Lumpsum is a large sum of money that is paid in one single go instead of small installment every month over time. Usually Lumpsum investments are undertaken by investor who are interested to invest a big amount for a time long period in a mutual funds.
How our Lumpsum calculator works ?
It is the investment that you want to do at one-time. This is the amount that you will be investing from starting of investment till the end of your investing years
Expected Interest Rate
This is the percentage return per year at which you want to invest your amount for decided time duration
The duration in years for which you want to invest
This is your total investment till the end of your investing years
This is the interest you will have by the end of invetment years
This is the total amount you will receive which is sum of your total investment and the interest you will be gained
How to calculate interest on Lumpsum investment ?
Formula to calculate interest for a Lumpsum investment
A = P (1+r/n)^nt
where, A stands for future value, P stands for present value or principal amount, r stands for interest rate, t stands for number of years the money is deposited for and n is the number of periods the interest is compounded each year.
What is the difference between Lumpsum and SIP?
A Lumpsum investment is a one-time investment in a selected scheme for a specified time duration. SIP is a systematic investment wherein a smaller amount is invested in a selected scheme every month for a specified time duration.