Estimate the Future Value of a One-Time Investment
1. Purpose
A lumpsum calculator helps you estimate how much a one-time investment could grow over time, based on an assumed annual return.
This tool is designed for:
- Long-term financial planning
- Goal estimation (retirement, child education, wealth creation)
- Understanding the impact of time and compounding
Results are indicative and not guaranteed.
2. When a Lumpsum Investment Makes Sense
A lumpsum investment is typically suitable when:
- You receive a bonus, inheritance, or surplus cash
- You want to invest a fixed amount at once
- You have a long-term horizon and can tolerate volatility
Lumpsum investing works best when time in the market matters more than timing the market.
3. How the Lumpsum Calculator Works
The calculator uses the compound interest formula:
Future Value = Investment × (1 + r)ⁿ
Where:
- r = expected annual return (decimal)
- n = investment duration in years
Assumptions:
- Annual compounding
- No additional investments or withdrawals
- Taxes are not considered
4. Lumpsum Calculator – Inputs
Investment Amount (₹)
One-time amount you plan to invest
Expected Annual Return (%)
Assumed average annual growth rate
Time Period (Years)
Duration you remain invested
👉 Tip: Use conservative return assumptions (10–12% for equity-oriented investments)
5. Calculator Outputs
Total Invested
Your original investment amount
Estimated Returns
Growth earned over the period
Estimated Value
Final value at the end of the investment term
6. How to Interpret the Results
- Longer time periods have a greater impact than higher returns
- Compounding accelerates growth in later years
- Results are estimates, not predictions
- Actual returns will vary based on market conditions
7. Common Mistakes to Avoid
- Assuming fixed yearly returns
- Using unrealistic return expectations
- Ignoring inflation
- Making investment decisions solely based on calculator output
8. Lumpsum vs SIP – Quick Comparison
Lumpsum
• One-time investment
• Suitable for surplus funds
• Higher timing risk
SIP
• Periodic investment
• Suitable for regular income
• Reduces timing risk
👉 Choose based on your cash flow and risk comfort, not market noise
9. Inflation Reality Check
Money loses purchasing power over time.
Always evaluate:
- Returns after inflation
- Real value of future money, not just nominal numbers
10. Who Should Use This Calculator
Suitable for:
- Long-term investors
- Beginners learning financial planning
- Estimating future value of surplus funds
Not suitable for:
- Short-term trading
- Market timing decisions
- Product selection
11. Disclaimer
This calculator provides illustrative estimates only.
Actual returns may differ significantly.
Samnidhi Insights does not provide investment advice or recommend specific products.
12. Calculator Formula (For Reference)
Future Value = P × (1 + r/100)ⁿ
Where:
- P = Investment amount
- r = Expected annual return
- n = Time period in years
Example:
Investment: ₹1,00,000
Return: 12%
Time: 10 years
Estimated Value: ₹3,10,585 (approx.)