Lumpsum Calculator

Lumpsum Calculator

Understanding Lumpsum Investment

A lumpsum calculator helps you determine the future value of a one-time investment over a given period, considering an expected rate of return.

Key Concepts:

  • Initial Investment: The one-time amount invested at the beginning.
  • Investment Period: The total duration over which your investment will grow, usually expressed in years.
  • Expected Return: The annual rate of return you anticipate from your investment, typically represented as a percentage.

How it Works:

The calculator estimates the future value of your one-time investment, factoring in the compounded returns over the investment period.

Calculation Formula:

Future Value = P × (1 + r)^n

Where:

  • P: Initial investment.
  • r: Annual return rate.
  • n: Number of years.