What is a Lumpsum Calculator?
A Lumpsum Calculator estimates the future value of a one-time investment based on your investment horizon and expected annual returns. This tool can also display inflation-adjusted results to show the real purchasing power of your corpus.
How Does the Lumpsum Calculator Work?
The future value (FV) is computed via monthly compounding:
FV = P × (1 + r/12)n
Where P is the initial amount, r the expected annual return, and n the number of months. If inflation is toggled on, the nominal corpus is deflated to show “real” values.
Benefits of Using a Lumpsum Calculator
- Quickly evaluate growth of a one-time investment
- Compare nominal vs inflation-adjusted outcomes
- Plan long-term goals with realistic, real-value estimates
Frequently Asked Questions (FAQs)
Is the inflation toggle required?
No. Keep it off to view nominal results; turn it on to see real values using your inflation assumption.
What return rate should I use?
For equity-oriented funds, long-term expectations often range from 10–14% annually. Be conservative.