Lump Sum Investment Calculator
Future Value: ₹100,000
Total Gain: ₹0
Lump Sum Calculator
Concept:
The Lump Sum Calculator projects the future value of a one-time investment over a given period. It’s useful to estimate how much a bonus, inheritance, or windfall can grow if invested.
The Lump Sum Calculator projects the future value of a one-time investment over a given period. It’s useful to estimate how much a bonus, inheritance, or windfall can grow if invested.
Formula
FV = PV * (1 + r)^n
FV = PV * (1 + r)^n
Where
- FV = Future Value (investment worth after n years)
- PV = Present Value (initial investment amount)
- r = Annual rate of return (in decimal, e.g., 12% → 0.12)
- n = Number of years
Step-by-Step Manual Formulas
Step 1. Convert annual return to decimal:
r = Annual_Return / 100
Step 2. Calculate growth factor:
Growth_Factor = (1 + r)^n
Step 3. Compute future value:
FV = PV * Growth_Factor
Theory in Simple Words
- A lump sum investment grows through compounding — returns build on both the
original investment and accumulated gains. - The longer the duration (n), the larger the growth due to compounding.
- Ideal for planning long-term wealth creation using one-time amounts like bonuses,
property sales, or inheritances.