How this calculator works
A lumpsum investment compounds using a simpler formula than a SIP, since the entire amount is invested on day one:
FV = P × (1 + r)n
Where P is the amount invested, r is the annual return rate, and n is the number of years. Every rupee gets the full benefit of compounding for the entire time horizon, unlike a SIP where later contributions have less time to grow.
FAQs
Lumpsum vs SIP — which is better?
If you already have the full amount available, a lumpsum invested today has more time to compound than spreading it out via SIP. If you're earning the money over time, a SIP is the practical (and only) option.
Should I invest a bonus as a lumpsum?
Often yes, for long-term goals — though some investors split a large lumpsum across a few months to reduce the risk of investing everything right before a market dip.