Lumpsum Calculator
Calculate returns on a one-time (lumpsum) mutual fund investment using CAGR.
Maturity Value
₹3,10,585
10 years @ 12% CAGR
Amount Invested
₹1,00,000
Est. Returns
₹2,10,585
Wealth Growth
How Lumpsum Returns Are Calculated (CAGR)
Compound Interest Formula
A = P × (1 + r)ⁿ- A = Maturity value (future value)
- P = Principal (initial investment)
- r = Annual rate of return ÷ 100 (e.g., 12% → 0.12)
- n = Number of years
Lumpsum investments grow through annual compounding — each year's gains are added to the principal and earn returns in subsequent years. This is the same formula as CAGR (Compound Annual Growth Rate), which mutual funds use to report long-term performance.
💡 CAGR example
₹1 lakh invested at 12% CAGR for 10 years becomes ₹3.1 lakh. At 15% CAGR it becomes ₹4.05 lakh. Even a 3% higher return nearly doubles the final amount.
📊 Lumpsum vs SIP
Lumpsum works best when markets are low (you deploy all capital at a good price). SIP works better for regular income earners — it averages out entry cost via rupee-cost averaging.