Boneyard Tools

Lumpsum Calculator

See what a single, one-time investment could grow to. Enter the amount, an expected annual return and how many years you plan to stay invested to get the projected maturity value.

How to use the lumpsum calculator

  1. Enter the one-time amount you plan to invest.
  2. Set an expected annual return and the number of years.
  3. Review the future value, amount invested and estimated gains.

Examples

100,000 at 10% for 10 years

principal 100000, return 10%, years 10
future value about 259,374 with around 159,374 in gains

Frequently asked questions

What is the difference between lumpsum and SIP?

A lumpsum is a single one-time investment, while a SIP spreads the same money across regular monthly contributions. Lumpsum puts the full amount to work immediately; a SIP averages your entry price over time.

How are the returns compounded?

This calculator uses annual compounding. Each year the return is applied to the running balance, so you earn returns on prior returns. After n years the value is principal times (1 plus rate) raised to the power n.

Is the expected return guaranteed?

No. The return rate is an assumption you provide for illustration. Actual market returns vary year to year, so treat the maturity value as an estimate rather than a promise.

What return rate should I assume?

Use a realistic long-term figure for your asset type. Many people model equity at around 10 to 12 percent and debt or fixed income lower. Lower assumptions give a more conservative estimate.

Does this account for inflation, taxes or fees?

Not directly. The result is a nominal projection before inflation, taxes and fund or platform charges, all of which reduce your real take-home return.

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