Lumpsum Investment Calculator
See what a one-time investment grows to with annual compounding.
About the Lumpsum Investment Calculator
A lumpsum investment is a single one-time deposit — say a bonus, an inheritance, or maturity proceeds from another instrument — invested and left to compound. The AlarmDaddy Lumpsum Calculator projects the maturity value of any one-time investment given an expected annual return and a holding period.
Enter the amount you are investing, the expected annual return, and the number of years. The calculator applies annual compounding to show the maturity value and the total gain. Lumpsum works best when you have idle capital and a long horizon; if you are investing from monthly income instead, use the SIP Calculator. Many investors compare both: investing a lumpsum today versus spreading it as a SIP over the next year.
How to use this calculator
- 1Enter the one-time investment amount.
- 2Enter the expected annual return.
- 3Enter the holding period in years.
- 4Read the maturity value and total gain.
The formula
Where P is the lumpsum principal, r is the annual rate of return (as a decimal), and n is the number of years. This is straightforward annual compound interest.