Lumpsum Calculator
What a one-time investment grows to at a steady return, in today's rupees and after tax, and what the same amount actually returned in the Nifty 50.
₹1 lakh invested once at a 12% annual return grows to about ₹3,10,585 in 10 years: FV = P × (1 + r)^n. The calculator shows the value year by year, in today's rupees and after tax, and what the same amount really returned in the Nifty 50, Sensex or Nifty 500 over the most recent period of that length.
A lumpsum investment is a single purchase, for example a bonus or the proceeds of a sale put into a mutual fund at once. Its future value depends only on the return and the time: FV = P × (1 + r)n.
₹1 lakh at different returns
| Period | At 12% | At 10% | At 14% |
|---|---|---|---|
| 5 years | ₹1,76,234 | ₹1,61,051 | ₹1,92,541 |
| 10 years | ₹3,10,585 | ₹2,59,374 | ₹3,70,722 |
| 15 years | ₹5,47,357 | ₹4,17,725 | ₹7,13,794 |
| 20 years | ₹9,64,629 | ₹6,72,750 | ₹13,74,349 |
| 25 years | ₹17,00,006 | ₹10,83,471 | ₹26,46,192 |
At 12% money doubles roughly every 6 years (the rule of 72: 72 ÷ 12). Two extra percentage points of return over 25 years make a difference of lakhs on every lakh invested, which is why costs and tax matter.
Lumpsum or SIP?
Invested at once at 12%, ₹1 lakh becomes ₹3,10,585 in 10 years. Spread over 120 monthly instalments of ₹833 at the same return, it becomes ₹1,86,697, because most of the money is invested for less time. When markets rise, investing at once wins; when they fall soon after, a SIP wins. Over long periods markets rise more often than they fall, so a lump sum has usually come out ahead, but with a bigger risk of bad timing.
A middle way is to park the lump sum in a liquid or arbitrage fund and move it into equity over 6-12 months with a systematic transfer plan (STP).
Tax
Equity mutual funds (and stocks) held over 12 months: long-term gains above ₹1.25 lakh in a financial year are taxed at 12.5%; held 12 months or less: 20%. Health and education cess of 4% applies on top. Debt funds bought on or after 1 April 2023 are taxed at your slab rate however long you hold them.
Key takeaways
- ₹1 lakh at 12% a year grows to about ₹3,10,585 in 10 years.
- FV = P × (1 + r)^n; at 12% money doubles in about 6 years.
- A lump sum has usually beaten a SIP of the same total, with more timing risk.
Frequently asked questions
How is lumpsum return calculated?
Future value = P × (1 + r)^n, with r the annual return and n the years. For returns already earned, the annualised rate is the CAGR: (final ÷ initial)^(1/n) − 1; use the CAGR calculator.
What will ₹1 lakh become in 10 years?
At 12% a year about ₹3,10,585; at 10% about ₹2,59,374; at 8% about ₹2,15,892.
Is lumpsum better than SIP?
If the money is available now, a lump sum has usually ended higher, because it is invested for longer. A SIP reduces the risk of investing everything just before a fall. See the comparison above.
How is a lumpsum mutual fund investment taxed?
Equity mutual funds (and stocks) held over 12 months: long-term gains above ₹1.25 lakh in a financial year are taxed at 12.5%; held 12 months or less: 20%. Health and education cess of 4% applies on top. Debt funds bought on or after 1 April 2023 are taxed at your slab rate however long you hold them.
What is the rule of 72?
72 divided by the annual return gives the approximate years to double: 6 years at 12%, 9 at 8%.