme upfront. A SIP or Systematic Investment Plan involves investing small sums of money periodically in a mutual fund scheme or any other financial product.

Both lumpsum investments and SIPs have distinct advantages. A lumpsum investment is easier and requires no periodic tracking or disciplined investments. A SIP, on the other hand, is more affordable and offers the benefit of rupee cost averaging.

A lumpsum investment may be suitable for you if you have a large amount of money at your disposal and want to invest it gainfully. However, you must ensure that you assess the risk and returns from an asset or scheme before investing in it.

An online lumpsum return calculator is mathematically accurate. However, it relies on the inputs that you provide, which may involve estimates about the return rate. So, the result may differ from the actual returns earned based on market volatility.

You can invest a lumpsum amount upfront in different investment options like mutual funds, gold, direct equity, fixed deposits, real estate and more.

qr-code
login-icon

Take your research to the next level.
Login now to unlock Exclusive Features!

login-icon-1

Take your research to the next level.
Login now to unlock Exclusive Features!

Download Our App On: