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Lumpsum Calculator

Calculate potential returns from one-time investments with compound interest and see how your money can grow over different time periods.

Lumpsum Investment

Investment Growth

Understanding Lumpsum Investments

A lumpsum investment involves investing a significant amount of money all at once, rather than spreading it out over time. This approach can be advantageous when you have a large amount to invest and believe markets will rise over the long term.

When Lumpsum Works Best:

  • Market Timing: When markets are undervalued or recovering
  • Windfalls: Inheritance, bonuses, or sale of assets
  • Long Horizon: Investments held for 10+ years
  • High Conviction: Strong belief in specific investment
  • Compounding Benefit: Entire amount starts compounding immediately

Lumpsum vs SIP:

  • Lumpsum: Higher potential returns if timed well, higher risk
  • SIP: Lower risk through averaging, potentially lower returns
  • Combination: Many investors use both strategies

💡 Pro Tip for US Investors:

Consider lumpsum investing in tax-advantaged accounts to maximize compounding. For large amounts, dollar-cost averaging over 6-12 months can reduce timing risk while still capturing most of the market's long-term growth.