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Lumpsum Calculator

₹500 ₹2,00,000
5% 20%
1 30

Amount Invested Vs Return

  • Invested
  • Maturity Value

Total Value

Interest Earned

Tip For You

Increasing Investment percentage annually helps to achieve targets faster. 10% is suggested.


Lumpsum and SIP are mutual fund investment options that allow investors to park accumulated funds and earn good returns. In a lump sum mutual fund investment, investors invest a substantial amount of money in the chosen scheme. With the help of a mutual fund lumpsum calculator, investors can easily calculate potential returns from investment.

Here, we will discuss the lumpsum calculator, its features, benefits, and how investors can make the most of it to chalk out a financial plan.

What is a lump sum calculator?

A lumpsum investment calculator helps in estimating the potential returns that an investor can fetch from a lumpsum investment. All it requires is for investors to fill in the necessary details like the amount to be invested, the expected rate of interest and the time period. The calculator then computes approximate returns or maturity value as per the input details.

How to use Fisdom lumpsum calculator?

Fisdom’s lumpsum calculator is an automated online tool that lets investors calculate an approximate value of returns from a lumpsum mutual fund or any other investment. This automated tool provides results within a matter of a few seconds.

How does a lumpsum calculator work?

To use a lumpsum calculator, investors should know the

  1. Lumpsum investment amount,
  2. Investment duration
  3. Expected return percentage (can be estimated using historical performance of the selected scheme).

With these inputs, the calculator will calculate the total value of an investment at the end of the investment duration. Apart from this, it also tells investors the amount of interest earned on the investment.

After providing the required details, the calculator gives an estimation of total investment, total value at maturity, and interest earnings.

How does a mutual fund lumpsum calculator help you?

Any investor would like to know the estimated returns on an investment. An investor who wishes to make a lump sum investment can evaluate whether a chosen mutual fund scheme will meet his/her financial goals at the end of the investment tenure. Here are some of the benefits of a lump sum calculator:

  1. It calculates the estimated return on investment for the investment tenure. For this, an investor must provide details like investment amount, expected return percentage, and tenure/period of investment to get an approximation of returns.
  2. With the help of the calculator, investors can plan and manage their investment portfolio. Depending on the target returns v/s the returns calculated by the lumpsum calculator, an investor can make an investment decision.
  3. A lumpsum calculator helps to save time in comparison to the manual calculation efforts that would otherwise be required. It also helps to avoid any possible human errors.
  4. The lumpsum calculator is very easy to use and convenient. Any investor, whether new or seasoned, can use a lump sum investment calculator with utmost ease and for free.
  5. Since mutual fund investments are subject to market risks, it is important to note that predicting exact returns on investment is not possible even when using the lumpsum calculator.

What is the formula for calculating lumpsum mutual fund investment returns?

The value of a lump sum investment can differ according to market performance of the scheme selected. The lumpsum calculator uses a standard formula for estimating returns.

The formula used by the calculator is:

A = P (1 + r/n) ^ nt

A = estimated return
P = present value of the invested amount
r = estimated rate of return(in %)
t = total duration of investment
n = number of times interest is compounded in a year

Let us understand this formula implementation with the help of an example. Assume that Mr. Rahul wants to invest Rs. 50,000 in a mutual fund scheme for 7 years and expects an average return of 12% annually. Assuming that the interest is compounded annually, the calculation for lumpsum investment returns is:

A = Rs. 50,000 {(1+12%)^7} = Rs. 1,10,535

How is SIP different from lumpsum investment?

For investors who want to know how SIP and lumpsum mutual fund investment options are different, here is a table that highlights the differentiating points:

Frequency of investmentOne-timeRegular (fixed or variable)
Investment tenureDepends on individual investment goals and market fluctuationsDepends on individual investment goals. This option is generally immune to market scenarios
Cost of investmentHigh since it is one-time and a large amount is investedLess (investors can invest as little as Rs 500)
Rupee cost averagingNo benefit of rupee cost averagingSIPs provide the benefit of rupee cost averaging since mutual fund units can be purchased at different market conditions


Investors who want to try out lumpsum investment but are unsure about the risks can even begin with a smaller amount. They can increase the investment amount over time once they gain more comfort with the investment process. Lumpsum investment requires consideration of aspects like current earnings, financial stability, risk appetite, investment goals, and investment time horizon.


Which is better, SIP or lumpsum investment?

With lumpsum investment, one doesn’t have to worry about monitoring the investment every month. A lump sum investment could result in initial financial burden for the investor, which is not the case with SIP investment. An SIP involves smaller portions invested periodically and therefore it can be easier when compared to a lump sum investment.

How to make lumpsum mutual fund investment?

To make a lumpsum investment in mutual funds, investors can download the Finity app on their smartphone. This app offers a range of mutual fund options across varying risk, return, and investment time horizons.

When should I make a lumpsum investment?

An investor must ideally consider a lumpsum investment from a long-term perspective. Therefore, when you are ready to park your funds for a longer duration, you can explore this option.

Can I add a lump sum amount in SIP?

Yes, you can add a lumpsum amount to an ongoing SIP if the scheme permits.

What is the minimum lumpsum amount in a mutual fund?

Most schemes require a minimum investment of Rs. 5,000 if making a lumpsum investment. Post the initial investment, one can add in multiples of Rs. 1,000 if required.

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