| Year | Total Invested | Year-End Value |
|---|---|---|
| 1 | 100000 | 112000 |
| 2 | 100000 | 125440 |
| 3 | 100000 | 140493 |
| 4 | 100000 | 157352 |
| 5 | 100000 | 176234 |
Lumpsum investment is like investing your money once in a mutual fund or in a stock, so that your money grows gradually over a certain time period. It is not like Systematic Investment Plan (SIP), because there you invest in a routine, but here you invest in a lumpsum.
Enter your investment data like Principal, interest per annum, and the duration. Then automatically the calculation happens in our calculator and displays the output data within milliseconds. Our Utifin's calculator is one of the best efficient financial calculators in the market.
If you invest a principal amount of 1 lakh rupees for 8 years at 12 percent annual return, you get the return of Rs. 1,47,596.
Below we have an easy classification for you. Let's assume:
Principal amount (Rs.) : 1,00,000
Duration (Yrs) : 8
Return per annum (%) : 12
Finally you get,
Principal amount (Rs.) : 1,00,000
Estimated Return (Rs.) : 1,47,596
Total amount : 2,47,596
SIP is Systematic Investment Plan where you invest your money consistently over a period of time. When you invest every time, you pay a certain amount for brokerage and tax, that many people do not consider at the return stage.
In Lumpsum you invest one single time, then your money grows with compounding over time, and finally a decent wealth is generated for the future. Here only once brokerage and taxes are paid. If you sell your assets then you are taxed here. Instead of selling, just compound your money to make more money. That is what investors do.
A = Final Amount / Total Value (Maturity Value)
P = Principal Amount (One-time Investment)
r = Annual Rate of Return
n = Number of times interest is compounded in a year
t = Investment Duration (in years)
Explore other tools that might be useful for you.