A lumpsum investment is a single payment into a mutual fund, made once and left to grow. It is what most people do with a bonus, a maturity payout, an inheritance or the proceeds from selling something. This calculator shows what that one payment could become.
Enter the amount, the return you expect and the number of years. You get the maturity value, the gain, the growth multiple and a year-by-year table with a chart. An optional inflation field adds the value in today's money, which is the number that tells you what the corpus could actually buy.
You can choose monthly compounding, which matches the CalcMojo [LINK: sip-calculator], or yearly compounding, which treats your return as a CAGR. The page explains the difference below.
Reviewed by: CalcMojo Editorial Team
The formula
With yearly compounding the return is treated as a yearly rate:
Maturity value = P x (1 + R)^T
where P is the amount invested, R is the yearly return as a decimal and T is the number of years.
With monthly compounding the monthly rate is the annual return divided by 12, compounded every month:
Maturity value = P x (1 + R/12)^(12 x T)
Monthly compounding is the default here because it is the rule used by the CalcMojo SIP calculator, so a lumpsum and a SIP are modelled the same way. It gives a higher figure than yearly compounding for the same stated return, because 12% split into twelve 1% steps has an effective yearly return of 12.68%.
Worked example with the default numbers
Invest Rs 5,00,000 at 12% a year for 10 years.
| Method | Maturity value | Gain |
|---|---|---|
| Monthly compounding | Rs 16,50,193 | Rs 11,50,193 |
| Yearly compounding | Rs 15,52,924 | Rs 10,52,924 |
For the monthly case the check is simple: 1.01 raised to the power 120 is about 3.3004, and 5,00,000 times 3.3004 is Rs 16,50,193. The growth multiple is 3.3 times.
If you want to compare against a fund's published CAGR, choose yearly compounding. If you want consistency with the SIP calculators on this site, keep monthly.
Inflation-adjusted value
A rupee in ten years buys less than a rupee today. The inflation-adjusted value divides the maturity value by (1 + inflation)^years.
Using the same example with 6% a year inflation, the Rs 16,50,193 maturity value is worth about Rs 9,21,459 in today's money. Your Rs 5,00,000 has grown, but in purchasing power it is less than double. Using yearly compounding, the same investment is worth about Rs 8,67,145 in today's money.
The 6% on this page is only a placeholder you can change. There is no single official figure for the inflation you will face over the next decade, so test a few values. Setting inflation to 0 hides the adjusted figures.
Lumpsum or SIP
A lumpsum puts all the money to work from the first day. If you already have the money and a long horizon, that is a strength: the whole amount compounds for the full period. The risk is timing. A lumpsum made just before a fall gives you a poor early experience, and the amount is exposed to a single entry price.
A SIP spreads purchases over months and years, so it averages the entry price and fits regular income. Some investors with a large sum put it in a debt or liquid fund and move it to equity in instalments through a systematic transfer plan. Whether that is better depends on markets, which nobody can forecast. Use the [LINK: sip-calculator] and the [LINK: step-up-sip-calculator] to model the regular-investment route.
Tax on mutual fund gains (FY 2026-27)
For equity-oriented mutual funds, units sold within 12 months give short-term capital gains taxed at 20%. Units held for more than 12 months give long-term gains: the first Rs 1.25 lakh in a financial year is exempt, and the excess is taxed at 12.5%. Surcharge and 4% cess apply on top where relevant.
As an illustration, if the Rs 16,50,193 above were redeemed in full after 10 years with no other long-term gains that year, the taxable long-term gain would be Rs 11,50,193 minus Rs 1,25,000, which is Rs 10,25,193. Tax at 12.5% is about Rs 1,28,149, or about Rs 1,33,275 with 4% cess. The calculator's figures are before tax.
These rates date from the Union Budget of July 2024 and, according to the sources listed below, continue for FY 2026-27, the first year of the Income-tax Act, 2025. Debt and hybrid funds follow different rules that have changed over time, so check the CBDT guidance for your fund type. This is general information, not tax advice.
Practical points
- Use a conservative return. Over long periods a diversified equity fund has produced a range of outcomes, not one figure. Try 8%, 10% and 12%.
- Costs matter. Enter a return that is already net of the fund's expense ratio. Exit load may apply if you redeem early.
- Match the horizon to the goal. Money needed in under three years does not belong in a volatile equity fund.
- Check the starting date. Equity returns depend heavily on the entry point, which a constant-return model cannot show.
Frequently asked questions
How do I calculate lumpsum returns?
Multiply the amount by (1 + annual return) raised to the number of years for yearly compounding, or by (1 + annual return / 12) raised to the number of months for monthly compounding. The calculator does this and also shows a yearly table.
Why are there two compounding options?
Funds usually quote returns as a yearly figure (CAGR), which fits yearly compounding. The CalcMojo SIP calculator divides the annual return by 12, so monthly compounding keeps the two tools consistent. Monthly gives a higher result for the same stated return.
What is the inflation-adjusted value?
It is the maturity value divided by (1 + inflation) raised to the number of years. It estimates what the corpus could buy in today's prices.
What inflation rate should I use?
There is no single reliable figure for the next ten or twenty years. Use your own estimate and try a few values. The 6% shown is only a placeholder.
Is lumpsum better than SIP?
Neither is better in every case. A lumpsum compounds the whole amount from day one but depends on the entry point. A SIP spreads that risk and suits regular income.
How is lumpsum mutual fund gain taxed in FY 2026-27?
For equity-oriented funds, gains within 12 months are taxed at 20%. After 12 months, gains above Rs 1.25 lakh in the year are taxed at 12.5%. Other fund types follow different rules.
Are lumpsum returns guaranteed?
No. Mutual fund returns are linked to markets and can be negative, so the figure here is only an estimate from the return you enter.
Sources & Methodology
- PIB: Capital gains taxation simplified and rationalised (Budget 2024) — short-term rate of 20% and long-term rate of 12.5% on listed equity and equity-oriented fund units, and the Rs 1.25 lakh long-term exemption.
- PIB: CBDT FAQs on the new capital gains regime — holding periods and treatment of other fund types.
- Income-tax Act, 2025 as amended by the Finance Act, 2026 (Income Tax Department) — the Act in force from 1 April 2026.
- AMFI: investor disclaimer — mutual fund returns cannot be guaranteed.
- Method: compound growth FV = P x (1 + r)^n with a monthly rate of annual return / 12 (matches the CalcMojo SIP calculator) or a yearly rate; real value = FV / (1 + inflation)^years.
This calculator provides estimates based on a constant assumed return. Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Returns are not guaranteed, and past performance does not indicate future results. This is not investment or tax advice; speak to a SEBI-registered investment adviser or a qualified tax professional.
Data accurate as of: November 2026