About this calculator
A lumpsum is money invested once and left to grow. Compounding means each year’s gain also earns a gain the next year.
How it is calculated
- Value = amount × (1 + yearly rate)^years.
Assumptions. A constant yearly return, compounded once a year, before tax and charges.
Questions
How is this different from a SIP?
A SIP spreads money over many months. A lumpsum goes in on day one, so it has more time to compound.
Is this exact?
It is a standard formula using the numbers you enter. Your bank, fund or lender may round differently or use different dates, so treat it as a close estimate and check the final figure with them.