Calculate and understand your mutual fund lumpsum investment returns over a period of time with our online lumpsum calculator in minutes!
*Investing in the securities market carries risk. Please do your own due diligence before investing.
Mutual funds are broadly classified in two ways SIPs & Lumpsum. The lumpsum calculator helps the investor to estimate the returns that will be made by a lump sum mutual fund investment. A lump sum calculator helps to calculate the maturity amount for a given lump sum investment made today. It shows the wealth gained during the tenure of investment for the amount invested at the beginning of the period.
The value of your lumpsum investment depends upon the market performance of investments. However, any lumpsum calculator uses the same formula to estimate returns from lumpsum investments. Dhan’s lumpsum calculator estimates your investment value using a compound interest formula. The formula used is:
A = P (1 + r/n) ^ nt where,
A is the estimated return
P is the present value of the invested amount
r is the estimated rate of return(in %)
t = total duration of investment
n is the number of times interest is compounded in a year
For instance, taking the example mentioned above, assume invest Rs. 50,000 in a mutual fund for 7 years and you expect an average return of 12% per annum. The interest is assumed to be compounded annually.
The formula for lumpsum calculations can be used as follows:
A = ₹50,000 {(1+00.12/1)^7 }
A = ₹50,000 x 2.2107
A = ₹1,10,535
Instead of using this formula to calculate lumpsum investment on your own, using an online calculator like Dhan’s lumpsum calculator, is a much simpler way of computing your investment value.
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