Lumpsum Calculator with Inflation
Enter a one-time investment, how long you'll stay invested and the return you expect. You get what it grows to, what that buys in today's rupees, and how long it takes to double. Investing every month instead? Try the SIP calculator.
By Hardik Vegad, founder of WealthGamma · Last updated
Your investment will grow to
₹15.53L
Invest ₹5,00,000 once and leave it for 10 years at 12% a year. In today's money, that's worth ₹8.67L.
Amount you invest
₹5,00,000
Wealth gained
₹10,52,924
Worth in today's money
₹8,67,145
Doubles every
6.1 years
How your lumpsum grows, year by year
- Value
- Value in today's money
- Invested
Year-by-year tableShowHide
| Year | Value | Gains | In today's money |
|---|---|---|---|
| 1 | ₹5,60,000 | ₹60,000 | ₹5,28,302 |
| 2 | ₹6,27,200 | ₹1,27,200 | ₹5,58,206 |
| 3 | ₹7,02,464 | ₹2,02,464 | ₹5,89,802 |
| 4 | ₹7,86,760 | ₹2,86,760 | ₹6,23,187 |
| 5 | ₹8,81,171 | ₹3,81,171 | ₹6,58,462 |
| 6 | ₹9,86,911 | ₹4,86,911 | ₹6,95,734 |
| 7 | ₹11,05,341 | ₹6,05,341 | ₹7,35,115 |
| 8 | ₹12,37,982 | ₹7,37,982 | ₹7,76,725 |
| 9 | ₹13,86,539 | ₹8,86,539 | ₹8,20,691 |
| 10 | ₹15,52,924 | ₹10,52,924 | ₹8,67,145 |
What is a lumpsum investment?
A lumpsum is money you invest in one go: a bonus, a maturing FD, the proceeds of a sale. All of it goes to work from day one, so over a long stretch it grows more than the same amount fed in month by month.
The trade-off is timing. Everything goes in at one price, and a fall soon after hits all of it.
What is the lumpsum formula?
Future value = Amount × (1 + r)years
Value in today's money = Future value ÷ (1 + inflation)years
r is the annual return. Returns compound once a year, the way most lumpsum calculators and fund return figures work.
How much will ₹5 lakh grow in 10 years?
At 12% a year, ₹5 lakh grows to ₹15,52,924 in 10 years. After 6% inflation, that's worth ₹8,67,145 in today's money.
- ₹5,00,000 × 1.1210 = ₹15,52,924
- Gains: ₹10,52,924, about 3.1 times what you put in
- Prices rise 6% a year, so ₹1 today costs ₹1.79 in 10 years
- ₹15,52,924 ÷ 1.79 = ₹8,67,145 in today's money
Give it longer and the gap widens: ₹8.81L after 5 years, ₹15.53L after 10, and ₹48.23L after 20.
How long does it take to double your money?
At 12% a year, money doubles in about 6.1 years. The rule of 72 gets you close without a calculator: divide 72 by the annual return.
| Return a year | Years to double | Rule of 72 says |
|---|---|---|
| 6% | 11.9 | 12 |
| 8% | 9 | 9 |
| 10% | 7.3 | 7.2 |
| 12% | 6.1 | 6 |
| 15% | 5 | 4.8 |
In today's money it's slower. At 12% with 6% inflation, your buying power doubles only every 12.6 years.
How does inflation change a lumpsum's return?
Inflation turns a 12% return into a 5.66% real return at 6% inflation. That's why an FD paying 7% barely moves your buying power: after 6% inflation, it grows about 1% a year in real terms, before tax.
Is a lumpsum or a SIP better?
If the money is already in your hand, a lumpsum usually ends higher. ₹5 lakh invested at once grows to ₹15.53L in 10 years at 12%. The same ₹5 lakh spread as a SIP of ₹4,167 a month grows to ₹9.68L.
A SIP wins on comfort, not maths: it invests money as it arrives and spreads your entry price. The SIP vs lumpsum calculator puts the two side by side.
How do you invest a lumpsum without timing the market?
Use a systematic transfer plan (STP). Put the lumpsum in a liquid or short-term debt fund, then move a fixed amount into an equity fund every month for 6 to 12 months. The money earns something while it waits, and you avoid putting it all in at a peak.
What does a lumpsum calculator not account for?
It assumes the same return every year. Four things it leaves out:
- Uneven returns. A fall in the first year costs more than one in the tenth, since there's less time to recover.
- Tax. Equity fund gains held over a year are taxed at 12.5% above ₹1.25 lakh a year. FD interest is taxed at your slab rate every year.
- Exit loads. Some funds charge a fee if you redeem within a set period.
- Costs already in the NAV. Fund returns are after the expense ratio, so use a return you expect after costs.
Frequently asked questions
How is lumpsum return calculated?
Future value = amount × (1 + annual return)^years. ₹5 lakh at 12% for 10 years grows to about ₹15.53 lakh.
How long does it take to double a lumpsum?
About 6.1 years at 12%. The rule of 72 gives a quick estimate: divide 72 by the annual return.
What is the real return on a lumpsum?
The return left after inflation: (1 + return) ÷ (1 + inflation) − 1. 12% with 6% inflation is a 5.66% real return.
Is a lumpsum better than a SIP?
A lumpsum grows more when you already have the money, because it's all invested from day one. A SIP suits money that arrives monthly and spreads out the entry price.
How do I invest a lumpsum without timing the market?
Park it in a liquid or debt fund and move a fixed amount into equity every month with a systematic transfer plan (STP), over 6 to 12 months.
Are lumpsum returns guaranteed?
Only for fixed products like FDs. Mutual fund returns vary year to year, so treat the result as an estimate.