Lumpsum Investment Calculator
Find out how a one-time investment grows over time — compare lumpsum vs SIP, understand inflation impact, and plan goal-based investing with real numbers.
Lumpsum vs SIP — Which Wins?
The honest answer: it depends on timing. Lumpsum wins when deployed at market lows (buy cheap, all capital compounds from day one). SIP wins when deployed at market peaks (rupee-cost averaging brings down average cost). Since no one reliably times markets, research consistently shows SIP matches or beats lumpsum for most investors over 10+ year horizons — with far less anxiety.
The ideal strategy in practice: invest large windfalls (bonus, maturity proceeds, inheritance) via Systematic Transfer Plan (STP) — park in a liquid fund, then transfer fixed amounts to equity monthly over 6–12 months. Best of both worlds.
The Rule of 72 — Quick Mental Math for Compounding
Divide 72 by the annual return rate to get the approximate years to double your money:
| Return Rate | Doubles Every | ₹1 lakh → after 20 yrs |
|---|---|---|
| 6% (FD/debt) | 12 years | ₹3.2 lakh |
| 10% (balanced) | 7.2 years | ₹6.7 lakh |
| 12% (large cap) | 6 years | ₹9.6 lakh |
| 15% (mid cap) | 4.8 years | ₹16.4 lakh |
Inflation — The Silent Wealth Destroyer
At India's average inflation of 5–6%, ₹10 lakh today buys what ₹5.5 lakh buys in 10 years. This is why real return = nominal return minus inflation rate. A 12% equity return with 6% inflation gives a real return of ~5.7% (not simply 6%, due to compounding). Your lumpsum must beat inflation to actually grow wealth; FDs at 6.5–7% barely break even after inflation and tax.