Smart Lump Sum Calculator

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₹1,000 ₹1,00,00,000
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1% 30%
Yr
1 Yr 40 Yr

What is Inflation Adjusted Lump Sum Calculation?

Inflation Adjusted Lump Sum helps you estimate the real value of your investment returns after accounting for inflation. When you enable this option, the calculator subtracts the inflation rate from your expected return rate, showing you the actual growth of your money in today's terms. Why is this important? Inflation reduces the purchasing power of your returns over time. By adjusting for inflation, you get a more realistic picture of how much your lump sum investments will be worth in the future. Example: If your lump sum grows at 12% per year and inflation is 6%, your real return is only 6% per year.

SIP vs Lump Sum

Feature SIP Lump Sum
Investment Style Regular, small amounts One-time, large amount
Market Timing Risk Low (averaged out) High
Best For Salaried, new investors Those with large surplus
Compounding Monthly From day one
Volatility Handling Reduces impact of market ups & downs High risk if invested at market peak
Discipline Promotes regular saving Requires large sum & timing
Example (10 yrs, 12% p.a.) ₹10,000/month → ₹23.2 Lakhs ₹12,00,000 once → ₹37.2 Lakhs
* SIP is safer for volatile markets, Lump Sum can give higher returns if timed well.

What is Lump Sum?

Lump Sum investment is a one-time investment of a large amount in mutual funds. It helps you grow your wealth by harnessing the power of compounding from day one.

  • Invest a large amount at once
  • Benefit from compounding from the start
  • Potential for higher returns if timed well
  • Best for those with surplus funds

How Lump Sum Works

Lump sum investment allows you to invest a large amount at once in mutual funds. The invested money earns compound interest over time.

We use the compound interest formula for Lump Sum:

FV = P × (1 + r)n