How this calculator works
A lumpsum investment is a one-time amount invested up front, left to grow through annual compounding at your expected rate of return. Unlike a SIP, there are no further contributions after the initial investment — the entire amount compounds year over year for the full period.
The formula used is: Future Value = Investment × (1 + rate ÷ 100) ^ years. Estimated returns are simply the future value minus your original investment.
For example, a one-time investment of ₹1,00,000 at an assumed 12% annual return, left untouched for 10 years, grows to approximately ₹3,10,585 — an estimated gain of ₹2,10,585.
Lumpsum vs SIP
A lumpsum investment puts all your money to work immediately, so it benefits fully from compounding over the entire period — but it's also more exposed to how markets perform right after you invest. A Systematic Investment Plan (SIP) spreads your investment across many months instead, which averages out your purchase cost over time and reduces the impact of any single bad entry point. Neither approach is universally better; many investors use a mix of both depending on how much capital they have available upfront.
Shunya isn't a financial advisor — but if you're a founder or business owner who also needs help with company registration, GST, or tax filings, our CA team can help.
Talk to a CA →Lumpsum vs SIP — which is better?
It depends on market timing and your risk appetite. A lumpsum invests everything at once, so it does well when markets rise steadily after your entry but is more exposed to a bad entry point. A SIP spreads investment over time, averaging your purchase cost. Neither is universally better — the right choice depends on your situation, the money you have available, and how comfortable you are with market timing risk.
Is this compounded annually?
Yes, this calculator assumes annual compounding — your investment grows by the entered rate once per year, compounding on the previous year's value, over the full investment period.
What return rate should I use?
The rate is an assumption you choose, not a guarantee. Market-linked investments like mutual funds don't promise a fixed return — use a rate that reflects a reasonable, conservative expectation for the type of fund or asset you're considering, and remember actual results can be higher or lower.
This tool is for quick estimation and educational purposes only, not financial advice. Actual investment returns depend on market performance and are never guaranteed. For your specific situation, consult a registered investment or financial advisor.
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